Posted by
Brandon O'Neal Wright on Wednesday, January 14, 2009 1:05:38 PM
The mainstream media gave him a free pass, the American citizens gave him a free pass and the voters gave him a free pass. That would have been fine if Barack Obama's plans and desires were not so muddy. He said that he was only going to increase the taxes of the rich while eliminating the taxes of anyone living at the poverty level. It sounded too good to be true. And, like mom and dad always said, if it sounds too good to be true it probably is! You cannot eliminate the tax burden of any segment of the population. It is impossible. Let me explain. Federal income taxes are not the only tax burden that the average American faces. Our tax burden is actually much higher than the bottom line of your income tax return. Much higher, indeed. Everytime that you purchase an item, from a pack of cigarettes to a new car, there are embedded "corporate" taxes that you must pay on top of the sales tax that you are hit with. The phrase "corporate taxes" is very misleading. A business or corporation pay no taxes. You pay the taxes for them. The business simply collects the "corporate tax" from the consumer and passes them on the Washington. Dr Dale Jorgenson, the Chairman of the Harvard Economics Department, conducted a study in which he came to the conclusion that the consumer pays an estimated 22 percent embedded tax on everything that they buy. That 22 percent covers the tax burden on every company involved in the manufacture of that product. Lets take a pair of jeans as an example. The company that manufactures the jeans must first purchase their textiles from a textile company. Embedded in the price of the textiles is the tax burden of the textile manufacturer. That company has to pay a tax on their payroll, a portion of every employees social security and medicare taxes and a tax on the products that they buy to manufacture the textile. They then embed these taxes into the price of the textile so that they can mantain their profit margin on the textile. So, when the jean company purchases that textile, they are paying approximately 22 percent more for the textile, in the form of embeded taxes. That said, the jean company is not simply going to pay that 22 percent and not pass it on down the line. That would be bad for business. Instead, they pass that 22 percent right on down the line. Where is that end of the line? The consumer. That 22 percent that started at the textile manufacturer ends up coming out of your wallet. The consumer gets stuck with the bill. You pay more than sales taxes everytime you push a cart through a checkout line. The sad truth of that statement? Most people do not even realize that they do! Now, back to Barack Obama's free ride to the White House. He made the illusion that only the rich and the corporations would pay more in taxes. A few honest questions by the mainstream media would have brought to light the fact that an increase in taxes on corporations means an increase in taxes on the consumer. Unless only rich people buy things in this country, which we know to be a falsehood, every single American will see an increase in their taxes. Rich and poor alike. Since, however, Americans have been trained to view their tax obligations only as the bottom line of their tax returns, most will never realize what the anointed one is doing to them. He may well lower their income tax burden but will raise their taxes in other areas to compensate for their savings! He will lower their taxes while raising their taxes at the same time. Another example of Barack's dishonest lowering of taxes on the poor is the fact that he plans to raise the taxes on cigarettes by 61 cents a pack. Back in the early 1900s, this may well have fit into the "tax the rich" philosophy that Barack was and still is touting. Today, however, the lower income individuals actually smoke more than the higher income folks. The quote that came right out of Barack Obama's mouth concerning this increase in the cigarette tax sums up everything. "Everybody's going to have to give," he siad. Finally, the truth straight out of the anointed one's mouth. Too bad it came after the election. The only change I have noticed so far is a "change" in Barack Obama's rhetoric. Stay tuned everyone, there will surely be more truths and "changes" in rhetoric to come!