Posted by
Brandon O'Neal Wright on Monday, December 22, 2008 6:04:35 PM
The historic time is almost here. We are soon going to witness the swearing in of Barack Obama as the forty fourth President of the United States. Right behind the historic swearing in will come another historic moment in the history of the United States. Barack Obama will preside over one of the largest increases in taxes in our nations history. He will try to package these tax increases as "tax breaks" for the middle class. Let's examine how he comes up with this historic rise in taxes.
1. Barack Obama is going to increase the top tax bracket from 35% to at least 39.6%. The top tax bracket is comprised of those who make 200,000 or more.
2. Impose the social security tax on all of your income. Currently, you only have to pay social security taxes on the first 101,999 dollars.
3. Raise the capital gains tax from 15% to 28%. Man, this plan will really help the economy and convince people to invest in the stock market.
4. Double the tax rate on dividends from 15% to 30%. Any dividends paid to you for making wise investments will be gobbled up by Barack. Sesame Street should portray Obama as a new character called the Money Monster. YUMYUMYUMYUM
Negative consequences from these tax hikes are;
1. By raising the tax rate on the highest earners in the country, we will be promoting and "paying" people more money to remain in the middle class. This will lead to a decrease in productivity, a feeling of contentedness that we currently do not have and will help to perpetuate class warfare. All Americans want to move up the corporate ladder so that they can make life easier for their kids and grand-kids. If the government takes almost forty percent of your earnings, what is the incentive to move up?
2. By subjecting all income to the social security tax, Barack Obama is trying to pay back the trillions of dollars that the government has borrowed from the social security trust fund. This would be one of the ways that Barack will raise our taxes, without actually raising the tax rate. We will have to pay the social security tax on all of the money we make., There will be no cutoff point. We love you Barack!
3. By raising the capital gains tax to 28%, Barack will be adding fuel to the fire that is our economic system. This will cause a sell-off on walstreet as well as a sell-off in the housing market. People will sell at bargain prices to keep from paying the government 28% on all of their capital gains. This will also prevent people from investing in the stock market and real estate or will promote investments in foreign systems. Why would anybody want to invest their money in the United States system if they could do it in another country and avoid shelling out 28% of their earnings? This will make walstreet plunge even further!
All of these tax raises will be packaged as tax cuts because Barack will do a couple of things to fool Americans. He will extend some of George W. Bush's tax cuts. This would make people in the middle class believe that they are getting a tax cut when, in reality, their tax rates would stay the same as they are now. He will also try to repeal the alternative minimum tax. The AMT was designed to make sure that wealthy people could not hide behind tax break loopholes. The problem is that the AMT was enacted in 1969. Incomes have rose drastically since then, but the amount you make in order to have to pay the AMT has not changed. In 1969, the AMT affected 155 people. Today, the tax would affect 23 million people. Thanks to George W. Bush, the tax has not had to be paid by Americans because he has pushed back it's effective date annually. The problem is, the tax is still on the books. When Barack Obama repeals this tax, he will trumpet it as a tax break for the middle class, even though the middle class has never paid this tax! It is an illusion of tax breaks, people, don't let him fool you!!