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tax increases


Obama and taxes

President Obama is on his newest attempt to change the subject and find something to take to the people that might interest them and distract from his abysmal economic performance.  It’s taxes.  Specifically, he’s decided to make an issue of the automatic tax increases that will take effect in January and claim he does not want to see taxes increase on anyone but those nasty rich who need to “pay their fair share”.  Or, back to class warfare.

A) He likes to refer to these as the “Bush tax cuts”.  In fact, they’re the current tax rate.  Have been for years.  What he wants to do is see a tax increase on the rich, but no one else.  I’m not sure how else one characterizes that but “class warfare”, especially given the percentage of total taxes that top income group pays already.

B) Republicans are saying no tax increases on anyone.  Democrats like to characterize that as protecting the rich.  I like to characterize it as an attempt to address the real problem – out of control government spending.

C) The nasty “rich” Obama wants to tax also include almost a million small businesses.  That’s one of the primary reasons, in this weakening economy, that Republicans are right not to agree to any tax increases.  It is both stupid and economically suicidal.  But then you have to know about economics and the business world to understand that.

D) Democrats had two years of a complete monopoly on government to get this done and didn’t.  It’s not the Republicans who have prevented anything.  It is total incompetence on the Democratic side of the aisle.  And, as Obama’s favorite pastor likes to say, “those chickens are coming home to roost”.

E) Finally, Barack Obama has already raised taxes on the middle class despite his statement in a speech yesterday claiming he had no desire to raise middle class taxes.

The tax is called the mandate in ObamaCare.  It goes like this:

 

Taxmandate

 

75% of the mandate tax falls on the middle class.    That is a middle class tax hike in anyone’s book.

So when he claims he has no desire to raise the taxes on the middle class, that may be true … now.  Because, in fact, he’s already done it.

~McQ

Twitter: @McQandO


How should the GOP respond to the Obama demand for increased taxes?

I have a pretty good idea, but first, here’s the gist of the demand:

President Obama pressured Republicans on Wednesday to accept higher taxes as part of any plan to pare down the federal deficit, bluntly telling lawmakers that they “need to do their job” and strike a deal before the United States risks defaulting on its debt.

Declaring that an agreement is not possible without painful steps on both sides, Mr. Obama said that his party had already accepted the need for substantial spending cuts in programs it had long championed, and that Republicans must agree to end tax breaks for oil and gas companies, hedge funds and other corporate interests.

So how should the Republicans answer this demand?

Well, as I mentioned in my post about why the GOP should stand firm on declining to raise taxes, the problem isn’t tax revenue.  It is, quite simply, spending.

What the Democrats and Obama will promise you is they’d use any increased revenue brought in by increased taxes to reduce the deficit and debt.  But that is never how it really works and we know that.  It’s like giving an alcoholic another shot – he’s going to drink it.  Revenue isn’t the problem.  Spending is the problem.

So what the GOP must do is say, “Mr. President, when the government has proven that it can indeed cut spending and cut it drastically, and it has done everything it can conceivably do in that regard, if there is a revenue problem at the bottom of it, then we can discuss tax increases.  But until such a time that it is proven – through action, you know actual cuts – that the government has done all it can in the area of spending cuts, there’s nothing further to discuss in terms of tax increases.”

Period.

~McQ

Twitter: @McQandO

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