Wednesday, November 17, 2010

Avoid the Obama Tax Increase

The "lame duck" congress needs to listen to history, and make the Bush tax cuts permanent.

Everyone who pays taxes received a tax reduction from the Bush tax cuts. It is worth remembering that only 53% of income earners actually pay taxes. The other 47% either have no tax liability, or are net tax recipients. Tax credits DO NOT equal tax cuts. Tax "credits" are conditional, and many of these are "refundable."

As I said in November 2008, then-President-elect Obama could turn around the then-"inherited" economy by eliminating corporate and capital gains taxes, because only individuals pay taxes in the first place. If that had been done, the effect of eliminating the Bush tax cuts would have been minimal at best. As it stands, the lowest income bracket will have a tax increase of 50%.

Increasing taxes, fewer jobs, inflation, increasing cost of goods and transportation , expensive energy, increasing bureaucracy, increasing welfare state, and less freedom. Not to mention the subversion and perversion of the Constitution. What's not to love?

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