Tuesday, August 4, 2009

Read My Lips...

How many times did you hear the soundbytes during last year's campaign? Barack Obama was not going to raise taxes on the 95% of Americans making less than $250,000 year. It was repeated ad nauseum. It was the basis of his campaign. Middle class tax breaks. Strange, since the middle class had been receiving tax breaks for the eight years prior. I don't know that many of them knew that.

Additionally, many of the lower income earners were receiving earned income tax credits, meaning they not only paid no income tax but received a payment from the taxpayers. A dangerous and shaky practice that was popular during both the Clinton and Bush administrations. However, many people do not distinguish between FICA deductions and federal withholding deductions in their paychecks. Meaning, they don't realize that they don't pay federal taxes. They just see that big chunk for FICA.

In recent days, word has leaked out and the MSM is even covering the idea that Obama is going to raise taxes on this income bracket. Ofcourse, this is of no surprise to anyone paying attention to these sorts of things. It's also simple math--there aren't enough people in the 5% bracket to tax. You could take every dime from the 5% and you might cover the interest on the ever increasing debt for a few years.

Additionally, this man of smoke and mirrors, is claiming he's already given the middle class a tax cut. Given? As though it's his to give? Folks, this is your money. Your economic freedom.

Even still, that's inaccurate. What Obama really did was adjust the witholding on your taxes. This is not a “cut”. Think this is wrong? Just wait until you file your taxes next year. For example, your $1000 refund you got back from Uncle Sam this year because you overpaid your taxes, will become a $300 tax liability next year because of the witholding change. It's playing with the numbers, more Obama Kabuki theater.

If you are in the middle class, your tax rates did not go down. During the years of 2000-2009, your tax rates did go down. And in 2011, your tax rate will go up after Obama lets the Bush tax rates expire next year. Then, as usual, for every 1% in tax increase, the GDP of the United States will fall by two percent.

1 comment:

  1. That's it...you are on my blogroll.. I want all the folks who visit my blog (a small but quickly growing number) to read all your posts.