Obama's wealth envy redistribution plan | Kevin Colby: News and Political blog

Obama’s wealth envy redistribution plan

Here is President Obama’s plan to tax the evil rich for his legion of wealth envy followers:

The tax increases fall into three major categories:

—-$636.7 billion would come unabashedly at the expense of “upper income” families by reinstating the 36 percent and 39.6 percent tax brackets reduced under Bush. The major targets are households earning more than $250,000 or individuals with more than $200, 000 in income. Apart from the higher rates, these taxpayers would face a higher 20% tax rate on capital gains, and a reinstated personal exemption phase out and a limitation on itemized deductions.

—-$317.7 billion more is dedicated to the new health care reserve fund but targeted again to households in the same income range. The money would be raised by further squeezing the value of deductions now used to shelter income, by effectively capping the tax offset at 28 percent compared to the higher rates the wealthy will be paying.

—-$353.5 billion is attributed to “revenue changes and loophole closers” largely targeted at the oil and gas industry and companies who move operations overseas. Obama would plow back a portion of these revenues to pay for his own set of tax breaks for families but also business. The single largest item is his $800 a year “Making Work Pay” credit to help households offset the cost of payroll taxes. But working class families would benefit as well from his provisions to expand the earned income tax credit and make it easier for low-income families to qualify for the child tax credit. In the case of business, he also has a set of more targeted tax breaks that suit his philosophy. He seeks to eliminate capital gains taxes for qualified investors in small companies, and at a 10-year cost of $74 billion would make permanent the current research and experimentation tax credit –important to the high tech industry.

Would you like to get rid of the IRS? Have you ever heard of the Fair Tax Act? The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.

* 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
* Ensures Social Security and Medicare funding
* Closes all loopholes and brings fairness to taxation
* Abolishes the IRS

Bill Archer, former head of House Ways and Means Committee did a survey on the fair tax. The survey was conducted among 500 European companies. One simple question was asked, ” What would you do if the U.S. installed the FairTax.” The responses where astounding. Four hundred said they would build their next plant here. The remaining one hundred said they would move their corporate headquarters here. My guess is that this would be just the tip of the iceberg as to what would follow. Our current tax code does the exact opposite. Product labels would contain the same foreign corporate names but the labels would also contain ” MADE IN THE U.S.A.”

Visit www.fairtax.org for more information.

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