August 19, 2008
Obama's Embargo on Common Sense - Typical Bleeding Heart Leftist Lightweight Liberal
When fifo and his pals took over Cuba, they brought fairness to their system by making everyone poor and miserable. 50 some years later, in the US election of 2008, an interesting contrast between the candidates. McCain and the GOP want everybody to be rich. This infuriates the left as they loathe success. They loathe when someone makes it big on their own. The left is like a drug pusher. They want you to get hooked on their handouts so they can control you. Interesting statement from "The One" at the California church the other day. He wants to tax the crap out of everyone to "make things fair" notwithstanding the fact that this will not raise more revenue. Sound familiar?
As noted in the WSJ today:
Mr. Obama, by contrast, started out much more directly, suggesting that if you make $150,000 or less you may be poor or middle class. A family with an income above $250,000, he went on to say, is "doing well." And if you find yourself in that category, he's going to target you for a tax hike -- all in the name of creating "a sense of balance, and fairness in our tax code."In fact, the idea of fairness is at the heart of his whole economic argument. And he goes back to it in almost every public appearance.
He talks about it as a general theme: "It is time for folks like me who make more than $250,000 to pay our fair share."
He invokes it as a solution for Social Security: "[W]e will save Social Security for future generations by asking the wealthiest Americans to pay their fair share."
He points to how it guides his energy policy: "The first part of my plan is to tax the windfall profits of oil companies and use some of that money to help you pay the rising price of gas."
And he stuck to it on capital gains, even after ABC's Charlie Gibson noted that the record shows increased taxes on capital gains -- which would affect 100 million Americans -- would likely lead to a decrease in government revenues: "Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness."
Translated into ordinary English, what that means is that it doesn't really matter whether a tax increase actually brings in more revenue. It's not about robbing from the rich to give to the poor. Robbing from the rich will do, especially if it's done in the name of fairness.
Now there are good reasons Mr. Obama is not likely to pursue the revenue side of the fairness question. As this newspaper noted in a recent editorial, the latest data from the Internal Revenue Service does not show to Mr. Obama's advantage. As we come to the end of the Bush administration, the top 1% of American taxpayers already pay 40% of all income taxes -- the highest level in 40 years. The top 10% of income earners pay 71% of the taxes.
So what is "The One" proposing? A Permanent welfare plan via the internal revenue code. Per the WSJ:
Moreover, the tax credits would mostly go to those who pay little or nothing in federal income taxes. His trick is to make the tax credits "refundable." Thus, if the tax credit is for $1,000, but the taxpayer would otherwise only pay $200 in taxes, the government would write a check to the taxpayer for $800. If the taxpayer pays nothing in federal income taxes, the government would pay him the whole $1,000.Such credits are not tax cuts. Indeed, they should be called The New Tax Welfare. In effect, Mr. Obama is proposing to create or expand a slew of government spending programs that are disguised as tax credits. The spending on these programs is then subtracted from the total tax burden, in order to make the claim that his tax plan is a net tax cut overall.
On the tax side of the ledger, the details released by his campaign last week confirm what a President Obama has in mind for our most productive citizens. The top individual income tax rate, for example, would be increased by 13%, to 39.6%; the next-highest rate would be raised to 36%. The top rates on capital gains and dividends would rise by a third, to 20%
The Social Security payroll tax would be raised between 16% to 32% for families making over $250,000 a year. This means that the real returns these people get from their lifetime payments into the retirement program will be driven below 0%, according to my own previous research, which was published by the Cato Institute and elsewhere.
Mr. Obama also wants a permanent federal estate tax, with a top rate of 45%; his health-insurance plan includes a new payroll tax on employers; and he also contemplates several increases in the corporate income tax, including a new so-called windfall profits tax on oil companies.
Then there is the spending side of the ledger. Mr. Obama proposes a fully refundable Making Work Pay Tax Credit, which would have the government pay out $500 to each worker and $1,000 to couples -- reminiscent of George McGovern's 1972 election proposal for the government to send a $1,000 check to everyone.
His American Opportunity Tax Credit would provide a $4,000, fully refundable tax credit for college tuition expenses. His Mortgage Interest Tax Credit would provide a 10% credit -- refundable -- to offset mortgage interest payments for lower- and middle-income families. His Health Care Tax Credits, which the campaign says "will ensure that health insurance is available and affordable for all families," include "a new refundable 50 percent health tax credit on employee premiums paid by employers."
