Remember the good old days, just recently, when Barack Obama was up front about his tax and spend proposals?
July 24th, 2008
by Allan Erickson
Obama proposes billions of dollars in increased government spending to create jobs (government creating productive jobs?) and to subsidize programs for the poor, including health care for illegal aliens.
He says all this will be funded by pulling our troops out of Iraq, cutting corporate tax breaks, and raising taxes on “the rich.” Obama says we need to make the wealthy pay more (despite the fact they carry the lion’s share of the burden even under the Bush tax cuts.)
We know from a proven track record that tax cuts in the JFK, Reagan and Bush administrations stimulated the economy and increased federal revenue. Proven facts.
Obama wants to do the opposite: tax the productive elements of society, hand out entitlements that are duplicative, all of which means less government income, and more government spending, and a downturn in the economy, translating into an acceleration of the timeline to bankruptcy while we allow Al Qaeda to regain ground in Iraq and aggravate the illegal immigration problem by subsidizing illegal activity.
On the spending side, forty-five percent of the federal budget is devoted to Social Security, Medicare and Medicaid.
On the income side: “Individual income taxes and payroll taxes now account for nearly 80 percent of federal revenue and corporate income tax revenue makes up about two-thirds of the rest (13 percent of the overall). Excise taxes, estate and gift taxes, customs duties, and miscellaneous receipts bring in just 7 percent of federal revenue.” (Source.)
Who pays the most income tax?
According to various websites compiling statistics, the top income earners in America pay most of the income tax. This 2007 article sums it up:
Congress’ Joint Economic Committee disclosed that the richer half of the
American population pays nearly 97 percent of income taxes. Most of that, 54
percent, is paid by those in the top 5 percent, Investor’s Business Daily
And the richest of the rich – just the top 1 percent – pay a hefty 34
percent of all personal income taxes collected by the federal government.
Meanwhile, about 14 million lower-income Americans have been removed from
the income tax rolls since 2000 due to the earned income tax credit and the
per-child tax credit, IBD reports.
It would appear the tax burden has already been shifted to the “rich” but let’s not let facts cloud our judgment or interfere with the mantra “tax cuts for the rich!”
And who pays payroll tax?
Employers of course.
Obama would have us believe it is a good thing to tax the productive people and organizations so they become less productive, and fund the unproductive sector which neither helps them nor improves society or economic health. Talk about a cost/benefit analysis! Where’s the benefit? Only government benefits. Everyone else loses.
Obama’s ideas seem to distill down to this: if it moves, tax it, if it complains, fund it, if America’s volunteer force appears to be winning, surrender, and if it’s an illegal alien, treat him better than a legal citizen.
This is change? This is hope? This is unity?
Even an 8th grader should be able to see the Obama approach is a prescription for disaster a la Jimmy Carter. Dangerous? Oh yes, on numerous fronts, including the war on terror.