President Obama and the Liberal Media keep expounding on the notion that 95% of Americans will be getting a tax break (actually, 48% are getting a tax break, and 47% are getting welfare). Only individuals earning more than $250,000$200,000 each year will pay more taxes under the Obama Administration. So why are so many “middle class rednecks” (as more than one talking head has called the Tea Partiers) upset?
Ignoring the fact that the tax rates could be raised on the middle class at any time or that the minimum has already been lowered, there is another reason to be upset: We’ll eventually have to pay for all of this spending. Right now, the Nation is racking up massive deficits, adding to our National Debt at rates never before seen in history. This is dangerous for many reasons, which have been covered in detail on Redstate in the past. Mentioning just a few: Reduced value of the dollar leading to inflation; the danger that our credit will be in question and no one will loan us money; the removal of capital from our capitalist system, slowing economic growth.
Forget all that. This is actually a message about taxes.
Remember that part earlier about how only those who earn more than $200,000 per year will pay more taxes? It’s a lie. The President and his advisors know it’s a lie. Why? Because the majority of those earning more than $200,000 per year are small business owners reporting their business taxes on their personal tax returns. Add to this the increased taxes for business owners, corporate executives and board members.
These increased taxes aren’t simply going to be absorbed by the businesses or the business owners and managers. They will be passed on to all of us in the form of increased prices or reductions in quality or services.
There is more. One of President Obama’s campaign promises was to raise the Capital Gains tax, which is the tax levied upon income from investments such as corporate stock. For now, it is limited to that same 5% of income earners. Eventually, the rate is likely to be flattened, perhaps not during the President’s first four years, but liberalism can’t stand the accumulation of wealth. Such a move would then affect almost every person with a 401(k), 403(b), IRA or any other retirement account. Obama has backtracked on this promise due to the recession, but we can expect that asif the economy recovers this will be back on the table.
The President has tried to play it both ways on Corporate taxes, calling for coporate rate reductions while demonizing tax loopholes for oil, energy and foreign profits. While I am no fan of loopholes and tax code complexity, the net effect on energy and oil would be a tax increase on those industries. Once again, this tax increase will be passed on to consumers in the form of higher prices for electricity and gasoline.
So while the explicit tax rates will go up for only the top income earners and certain politically unpopular industries, the actual taxes being paid by all of us is going up. Over time, tax rates will be forced up in order to pay for our excessive spending. Our retirement is under attack.
Yes, we’re all going to pay. Every last one of us.