Obama's Tax Plan and Income Redistribution Hurts the Economy and the Middle Class

Senator Obama's tax plan is packaged as tax cuts for the middle class when in reality there are numerous tax increases on the middle class and on small business owners. Senator Obama's tax policies are similar to those of Herbert Hoover who raised taxes, implement isolationist policies, and drove the American economy into a massive depression. Senator Obama claims that his tax policies that give a government check to people not paying anything in income taxes are done in the name of fairness. However, the economic depression that his policies would likely trigger is fair to no one. Investor's Business Daily lays out the problems with the Obama 'spread the wealth' tax plan in their article Investors Flee From 'Change' Obama Hypes

These tax credits are devised to phase-out based on income, which will ultimately increase marginal income tax rates for middle-class workers. In other words, as you earn more, you suffer a penalty in the phase-out of these credits, which has the exact effect of a marginal tax rate increase. That harms, rather than improves, the economy.

With the bottom 40% of income earners not paying any federal income taxes, such tax credits would not reduce any tax liability for these workers. Instead, since they're refundable, they would involve new checks from the federal government.

These are not tax cuts as Obama is promising. They are new government spending programs buried in the tax code and estimated to cost $1.3 trillion over 10 years.

Obama argues that while these workers do not pay income taxes, they do pay payroll taxes. True, but his planned credits do not involve cuts in payroll taxes. They are refundable income tax credits designed to redistribute income and "spread the wealth."

Meantime, Obama has proposed effective tax increases of 20% or more in the two top income-tax rates, phasing out the personal exemptions and all itemized deductions for top earners, as well as raising their tax rates.

He wants a 33% increase in the tax rates on capital gains and dividends, an increase of 16% to 32% in the top payroll tax rate, reinstatement of the death tax with a 45% top rate, and a new payroll tax on employers estimated at 7% to help finance his health insurance plan. He's also contending for higher tariffs under his protectionist policies.

Finally, he would increase corporate taxes by 25%, though American businesses already face the second-highest marginal tax rates in the industrialized world, thus directly harming manufacturing and job creation while weakening demand for the dollar.

Obama argues disingenuously that his tax increases would only affect higher-income workers and "corporate fat cats." But it is precisely these top marginal tax rates that control incentives for savings, investment, entrepreneurship, business expansion, jobs and economic growth. While he wants to tax the rich, the burden will fall on the poor and the middle class.

Obama's Tax Plan and Income Redistribution Hurts the Economy and the Middle Class

Obama's Plan to Spread the Wealth

Despite the Obama campaign's and media's attempt to discredit 'Joe the Plumber', a fellow who simply asked Senator Obama a question at a campaign event, his question remains valid, and Obama's response proves insightful. Obama's $250,000 a year tax increase provides a barrier to success for the middle class, particularly for entrepreneurs and small business owners. For these people on the bubble there is a penalty for growth. Consequently, this puts the brakes on the growth of many small businesses, which are responsible for a large percentage of new jobs. Raising taxes in a struggling economy on any economic bracket is a terrible idea. Tax increases slow economic growth, and that hurts people across the board. If jobs dry up, it's not the $250,000 plus crowd that will be hurt the most, it will be the middle class.

Senator Obama's response to Joe is interesting. 'Spreading the wealth' is a principle of socialism. This combined with Senator Obama's plan to reduce taxes for 95% of the people, when 30-40% of the people don't pay federal income tax has all the hallmarks of a socialist policy. Senator Obama has never addressed whether people who don't pay taxes would receive a government check. Either his numbers are off or he is creating a welfare class is his plan. Subsidizing low income is the perfect way of encouraging people not to achieve. Why work harder if the government will pay you not to. Why start a new business if the government will penalize you for your success. This is the perfect plan to deaden the economy; penalize success, reward mediocrity, and limit the growth of new/small businesses.

[youtube=http://www.youtube.com/watch?v=0KXRq2bErVc]
Obama's Plan to Spread the Wealth

Sign The Petition To END DEFICIT SPENDING NOW!

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We at "Let's Get This Right" http://www.letsgetthisright.com recognize
that the current economic situation is a bipartisan issue and requires
serious attention.

As President Ronald Reagan once said "You and I are told we must
choose between a left, or right, but I suggest there is no such thing
as a left or right. There is only an up or down."

We at "Let's Get this Right" agree with that statement and we
recognize that the US economy is in enormous trouble. This includes
Wall Street, the US Government, and every American living on
main-street; no one is immune to the impact of the current economic
situation.

When Wall Street needs help it turns to the government, when the
government needs help it turns to the American people and when the
American people need help, it is often too late for us to obtain help
because the government has already over spent the tax dollars, fees
and fines it collects as part of its daily function.

When it needs money for a spending bill, or a financial bailout, the
government either cuts spending somewhere, shifts spending
temporarily, raises taxes on the American people or simply prints more
money.

Sadly, when it prints more money much of it is backed by foreign
governments and investors from countries such as Saudi Arabia, China
and others which do not share our interests, our constitutional
heritage, or our core values.

Regardless, we the people cannot afford to continue to allow the
current reckless spending practices used in Washington, nor should we
allow our country to be in debt or beholding to other nations.
Especially when the average American?s yearly income is on the decline
from which we must all pay for our taxes, insurance, gas,
transportation, groceries, housing, clothing, etc.

So "Let's Get This Right!"

We the undersigned DEMAND that members of the US House of
Representatives, the US Senate and the US President immediately pledge
to commit to the following;

- STOP Any and all deficit spending that is unrelated national defense
until the US budget is balanced.

- START investigating the roll that corporate executives, lobbyists
and politicians played in the current economic downfall to include the
use of subpoena power, and criminal prosecution where necessary.

- CONTINUE to follow these steps until anyone directly connected with
the current economic downfall is no longer in a position to do so
again; especially those who directly benefited from quid pro quo
activity, including political advocacy, legislative action, or
"sweetheart deals" such as low interest loans and campaign donations.

It is time to get back to basics. We the people could not operate our
personal budgets the way that corporations or the federal government
have without ending up out of work and in jail. We the people are not
above the law and those in positions of power should not be either.

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