Obama claims to be interested in reducing the tax burden of 101 million middle and lower income families in America. He says that no one making less than $250K will see an increase in their tax burden. He wants to grow the economy from the bottom up. But what exactly are his economic plans?
First, he wants to raise individual tax rates on those making more than $250K to 39.6% (the same as the Clinton rate).
Second, he wants to reduce the tax burden on the middle class and send money in the form of a "rebate" to people who don't even owe any taxes.
Third, he wants to eliminate or sharply raise the cap on FICA (Social Security) taxes. The current cap is around $100K. This is my first point of contention with his plan. He wants to raise the income tax rate by 3.9% on those making over $250K. And he wants to raise the FICA tax (currently the employee and the employer each pay 6.7% of the income) on anyone making over $100K. So, if that is true, he actually DOES want to raise taxes on the middle class.
Anyone making currently $120K would see an increase in taxes (FICA) of $1340 per year. A person making $150K would see an increase in taxes of $3340. A person making $300K would see an increase in taxes of over $15K. And if that same person is also either self employed or happens to run a small business, they will also have the pay the increased EMPLOYER'S side of FICA.
So, Obama, do NOT tell us we will not pay anything more in taxes if we're making less than $250K. That is a big fat lie.
Next, he wants to take that money we pay in increased taxes and GIVE it to the poor. All he's doing here is re-defining government handouts, welfare, through nothing less than wealth re-distribution. He calls it "fairness" or "evening things out" or "sharing the wealth". But who is he to tell me or my boss that they HAVE to share their wealth? Afterall, isn't the business owner the one who puts his ass(ets) on the line by starting a business and working himself/herself to the bones trying to make it work? And Obama wants to FORCE that business owner to SHARE their success with the "less fortunate"....meaning the "less capable or willing to work themselves to the bones or put their entire life savings on the line to make it work"? Frankly, all this amounts to is giving a hungry man a fish instead of teaching him how to fish.
Next he wants me to pay for the 40 million people who do not have health insurance. Frankly, I already do. My rates are as high as they are because the government refuses to do what it should to help lower the COSTS of health care. Forget about trying to get everyone insured. How about lowering the costs of drugs and lower the caps on malpractice suits and eliminating the overabusing powers of the FDA regarding the sales and distributions of pharmaceuticals.
Do that first and then let's see what we can do about getting the rest of the people onto health care.
Then he wants us to actually spend even more money on a failed public school system. The fundamental problem with education is not that there is not enough money being spent on it, but that the money being spent on it is ill-spent. If education really IS important than emulate countries like Japan which has year-round school and encourages rapid advancement through high schools that are almost all magnet schools.
The hole in the Obama and Democratic economic plan is that they want to raise taxes and increase government involvement in economic stimulus. In a recessionary environment this is a literal blueprint for economic disaster.