Friday, October 10, 2008

Why Obama's tax relief isn't any such thing

One of Obama's biggest campaign promises is that he is going to cut taxes for 95% of Americans. Laying aside the fact that almost 40% of the population doesn't even pay taxes, only a fool would believe this claim. His $1000 checks he's going to send to those who don't pay taxes (income redistribution) is a patent attempt to simply buy votes. With OUR money. But, let's get to the issue of how he's going to offset these tax cuts. Real Clear Politics:

Then we come to the Team Obama fantasy that the Obama plan would cut taxes for most Americans. Yes, Mr. Obama says he will cut rates for lower-income Americans, but will more than offset that by raising taxes on dividends, capital gains, higher incomes, corporations, estates, and payrolls. But most Americans own stock, either directly or through their IRA, 401k or union pensions. Dividend and capital gains taxes will take money from all those. Those Americans on Main Street who own a house or have other investments will be punished by a capital gains tax increase.

Businesses and corporations do not pay taxes; we do. Businesses don't have huge piles of money sitting in the closet that they simply turn over to government when taxes increase. For every dollar that you increase taxes on a business, they simply increase their prices by a dollar. Who then pays the tax? We do. We do, when the product that we bought last week for $20 suddenly costs $21.

So, anyone with the foresight to invest in their own future is going to be taxed. And, of course, anyone who buys stuff. Those who's taxes will be unchanged? I'm thinking the homeless are gonna make out pretty well under Obama's plan. They usually don't buy much and their investements are usually rather limited.

Another claim that has stuck in my craw is Obama's promise to cut government. Anyone know what the heck he is going to cut? I'm going to have to research that one, because a quick search comes up with nothing more than the standard "make government more efficient" pablum.