At the risk of being called a racist, my criticism of Barack Obama continues. I don't seek ways to criticize, I simply read stories and respond:
Today, he announced an economic plan that would increase taxes on those families making over $250,000 a year, and cut taxes for those making less than 150K. This has me a little confused because back in June he announced this exact plan but stated it was his way of fixing Social Security, basically increasing the payroll tax for those who make over 250K. So, if you make over 250K a year it appears that Obama will raise BOTH your income tax and your FICA taxes. Ouch!
He calls it the "trickle up" effect, and seems to believe that cutting taxes for the middle class will somehow stimulate the economy. Wow.
This in light of the fact that the top 1% of US income earners pay 40% of the nation's income tax revenue, and the top 25% of income earners pay 86% of the revenue, while the bottom 50% of income earners pay only 3% of America's income taxes. For some reason Obama sees this as unfair (and, in a way, he's right) and wants to change things so the "rich" pay MORE!!!
As a side note, since I am in the medical field, I think it's worth saying that if a hypothetical physician sees too many patients he/she runs the risk of falling into Obama's "wealthy" classification. Basically, he will give that doctor incentive to decrease the work load since it will be way too costly otherwise. Sure, that doctor wants to serve his patient population, but this can't happen if it's financially detrimental. This is just one example of why these kinds of taxes don't work. For some, it could lead to cutting patient enrollment. For others, maybe it's cutting jobs, or downsizing operations, or postponing any plans for expansion. There IS a point where the financial gain is overshadowed by the "penalty" of taxation.
In addition to these taxes, he has also previously stated that he will DOUBLE the capitol gains tax and place a windfall profits tax on large corporat profits, namely the oil companies. Anybody who knows even a little economics should now be terrified of a Barack Obama administration.
Here is what will likely happen if Obama does the things that he is proposing:
First, small businesses will fail. These are the folks who fall in the 250K category. They fit Obama's description of wealthy, but are hardly super-rich. Small business is a major driving factor in our economy, and a major employer as well. So you can imagine what will happen when they are squeezed from both ends of Obama's tax plan. Couple that with the recent minimum wage hike and you have the perfect storm for America's small business. At best, they cut jobs and unemployment goes up. At worst, the business folds, the jobs are lost and the local economy takes a hit.
Then, the windfall profits tax kicks in. What do you think will happen to the price of oil? There will be no limit. Once that skyrockets, again the national and global economy feels the crunch, as it is today. Yet that crunch will be magnified by Obama's stubborn unwillingness to explore US drilling options. Basically, there is nothing Obama plans to do in the short term to bring oil prices down, yet he promises a tax on corporate profits that will without a doubt send oil prices even higher than they are now. One wonders how much more $120+ a barrel oil this economy can take.
Finally, Obama's capitol gains tax. Even Hillary - who rarely meets a tax hike she doesn't like - stated that increasing the capitol gains, even by a small amount, would be a bad idea for our economy. But Obama doesn't want to increase it by a small amount, he wants to DOUBLE it. This means that investment will slow down, and the stock market will plunge. Naturally, the overall economy will take a hit. NEVER has an increase in this tax led to economic expansion...never.
Obama has announced a few plans for the economy, and none of them will amount to actual growth. NEVER has a tax increase led to economic expansion. This is because of a simple premise, and that is that the gov't isn't effective at efficient spending. The private sector is. Under Obama, I fear we will see higher unemployment, more small business failures, decreasing investments, higher inflation, astronomical oil prices, higher food prices, and one of the worst economic downturns since the Great Depression.
The economy is sputtering from oil strangulation and the housing market, there isn't much more it can take before bad things start happening. But small business and investment remain strong. What happens when Obama hits them with his economic policy?