Posted by
John Caile on Monday, October 13, 2008 2:12:28 PM
Obama and his Democrat allies continue to scam the public, claiming to be for "middle class tax cuts" while attacking conservative Republicans for "giving" tax cuts to "the Rich." Obama has also repeatedly mouthed the canard that "95% of Americans will get a 'tax cut'" and that "only those making more than $250,000 will pay more." He further claims that "the vast majority" of small businesses are under that magic number.
Now setting aside for a moment the Democrat's longstanding hatred for those more successful than they are, what is the reality? Well, to be blunt, Senator Obama is lying, and lying about nearly every aspect of his "plan."
First, the 95% figure is false. Since more than 30% of working Americans don't pay any income taxes now - many in fact get a welfare check - how can they get a "tax cut?" Well, when the good Senator refers to giving these people a "tax cut" he is actually talking about giving them...a BIGGER check!
Second, the claim that "the vast majority of small businesses earn less than $250,000" is also false. The opposite is true - according to government figures, the majority of small businesses are well above that figure, not below it. And the first ones affected by a tax hike will not be the employers - it will be the employees, because companies will either have to cut back on salaries and benefits, or worse, lay off some workers.
Remember the most famous example of this kind of Democrat class-warfare-based economic stupidity? The "luxury tax" on boats - to "stick it to those rich guys" you know. Well, the wealthy simply stopped buying boats. And who got hurt? Not the "rich" - they simply had more money in the bank. No, the ones who paid the price for this absurd policy were the blue-collar boat builders. When sales tanked, the workers had to be laid off. Ironically, the majority of the boat builders voted for, you guessed it - Democrats. Way to go, guys.
But there is an even larger problem with all tax schemes that are based more on envy than sound policy. I actually am one of those small businesses with revenues under $250K, however, like most such businesses and sole proprietors, I purchase my materials and supplies from businesses that are well above that threshold, and they WILL be adversely hit by Obama's tax plan.
And what do you think will happen? What always happens - ALL small businesses will have to pay higher costs for the raw materials they need to run their companies. And they will then have to pass those increased costs on to their customers - you. But hey, we didn't technically get a "tax increase," so no problem, right?
This is the fundamental fallacy in the "tax the rich and business" approach: whenever you tax "the rich" (or "business"), the truth is we ALL pay - in the form of higher costs of everything we buy (and a slower economy to boot). Oddly, those hurt the most by these increasingly socialist policies are the very same "poor" and "middle class" voters who put left-wing Democrats in office.
So, all of you who are willing to trade your economic freedom for the false promise of "economic justice" (an oxymoron, by the way), you may get exactly what you asked for.
Just don't complain when I am able to say "I told you so."