Economists: Obama's tax plan will ruin the economy..and the tax code as well

Economist: Obama's Socialism Will Wreck the Economy
It'll Ruin the Tax Code as Well

Posted by: Brian Faughnan

Economist Adam Lerrick asks whether the tax code is at a tipping point, and if Barack Obama will shove it over the edge:

What happens when the voter in the exact middle of the earnings spectrum receives more in benefits from Washington than he pays in taxes? Economists Allan Meltzer and Scott Richard posed this question 27 years ago. We may soon enough know the answer.

....Barack Obama couches all of his talk in the language of 'fairness;' of trying to make sure that everyone gets 'a slice of the pie.' But in employing the rhetoric of redistribution, class warfare, and yes, socialism, Obama ignores how progressive the tax code already is. It's often said that when you rob Peter to pay Paul, you can always count on Paul's support. In trying to push the fairness needle further, Obama is attempting to lock that rule in as a foundation of tax policy.

As the Tax Foundation points out, the tax code already redistributes $1 trillion from the top 40 percent of earners to the lowest 60 percent. How much is enough for President Obama? And what happens if we discover, as France, Germany, the U.K., and much of Europe did, that you will destroy the economy and ruin government finances if you allow the bottom half of earners to vote themselves whatever benefits they want, at the expense of the minority.

Small business and Obama---Kiss the American Dream Good-bye

Obama will bankrupt small business. As a small business owner I can personally say that Obama's tax plan will ruin the American Dream for millions of Americans. The Wall Street Journal writes:
"Mr. Obama's tax increase would hit the bottom line of small businesses in three direct ways. First, because 85% of small business owners are taxed at the personal income tax rate, any moderately successful business with an income above as little as $165,000 a year could face a higher tax liability. That's the income level at which the 33% income tax bracket now phases in for individuals, and Mr. Obama would raise that tax rate for those businesses to 36%.
Second, the Obama plan phases out tax deductions (the so-called PEP and Pease provisions), thus raising tax rates imposed on this group by another 1.5 percentage points. Finally, Mr. Obama would require many small business owners to pay as much as a four-percentage-point payroll tax surcharge on net income above $250,000. All of this would bring the federal marginal small business tax rate up to nearly 45%, while big business would continue to pay the 35% corporate tax rate.

Tax truth

It is amazing how Marxisant radical Barack Obama gets away with campaigning on how he will give a tax break to 95% of Americans when his record shows that he has voted for tax increases 300 times as a state senator and 94 times as a US Senator.
But, he's not alone.
Most Democrats believe in "spreading the wealth around."

Dem Leader Barney Frank of Fannie Mae fame announced yesterday that "there should be tax increases" and that "there are plenty of rich people we could tax."

Obama's $850 billion dollar plan

From www.gatewaypundit.com:

Obama has proposed a couple of hundred billion buckaroos in new government spending along with new tax increases. But Obama may have just been getting started. Back in December, Obama sponsored the "Global Poverty Act," a bill that proposed the following (Efharisto to the American Thinker for spotting this one):
To require the President to develop and implement a comprehensive strategy to further the United States foreign policy objective of promoting the reduction of global poverty, the elimination of extreme global poverty, and the achievement of the [U.N.] Millennium Development Goal of reducing by one-half the proportion of people worldwide, between 1990 and 2015, who live on less than $1 per day.What this bill would do, in short, is commit the United States to the U.N. declared goal that industrialized countries should spend 0.7 percent a year of their gross domestic product on foreign aid. Over the next decade or so, that would work out to around $850 billion.Just remember... To Obama and Biden paying taxes is a patriotic act-- even when that tax money supports third world tinpot dictators.

Obama and Tax Cut truths

From John Feehery http://www.thefeeherytheory.com/

1) History: When it comes to cutting taxes, Barack Obama is a virgin. He has never voted for a tax cut in his legislative life. He has had 94 opportunities to vote for a tax cut in his Senate career, and he has voted no each and every time. When you have a long history of voting to raise taxes, you can’t convince voters that you are a born-again tax-cutter. Sorry. Nice try.
2) Actual plan: According to independent analysts, his tax hikes will make America’s tax rates the highest in the world. The Heritage Foundation said this: “Sen. Obama's new tax rate would give the United States one of the highest tax rates among developed countries. Currently only six of the top 30 industrial nations have a tax rate for all levels of government combined of over 55 percent. Under this tax plan, the United States would join this group and have a higher top rate than such high-tax nations as Sweden and Denmark. The top marginal rate would exceed 60 percent with the inclusion of state and local taxes, which means that only Hungary would exceed Sen. Obama's new proposed top tax rate.”

Obamanomics "Taxation at gunpoint is just neighborliness"

Obama's GRAND PLAN for financial relief for American's is a redistribution of wealth. He states that his plan is 'just neighborliness'. When he wants to give 95% of Americans tax relief he fails to mention that 50% of Americans do NOT pay any taxes.

According to Boston Globe journalist Jeff Jacoby, "What he is really proposing, therefore, is not tax relief but a bald transfer of cash - $1,000 per family, he pledges - from the wealthiest Americans to everyone else. In 1972, George McGovern advocated something similar - a $1,000 "demogrant" for every US citizen. Just last year, Hillary Clinton suggested that the government start off every new baby with a $5,000 savings account. "

When Bill O'Reilly questioned Obama about this and called him on the 'socialist tenet' of 'economic wealth distribution'. Obama countered that it was 'just neighborliness'. ""That's class warfare," O'Reilly objected. "You're taking the wealthy in America, the big earners . . . you're taking money away from them and you're giving it to people who don't. That's called income redistribution. It's a socialist tenet. Come on, you know that" Obama said it was a 'matter of civility."

But Obama's tax returns show that he only donated 1% and 5% of his income when he was making over 1/4 of a million dollars.

"Taxation is not generosity, it is confiscation at gunpoint. Does Obama not understand the difference?" Jeff writes.
http://www.boston.com/bostonglobe/editorial_opinion/oped/articles/2008/09/14/seeing_through_obamanomics/?p1=Well_MostPop_Emailed7
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