Sunday, October 23, 2011

Just what is behind Obama's "Tax the Wealthy" plan?

Just what is behind Obama's "Tax the Wealthy" plan? First and foremost it is a re-election campaign. Obama was elected president by blaming George W.Bush for everything wrong in the world and this election is no different Obama needs an enemy he can demonize, preferably one who can't fight back. Which is why the rich are such an easy target. It's easy to make people who don't have much believe that an Evil "Other" is the source of their plight. It worked for the Nazi's it worked for Stalin in the Ukraine, It worked for Mao and his Cultural Revolution, It worked for Pol Pot and his Khmer Rouge, Rwanda, Serbia... Don't get me wrong Obama's plan is not the beginning of a Genocide it's just a means to an end. In this case Re-Election. But it has to be more than that right? It can't be just to get elected, There must be some policy imitative behind it right? Correct! It's about separating Americans from their money. Not just "Rich" Americans but ALL Americans. In the 2008 campaign and earlier Obama stated he wanted Americans to pay more for energy, More in taxes for wealth transfer programs, More for autos, etc etc. And by using taxation and legislation like Cap & Trade he could achieve those goals. The dirty little secret about raising Taxes is that there is no amount you could raise taxes and balance the budget. The game is rigged. Baseline Budgeting assures that every year expenditures increase regardless of need. Even if your tax increases generate enough to pay for this year, next year you will need more. Your Economy must grow at a Voracious pace but it can't because you keep siphoning much need capital out of the economy for government. (something Western Europe has experienced for 20 years) I remember back in the early 2000's the French were dancing in the streets because they had achieved ZERO GDP growth! Zero was a big milestone because for the previous 12 or 13 years they had been in NEGATIVE GDP growth. Even sadder than the notion of taxing ourselves into prosperity is the idea that we can just "Tax the Rich" The sad reality is if you took every penny the top 1% earned next year you could cover about 25% of what we borrowed this year. Increasing taxes on the top 1% from 35% to 39% gets you something like 90 billion a year. Which works out to about 5.4% of what we borrowed this year. I know what you're saying, Obama has to know this so what is his plan? His plan is the other Dirty Little Secret. Raise EVERYONE'S taxes. It's the game! When Congress sets itself to raising taxes on day one they realize that no amount of accounting tricks or gimmicks will get the CBO to state that 90 Billion is really 1.65 Trillion. And the CBO will fall for anything, They will let you count borrowed money as revenue, they will let you count money twice, they will even let you count revenue from taxes based on unrealistic or even fantasy GDP growth estimates. None of this will get 5.4% looking even close to 100% So what will congress do? Raise Everybody's Taxes! Congress has already decided to do the unpopular thing and raise taxes. This decision alone has already assured that some congress men and women won't be back next term. Congress has decided they need the icky tasting medicine, they might as well swallow it. So they start moving down the tax brackets and usually they decide to stop about one tax bracket above your baby sitter. It's still not enough money but with some tricks and gimmicks and promises to cut "Next Year" and when all is said and done "Taxing the Rich" has elevated the kid who washes dishes at the IHOP to "wealthy" status, Sans all that troublesome privilege and prestige that goes along with being wealthy, Besides Kid, the speeding tickets you would get in your Bugatti Veyron would bleed your bank acct. dry.

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