Obama's Terrifying Tax Trick
A common theme since the Occupy Wall Street pageants
commenced last year has been that Democrats and more specifically the
President somehow represent the 99% and that Republicans only support
the 1 %. This misguided thinking is aided and abetted by the
Administration and mainstream media which continuously and purposely try
to divert attention from the real issues that are Nation is suffering from (issues where President Obama’s track record is weak at best).
The President would have Americans focus on themes that
have no impact on the economic wellbeing of middle and lower class
families. Sideshow issues such as the “war on women”, “gay marriage” ,
“temporary piece of tape on a 30 year old immigration crisis and Mitt
Romney’s dog come to mind (although this list is significantly longer).
Masterfully, the 99% vs. the 1% storyline has been extended to the current discussion over a very important issue: Taxes.
The previously negotiated tax increases or the end of
tax reduction period is set to take place on “Taxmageddon”, January 1st,
2013. It will crush our already fragile economy and seriously impact
lower and middle class families. There will roughly be 500 billion
dollars in annual tax increases. The media has painted this situation as
a Robin Hood scenario, whereby only the idle rich get soaked, but let’s
look at the facts. What actually happens when the clock strikes
midnight on January 1?
First, we have the expiration of what are called “the
Bush” tax cuts. Then factor in Obama Care which is set to implement the
first 5 of its 18 new taxes in 2013. Heritage Foundation’s Curtis Dubay
reports that American households (the 99%) can expect to face an
average tax increase of $3,800 and that 70 percent of Taxmageddon’s
impact will fall directly on low-income and middle-income families,
leaving their pocket books $346 billion lighter.
According to the American Enterprise Institute’s James
Pethokoukis, tax increases from 1980-93 add up to 3.3% of GDP in
thirteen years vs. 3.5% of the GDP just for just one year in 2013.
Federal Reserve Chairman, Ben Bernanke came out
recently and spoke about the brazen amount of tax hikes that would kill
the American economy saying; “under current law, on January 1st, 2013
there’s going to be a massive fiscal cliff of large spending cuts and
tax increases.” Those are simply the facts. Here’s a glimpse at the
increases that are scheduled to kick in for the five different tax
brackets according to U.S News:
The 10 percent bracket rises to 15 percent (the highest % increase)
The 25 percent bracket rises to 28 percent
The 28 percent bracket rises to 31 percent
The 33 percent bracket rises to 36 percent
The 35 percent bracket rises to 39.6 percent*
(* rate at which 2/3 of small businesses profits are taxed)
So, while the Obama Administration paints this tax
increase as something that only affects the 1% - notice that it affects
the lower and middle wage earners significantly more, with a 50% rise in
taxation in the lowest tax bracket. Distracting the public with class
warfare rhetoric or other smoke and mirror tactics to achieve
re-election is disingenuous, selfish and lacks leadership and
integrity.
What would really help lower level wages earners is to
have more and better available JOBS and a thriving economy. Remember
this, according to the Congressional Budget Office the U6 number (the unemployment figure which includes
people who have supposedly STOPPED looking for work) tells us actual
unemployment was 14.8% in May. Under President Obama we have seen the
largest actual unemployment numbers since the U6 figure was established
in 1990 and unemployment at levels similar to the Great Depression. The
economy needs confidence and stability; we are in the midst of a crisis
of economic confidence and instability.
Some simple things to restore confidence now are to
extend the “Bush” Tax Cuts, put in place an actual budget (which
Congress has put off for over 3 years), cut government regulations which
are stifling small business and focus on creating pro-business, job
creation environment. Take the government’s foot off the neck of small
business and help get that that U6 number down and get America back to
work!.
Keep your eyes on the ball and don’t let this Obama
dazzle us with his sleight of hand tricks and remember the countdown is
on for January 1st, 2013.... TAXAPALOOZA!!
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