Babalu Blog: Voting for Obama is Economic Suicide

July 01, 2008

Voting for Obama is Economic Suicide

It is no secret; Obama has said it himself. He is going to hike the income tax something fierce. With him simply doing nothing, the tax rates are going to rise to 1994 levels and then he wants to whack even more households with income over $ 250K. All the narrow-minded short-sided liberals love this "soak the rich" concept. But it is moronic and will hurt not the rich but small businesses. You see folks. Small business are the bread and butter of the US Economy. Most small business are S-Corps. The S-Corp. income passes through onto your personal income tax return as a K-1. So even if you didn't take everything out of the corporation because say you want to invest in growth and the future, the individual taxpayer will be taxed on that income. Thus it is very easy to reach that $ 250K threshold. And frankly, to say that $250K is rich is perverse. Those in this bracket already have all exemptions and deductions phased out. So you are literally getting taxed up the ying yang. Moreover, if you live in states like California and New York, coupled with the state income tax, as reported in the WSJ today, your tax rates will be akin to those in France as high as 60%.

All I know is under a Barack "Taxman" Administration assuming all things equal, my taxes will go up by $8K a year. So in 4 years, these wankers will suck out at least $ 32K out of my pocket of my hard work. Unlike Obama who lives off of book royalties probably drives a Benz and sends his kids to expensive private schools, I have to work. I work my ass off. I'm not friggin rich. Yet these constipated liberals think that by giving me the royal screw in the tune of $ 32K in 4 years is going to make the country and me better off? Bullshit! So if I work harder, I'm going to get whacked by the government even more. I could use that money for my retirement or to purchase goods and services (which helps the economy Mcfly). But Obama and his liberal lackey neo-socialists think they know better than me in how I should spend and use my hard earned money.

I'll be damned if I will let anyone take my property without a fight. So to all you liberal pointy headed bleeding heart pansies who plan on voting for the biggest phony in the last 50 years, all I can say to you is PISS OFF WANKER! The truth about this phony will come out.

And now for something completely different, the WSJ Journal article I was mentioning above:

And speaking of tax rates (see here), celebrity chef Alain Ducasse changed his citizenship this month from high-tax France to no-income-tax Monaco. He says it wasn't a financial decision but an "affair of the heart." Of course. Nonetheless, plenty of other Frenchmen have moved abroad to escape their country's confiscatory taxes.
Americans should be so lucky: Ours is the only industrialized country that taxes its citizens even if they live overseas. That hasn't been a big problem as long as U.S. tax rates have been relatively low. But with Barack Obama promising to raise rates to French-like levels, this taxman-cometh policy could turn Americans into the world's foremost fiscal prisoners.

And make no mistake, taxes under a President Obama would be à la française. The top marginal tax rate on income – including federal, state and local income and payroll levies – could reach 60% for many self-employed New Yorkers and Californians. Not even France's taxes are that high now that President Nicolas Sarkozy has capped the total that high-earning Frenchmen like Mr. Ducasse can pay in income, social and wealth taxes at 50% of earnings.

Mr. Sarkozy set this "fiscal shield" because he knows that tax rates affect behavior. When he visited London this year, he observed that the British capital is now home to so many French bankers and other professionals seeking tax relief that it's the seventh-largest French city. Those expatriates choose not to use their creativity and investment capital to benefit France and its economy.

Senator Obama's plans to raise income, Social Security and capital-gains taxes amount to a belief that people don't react to punitive tax rates. If so, he needn't worry about people leaving the country and could let them pay taxes in whichever part of the globe they choose to live in. Once Americans are paying French-style tax rates, they ought to have the same freedom to move as Alain Ducasse.

Posted by Cigar Mike at July 1, 2008 09:26 AM

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I do believe if the fools of this country actually elect Ocaca, we will have the first president to be impeached before his 2nd year is finished. I say two years because of the way the tax system works....everyone will visit thier tax guy and be shocked...it's not like we're not warning them...or maybe everyone just loves giving thier money away to gov't programs that don't work and keep the poor on the gov't teet.

Posted by: readytoshoot at July 1, 2008 10:31 AM

You can't impeach a President for being a fool. Only for high crimes and misdemeanors. So absent him committing a crime, no matter how much he screws the economy into the ground, we're stuck with him for 4 years.

Posted by: Cigar Mike Pancier at July 1, 2008 10:34 AM

Given the fragile nature of the current economy, I could see any major tax increase pushing it thru recession and straight into depression.

And while Congress can't impeach him for being economically unsound (especially since they helped him do it), the crowd of the suddently destitute with pitchforks and torches can.

Posted by: I R A Darth Aggie at July 1, 2008 10:47 AM

I think our only recourse is going to be voting in an opposition congress in 2010.

Posted by: jsb at July 1, 2008 10:51 AM

IRA, the only thing that could make a difference would be by voting the dems out in the midterm election. Impeachment can't happen without commission of a crime.

Posted by: Cigar Mike Pancier at July 1, 2008 10:56 AM

As an S corporation part-owner, the scenario Cigar Mike painted happened to me. We didn't plan super well and our year-end investments in new equipment, software, etc. did not offset a large "cash basis" profit. As owners, we only distributed about 30% of the cash basis income, as we re-invested the rest back into the firm.

Because of this pass-through of "profit", my "income" soared to just over $250,000 and many of my previous deductions (medical expenses, etc) no longer met the percentage limitations of "gross" income. I got socked with about an extra $40,000 tax bill. My business partners and I were completely disgusted, and this is with the current tax situation. With what Obama is proposing, I would've faced the extra Medicare and Social Security taxes for inicome over $102,000, which is another $10,000 right there! And not to mention the increased tax percentage for incomes over $250,000 would go back to their astronomical rates and God knows how much more additional taxes I would be paying.

Some may say that it is fair - the "rich" should pay more. Well, I work probably 60 to 70 hours a week and have sacrificed a lot of potential family time and just plain fun time to give good employment (health insurance, 401k, bonuses, etc.) to 35 people here. When Obama raises the capital gains tax, my business will drop in value enormously. If anyone were to ask me, I would say don't start a business now - it is foolish. Electing Obama will destroy our economy for a long time to come. It makes me sick, but I don't see him losing either....sad.

Posted by: Cangrejero de Caibarien at July 1, 2008 02:38 PM

In an S-corp benfits provided within the partnership are considered income. I'm no fan of Mccain but at least he mentions the AMT and a possible solution to it. Obamas take on capital gains will have a devastating effect on real estate investment. forget the housing market turning around when he kicks it up.

Posted by: Eloy M at July 1, 2008 07:06 PM

July 01, 2008

Voting for Obama is Economic Suicide

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