Monday, October 13, 2008

How the Magic Man turns "Income Redistribution" into "Tax Relief"

What Obama calls tax relief (for 95% of working people) is actually no such things. Taxes go on as always (except the go up for top earners - you know, those folks who invest and create jobs for us?), but O! is going to pretend he is giving folks "tax cuts" when what he's really doing is doling out check to folks, many of whom didn't pay any taxes to begin with. The reductions are named "credits", whether or not you actually pay tax. Today, about 38% of us don't pay any income taxes. Under Obama, that rate is going to go up to 44%. From the WSJ:

The total annual expenditures on refundable "tax credits" would rise over the next 10 years by $647 billion to $1.054 trillion, according to the Tax Policy Center. This means that the tax-credit welfare state would soon cost four times actual cash welfare. By redefining such income payments as "tax credits," the Obama campaign also redefines them away as a tax share of GDP. Presto, the federal tax burden looks much smaller than it really is.

That 44% are gonna get checks from the government the other 56% of us.