Free Markets, Free People

This Is “Rich”

I‘m still amazed that many people who put their support behind Obama in the presidential election, are suddenly discovering things about him they don’t like.

Really? Now they discover Obama is a class warrior? It comes as no surprise for those of us who took the time to assess where he came from and what (little) he’d done.

Suddenly, the rich are concerned that the guy they backed may not be what they hoped he was (notice that’s the correct context in which “hope” should be used when “hope and change” is spoken):

Some of Barack Obama’s richest supporters fear they have elected a “class warrior” to the White House, who will turn America’s freewheeling capitalism into a more regulated European system

Ya think? What was your first clue – his remarks about “spreading the wealth” to Joe the Plumber or the thousands of other things he said which might imply such a tendency?

And as an aside, America’s capitalism is about as “freewheeling” as a modern waterslide is “death defying”.

Chris Edwards of the Cato Institute, a free enterprise think tank, said Democrats in Congress were unnerved by the president’s latest plan to raise $210 billion over 10 years from multinational corporations.

The money is needed to pay for a national debt that will double over the next five years; and triple over the next 10 years to $17.3 trillion. But the crackdown already faces fierce Democratic resistance.

“These big companies are based in New York Boston, Seattle and Silicon Valley, where Democrats dominate,” Mr Edwards said. “Obama’s tax plan is already cleaving him from his big corporate supporters,” he said.

The good news in this, of course, is that Congress has to pass the legislation that enables this, and per Edwards, they’re getting cold feet. The reason is also obvious – any “cleaving” of Obama from “big corporate sponsors” also means the rest of the Democrats suffer the same fate.

The level of taxation necessary to pay for the profligate spending now taking place will have to be massive as anyone with a 5th grade education understands. But the Dems also understand that any taxation that takes place must be other than income taxes because it is important to maintain the mirage that “95% of all Americans” are getting tax cuts. That leaves “the rich”, corporations and smoke and mirrors.

The rich have been identified ($250k or more), corporations are on the block with much higher taxation in the offing. So the investor class and the engine of the economy are under assault. The smoke and mirrors show? Wait until health care and cap and tax trade hit. 100% of Americans will be paying large sums for both.

But back to the point – the deeper we get into the Obama administration, the more we come to understand how gullible a good portion of the American public appears to be. There is a certain level of satisfaction with the buyer’s remorse being seen among many of his supporters as they see what their vote has actually bought. I sure hope they don’t shop for other important items as badly as they apparently shop for presidents.


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6 Responses to This Is “Rich”

  • the president’s latest plan to raise $210 billion over 10 years from multinational corporations.

    Apparently, this tax will hit high tech companies such as Cisco, Apple and others that do a lot of business offshore in the Pacific Rim countries where the transaction never touches US shores.  Obama wants a piece of this offshore commence.

    There was a story that Cisco has $26 billion in profits sitting offshore but doesn’t want to pay to repatriate it.  They had hoped that the “stimulus” would give a tax break to bring this money home, but the Congress killed that idea so they recent took a $2 billion loan instead of paying the taxes.

    • Seems like Obama and dems have a conception of the free market that it doesn’t respond to regulation or taxation. I think this kind of misperception is especially in place regarding the “furrin” economy.

      Its like America and American companies exist in a vaccum and do not compete with foreign companies in foreign markets. Even if there is some nebulous understanding of this, it must be a small, small amount of business, and of course any regulation and taxes wouldn’t affect it. There is no conception that selling CISCO routers made in Taiwan directly to Japan might be 10% of Cisco’s business, and that Huawei or whoever competes with them will gleefully take market share if CISCO has to add US taxes to these transactions.

      The end result will be global headquarters moving overseas, and the US only having branch offices.

  • I get the case for why Obama may be on the decline in terms of popularity, but have we seen evidence of it yet?  I keep looking for the evidence, and I have yet to see it.

    The MSM will cover for him to the bitter end.  After all, they helped him get elected. Perhaps we will have to look for other signs his populaity is on the wane.  The Tea Party’s are the first real indication of wide scale unhappiness of the Obama Administration policies (and look how the MSM painted these gatherings).

    In any event the tone of this post seems to assume that Obama is going to alienate his base with his policies and I just don’t see the evidence of this happening yet.  Time will tell. 


    • Only when the taxes actually hit will the majority start to pay attention. Otherwise its just a bunch of meaningless number to the average joe.

  • I wonder how the peace loving Obama supporters will take this …

    US officials responded with massive diplomatic pressure, publicly accusing Pakistan of “abdicating” to the Taleban. Behind the scenes, they also threatened to launch missile attacks on Swat and to withhold — or at least attach strict conditions to — billions of dollars in military and civilian aid. Yesterday the House Appropriations Committee approved an initial package of $1 billion (£665 million), including $400 million for improving Pakistani forces’ counter-insurgency abilities and $600 million for education and democratic reforms.

    It’s dated yesterday, so it must be Obama pressuring a poor 3rd world country by threatening military intervention

    Can you say … “cowboy”