Wednesday, October 29, 2008

HOPE-ON, Day 10 – Will you be allowed to Keep the Change?



MAN: Senator Obama, you have promised that you will cut taxes for 90% of America. But you’ve also voted to allow the Bush tax cuts to expire. So that means our income taxes will actually go up.

Did you think this was going to get past us?

So let’s make this real simple: if you allow the Bush tax cuts to expire, how many taxpayers would pay more taxes?

MAN: This is not good change.

ANNOUNCER: What happens when we elect a President who raises our taxes? Please, America, let’s never find out.

No, you won't get to keep the change.

Well, what happens when we elect a President and Congress pledged to raise taxes?

Recession. And if they raise them enough, toss in some protectionist legislation, and near compulsory unionization for good measure, depression.

And what exactly does “share the wealth” mean? It means that some bureaucrat whispers to some politician in Washington how much of the income of your work you’ll be allowed to keep. Disagree? Well, sharing under the Obama plan means that the IRS and courts will have you tossed in chokey. Question The One? At minimum, some minor state official will be trolling through your records looking for dirt.

On the specifics of The One’s tax plan, Steven Malanga in Real Clear Markets notes that the primary question is where does wealth originate? With the State, or with the People? It’s the people. Free citizens and free markets produce wealth. Governments take a portion of that wealth in taxes, for some legitimate purposes (police, firefighters, national defense, courts), and some illegitimate (bridges to nowhere, Fannie Mae / Freddie Mac, ACORN, etc.), but they don’t create wealth. Wealth must be created in order to be taxed.

Ahhh, you say, but we can tax the rich to pay for benefits to the poor!

Well, who’s rich? Obama has been claiming that his tax proposals only hit those making over $250,000. But wait! As Jim Geraghty notes, Paul Krugman, the noted Nobel Laureate and Right Wing Extremist columnist for the NT Times says that The One’s real proposal starts hitting at about $182k per year. Keep looking for this number to continue to move downward. Tigerhawk and the New York Post now note that Joe Biden has now moved the bidding down to $150K. If they win on Nov. 4, look for a number close to $50K on Nov. 5.

Also, keep in mind that the truly rich have the luxury of employing the best tax lawyers available to keep their taxes down. They can structure their income streams to avoid The One’s grasp. Aspiring middle class types like Joe the Plumber? Forget about it.

Cesar Conda lays out the gory details in National Review Online. The essence of the Obama the Redistributor’s plan hits directly at the twin engines of economic growth and prosperity – capital formation and liquidity, and individual incentives.

And the much publicized Obama Middle Class Tax Cuts? Transfer payments designed specifically not to allow you to keep more of what you’ve earned or saved, but to make you dependent on government for checks.

Make too much? Say get a smidgen of a raise to make over $40,000? You could lose $0.40 on the dollar of tax credits that The One has condescended to grant.

The Heritage Foundation provides a handy side by side comparison of the McCain and Obama tax plans here.

Change you can believe in? Heck, these guys are out to take the change from your sofa cushions.