* * *
The latest Congressional Budget Office data shows the bottom 40% of income earners already pays no income taxes. Indeed, they receive a net payment from the federal income tax system -- meaning from the taxpayers -- equal to 3.8% of all federal income taxes, because of the refundable tax credits under current law. The middle 20% of income earners, the true middle class, pays 4.4% of federal income taxes.
Overall, the bottom 60% of income earners pay less than 1% of federal income taxes on net. When "tax credits" primarily go to this group in the form of checks from the government (rather than a reduction in their tax burden) it is simply an abuse of the language to call the spending a tax cut.
Consequently, to say, as the campaign does say, that the candidate's tax plan is a tax cut on net -- and that it would limit taxes to 18.2% of GDP -- is grossly misleading. The Obama tax plan would sharply increase real taxes. It also would come nowhere near to paying for the massive increases in federal spending he has proposed, including the spending that is disguised in the form of refundable tax credits.
But the left just loves this guy. Why? Pure and simple. They want to be f***ed by him literally and figuratively. It's the leftist credo. Why do you think they call them dopes?
Posted by Cigar Mike at August 19, 2008 07:10 AM
Comments
Mike...are you okay? It sounds like you're ready to blow a gasket or something. You raise "shrill" to a whole new level. Get a grip, man. It's politics. It ain't the end of the world. Wow.
Posted by: Rick
at August 19, 2008 07:51 AM
It may not be the end of the world, but under a 4 year administration under the One, it will cost me $8K a year minimum in additional taxes or $32K over 4 years. That to me is a big deal. Why the F**K should I give this knucklehead $32K of my hard earned money? to be fair? for his bogus welfare programs? Puh-lease. I don't know about you, but to me that's a lot of dough and I'll be damned if I'm just going to give it away to Pelosi, the One, and their gang of shmucks and yentas.
Posted by: Cigar Mike Pancier
at August 19, 2008 08:51 AM
Obama isn't a complete moron. I never liked the idea but this almost sounds like the Negative Income Tax proposed by Milton Friedman. Granted, Friedman was all for it if we also abolished all other welfare programs but still that is technically where the idea comes from. Charles Murray does a good job explaining this in his book "In Our Hands". Again the idea is to give the "underclass" cash INSTEAD of welfare...not welfare AND cash. Unfortunately efforts such as these allows BS artists like Obama to propose a "hybrid" plan that combines "conservative" ideas with leftism. He's just looking for an excuse to spend our money
Posted by: theCardinal
at August 19, 2008 09:36 AM
Do you think "Antunez" - the Cuban former political prisoner mentioned in an earlier article - is a dope? After all, he's a lib.
Anyhow, one of his biggest failures will be the oil windfall tax. This failed in the early 80s and it will fail again. It's difficult and costly to adminster and at the end of the day, will not generate the money he thinks it will. Besides, what happens when oil gets cheaper and oil companies start losing money - will he give some of it back?
His tax plan is misguided. It has to be a fair tax plan in if he's gonna raise taxes, do it for everyone. That's fairness.
Posted by: gumercindo
at August 19, 2008 10:13 AM
Rick is a fucking idiot, living off the government dole, so no doubt he'd love to see a huge expansion in the federal government.
Cardinal, the problem with trading that type of tax system for the existing welfare state is that it will never happen. It would always be a compromise. The welfare programs might be cut back temporarily (not dissolved) creating the illusion of a trade off but over time they would grow again and it would be like losing ground in a tug of war.
gumercindo, when Antunez is referred to as a liberal democrat by Jay Nordlinger he's talking about it in the context of a totalitarian dictatorship. There's a huge difference between being a liberal democrat in Cuba and being a liberal Democrat in America. I have no problem with classic liberalism. I have a huge problem with the socialistic nanny state liberalism of the current crop of Democrat politicians.
Posted by: Henry Louis Gomez
at August 19, 2008 11:12 AM
Obama has made it clear that he basically doesn't even CARE what effect his tax hikes would have on tax revenue. That's pure insanity.
Tax hikes, especially significant ones, rarely if ever increase tax revenues. But at least with somebody who believes that tax hikes WILL bring in more money, you can see the logic, however faulty, of what they're trying to do -- raise revenues for this or that program or cause.
But what can you say to someone who would hike taxes even though he knows they likely won't raise revenues? Do you just want to upset the chess table, Obama? If one tire on your car goes flat, do you deflate the other three so the first tire doesn't feel bad?
Posted by: Zhangliqun
at August 19, 2008 07:43 PM
You bring up a very intelligent and rational point here, Gomez. All government workers should be hard core Republicans, that way, by voting for "less government," they would eventually vote themselves right out onto the street. Brilliant. I never really considered that logic.
