My grandmother used to say that people should never laugh at another person who is a target of attacks because they could well be next, which is why we should not laugh at the attacks on the “rich.” Since the “rich” can’t possibly pay enough taxes to cover the trillions we are spending, I suggest that the middle class, who are already paying in higher costs, will be next.
President Obama is back on the demonize-to-win campaign trail this week. His latest speech renewed his class warfare strategy to tax and spend the Keynesian way.
President Obama wants to end the “tax breaks” for millionaires, billionaires, hedge fund managers, oil & gas companies, and, oddly, corporate jet owners.
Obama was for corporate jets up until this latest sound bite. He signed the Stimulus in February, 2009 and HR 5927 (small business lending Fund Act) in September 2010, both of which included tax breaks that helped businesses buy their own planes. Read here: The tax breaks that are increases
The tax breaks are not breaks at all but a reinstitution of the tax increases of the 90’s, which were under a severe progressive tax system aimed solely at balancing the budget and cutting the deficit. These new taxes would not be used for the Clintonian deficit-cutting purpose, but rather, to spend without end.
Obama wants these excessive taxes back for those who pay most of the taxes already and he wants it during a recession and when our energy costs are increasing rapidly. There isn’t enough money from taxing the “rich” if we tax them at 100% so, eventually, the tax increases will of necessity filter to us. If they want the super rich to not get away with tax breaks, close the loopholes, don’t add more socialism, which is what a progressive tax system is.
Nearly half of all U.S. households pay no federal income taxes, while the top 10 percent of U.S. households now pay more than 70 percent of all income taxes. Companies pay the highest corporate taxes in the world. There are super rich who use loopholes to skate – it would make much more sense to simply close the loopholes. Many of the Democratic rich complain that they aren’t paying enough – who is stopping them from paying more and not using loopholes?
From the AP:
- About 47 percent will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability. That’s according to projections by the Tax Policy Center, a Washington research organization.
- In recent years, credits for low- and middle-income families have grown so much that a family of four making as much as $50,000 will owe no federal income tax for 2009, as long as there are two children younger than 17, according to a separate analysis by the consulting firm Deloitte Tax.
- Less noticed were tax cuts for low- and middle-income families, which were expanded when Obama signed the massive economic recovery package last year…The result is a tax system that exempts almost half the country from paying for programs that benefit everyone, including national defense, public safety, infrastructure and education. It is a system in which the top 10 percent of earners — households making an average of $366,400 in 2006 — paid about 73 percent of the income taxes collected by the federal government.
- The bottom 40 percent, on average, make a profit from the federal income tax, meaning they get more money in tax credits than they would otherwise owe in taxes. For those people, the government sends them a payment.
- “We have 50 percent of people who are getting something for nothing,” said Curtis Dubay, senior tax policy analyst at the Heritage Foundation. Read more here: Yahoo finance stats on taxes
Obama is targeting couples making $200,000 – $250,000 which, in NY, covers small business owners, teachers police officers and other union people. People in this income range cannot afford corporate jets.
If oil & gas are hit, they will pass the costs to us. Increase in food and fuel is often not considered when Obama’s administration computes inflation (I guess it’s an inconvenient truth), but here it is from the consumer price index summary:
12 Month Period November 2010 – May 2011, Seasonally Adjusted Except for 1 (medical care commodities)
All items......... 3.6 Food............. 3.5 Food at home.... 4.4 Food away fromhome 2.2 Energy.......... 21.5 Energy commodities. 36.2 Gasoline-all types 36.9 Fuel oil (1)..... 36.0 Energy services.. 1.1 Electricity...... 1.8 Utility (piped) gas service...... -1.2 All items less food and energy.......... 1.5 Commodities less food
energy commodities.... 1.2
New vehicles....... 3.4 Used cars and trucks 4.1 Apparel.............. 1.0 Medical care commodities (1).............. 3.0
Services less energy services.............. 1.6 Shelter................. 1.1 Transportation services 3.3 Medical care services... 3.0