Obama’s 95% “tax cut” illusion
For the Obama supporters, a tax cut is no longer letting you keep more of what you earn. In simpler terms, a tax cut includes tens of billions of dollars in government handouts that are disguised by the phrase “tax credit.” Senator Obama is proposing to create or expand no fewer than seven such credits for individuals:
- A $4,000 tax credit for college tuition.
- A 10% mortgage interest tax credit (on top of the existing mortgage interest deduction and other housing subsidies).
- A “savings” tax credit of 50% up to $1,000.
- An expansion of the earned-income tax credit that would allow single workers to receive as much as $555 a year, up from $175 now, and give these workers up to $1,110 if they are paying child support.
- A child care credit of 50% up to $6,000 of expenses a year.
- A “clean car” tax credit of up to $7,000 on the purchase of certain vehicles.
But here is the catch, all but the clean car credit would be “refundable,” which is Washington-speak for the fact that you can receive these checks even if you have no income-tax liability. In other words, they are an income transfer — a federal check — from taxpayers to nontaxpayers. So if you want to give the true name of Obama’s tax cuts, it actually called “welfare,” or in George McGovern’s 1972 campaign a “Demogrant.” Mr. Obama’s genius is to call it a tax cut. It’s all about the redistribution of wealth. Making high achievers pay for low achievers. Read the full story.
There is currently a bill in the house and senate to simplify our tax system and get rid of the IRS, it is called the Fair Tax Act.
Do you know what the FairTax Act is?
* Ensures Social Security and Medicare funding
* Enables workers to keep their entire paychecks
* Enables retirees to keep their entire pensions
* Refunds in advance the tax on purchases of basic necessities
* Allows American products to compete fairly
* Brings transparency and accountability to tax policy
* Closes all loopholes and brings fairness to taxation
* Abolishes the IRS
For more information visit www.fairtax.org.
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Tags: Barack Obama, fair tax, john mccain, tax cuts, tax proposal, wall street journal
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October 21st, 2008 at 3:28 pm
Thanks, but I still like Obama’s plan much better.
Why would we want to further reward the rich who already have the lowest tax burden in the nation.
Reagan and Bush built up the debt, now somebody has go to pay for it. Who else than the people who helped keep them in office.
That’s fair, and it’s called democracy. Clearly MOST American’s save more under Obama and only those making more than 600k are seeing any significant increase.
That’s exactly what I want in a tax plan. It will deter market consolidation and globalization as well giving an edge back to small businesses.
People making over 600k simply aren’t hurting and they all stood by support the GOP while the spent like drunken sailors. They should help pay back their debts, that’s only fair.
October 21st, 2008 at 8:43 pm
Matt, with all due respect, your Utopian views on taxes are not in line with reality. If you subscribe to a doctrine that revolves around increasing taxes on the most productive members of society, that being those hard-working, risk-taking taxpayers who create the businesses and foster job creation in this country (and who are, rightly so, generally well-compensated for such acts), then just wait and see what the consequences will be to you and your own job when government raises the “penalty” on those people for engaging in such growth-minded behavior.
As I type this, my company’s owners are already evaluating their “Plan B” move, which is to relocate the bulk of their operations offshore to any of a growing number of business-friendly countries with very low (or zero) income taxes. These are wise municipalities that recognize substantially lower taxes = substantially higher growth (and thus higher tax revenues for the government).
Keep raising taxes on all those dastardly rich people that “simply aren’t hurting” and you may just find they pick up their toys and leave. Then who are you going to tax?
I see the ideas proffered by the FairTax group as the best recipe for stopping this downward spiral. If you tax citizens on their consumption rather than on their earning, they won’t be encouraged to follow this growing pattern of sending their money and businesses packing for greener pastures.