Posted by: Rick
at August 19, 2008 07:44 PM
Dickface, you just made my point for me. Shitheads like you sit around and surf the net all day on the taxpayer's dime and of course you vote for your self-interest rather than the interests of people who pay your salary. Nobody is going to vote their job out of existence, especially those who are sponging off of the rest of us. I thought that that was obvious. Apparently you just realized it.
Posted by: Henry Louis Gomez
at August 19, 2008 10:00 PM
Oh, and fuckhead, I love how you refer to everyone by their last name but are such a pussy that you won't reveal yours. Big fucking tall lanky pussy.
Posted by: Henry Louis Gomez
at August 19, 2008 10:08 PM
Henry - I totally agree it would never work and this is why I never liked the idea because it is easy for leftists to hijack this idea and tack it on to the welfare state. It's the same reason I abhor the idea of a consumption tax to replace the income tax. A month after they make the swap they would bring back the income tax to supplement revenue. Too bad, their good ideas but they would never work.
I have a quibble - I don't like slamming Dems with the term liberal. Thomas Jefferson was a liberal, John Locke was a liberal as was Hayek, Mises and even Carlos Alberto Montaner. Those people are statists, socialists and leftists. They don't like the liberal label so I want to take it back.
Posted by: theCardinal
at August 19, 2008 10:15 PM
oops, meant to say "they're good ideas."
Posted by: theCardinal
at August 19, 2008 10:15 PM
Mockery, Gomez. Look it up, bro.
Taxpayer's dime? My, I don't know what you're talking about.
It's Adjective Day, I see! You say tall, lanky, I say short, pudgy, and I add one: size 46 waist. After skipping lunch, of course.
Your turn, Gomez. Go for it!
Posted by: Rick
at August 20, 2008 10:51 AM
Oh really Rick? You the anonymous holier than thou blogging douchebag isn't afraid of being outed anymore? Then why the spasm when Bob Norman cryptically referred to your employer, which we all know (now, thanks to you) is a government entity?
I may be fat, but short is definitely not a characteristic of mine. I'm 6'2". I understand you are taller but I'm sure I could your old ass if I had to.
Like I said before shouldn't you be off molesting collies or something?
Posted by: Henry Louis Gomez
at August 20, 2008 01:24 PM
You bring up a very intelligent and rational point here, Gomez. All government workers should be hard core Republicans, that way, by voting for "less government," they would eventually vote themselves right out onto the street.
Several strange implications arise from this comment:
a) That said government workers can't get jobs in the private sector (in many, possibly most, cases, you're probably right) and would thus be doomed to starve.
b) That the federal government's primary function is to provide make-work thumb-twiddling jobs for said workers precisely because they can't get work elsewhere. (Or at least create the illusion that they can't work elsewhere so they remain dependent for job security on statist politicians who will expand government the most.)
c) Therefore all government workers should be Democrats or they're being disloyal.
As you might say, I never really considered that logic.
Posted by: Zhangliqun
at August 20, 2008 03:55 PM
I have to say something here about Gov't workers. I started off in the private sector and over the past 5 years have found myself in Gov't employment. Friends questioned whether my Republican values would remain intact once I came in contact with the system.
In a sense they are right I am no longer for limiting government's size and scope...no I want to get rid of the entire F*&^ing thing. Those of you in the private sector think you have a clue about how little some people do or are worth in Gov't work - trust me you are giving them a lot more credit than they deserve. If 1/3 of my co-workers would disappear tomorrow I would venture to say that productivity would increase. There is a guy making 90G a year who checks out Rotten Tomatoes updates all day.
Posted by: theCardinal
at August 20, 2008 10:58 PM
Yo, Gomez...I don't think you heard me. I have no idea what you're talking about. Is that clear enough?
And for someone who is blogging as "Joedilocks" on a parody website, you don't really have the standing to be pointing fingers at anonymous bloggers similar to the ones that blog at babalu, now do you?
You also don't have the nuts to threaten me on the internet, or maybe you do and were just too hysterical to put in a key word to complete that threat and open yourself up to...well...whatever.
Dude, really man. Do you walk around your house with this temper?
Damn.
.
Posted by: Rick
at August 21, 2008 10:42 PM
Zhangliqun:
It wasn't meant to be logical. It was mocking Gomez's idiotic claim that government workers vote Democrat because they would "love to see a huge expansion in the federal government."
By making the equally outrageous claim that they should vote Republican to save their jobs I was mocking Gomez's logic, if you want to call it that.
Of course, Gomez is too dim to grasp and digest all this before exploding with his profanities.
.
