Monday, January 25, 2010

Obama: Framing Wealth Redistribution as Tax Cuts

In one week, Obama has become a tax cut and deficit hawk. Of course, Obama does it in his unique style of double speak. If you listen to the media only, you will hear Obama and his underlings speak about controlling the deficit, creating jobs, and now tax cuts. But in Obama’s world, those initiatives take on new meaning. Controlling the deficit is how he leverages his failed health care plan because he falsely claims that passing it will control the deficit. The problem for Obama here is that no matter who he sends out to sell it, the American People have wisened up. They know that health care will be a taking a bigger shovel to the deficit issue. You don’t dig a deeper hole in the hope of getting out. You can’t create a job through the government. Obama only knows government action. There is no amount of government job creation that will end the recession. Take money from the private sector and redistribute it to a government employee merely means less money in the private sector for sustained job growth.
The biggest sham, though, is the one that I think people will not be able to easily see through. Obama wants to “cut” taxes on the middle class. First of all, the “middle class” don’t pay much in taxes at all. Obama knows this. In fact, we are now at a point where over 50% of Americans actually pay little to no income taxes. Obama merely wants to increase the number of people that have no skin in the funding of government. He is very shrewdly using the child tax credit as his tool, offering to double its current $1,000 per child level. Why use this tax credit. Quite simply it is his form of economic wealth redistribution. Because the child tax credit is a rebateable tax credit, even if your tax responsibility is zero, you still get money if you have kids. If I have 6 kids and my tax responsibility is $1,000. When I file my taxes now, not only would I get the $1k back, I will get an additional 5K back from the rebate. How can that be anything different than economic redistribution. Under Obama’s plan, I would get an additional 11k back, cash. So If I make 60k after FICA and insurance and such, the rebate would be equal to 1/6 of my income. Is this what America is really about. Don’t let Obama use this tactic.


Kansas Bob said...

Doubt that we will ever see a fair or flat tax so taxation will always be about wealth distribution.. but I am glad that you want to pay more taxes.

jrchaard said...

I would vote to repeal what I alredy get. Nobody should get more money than they pay in.

Kansas Bob said...

Just wait a few years.. your deductions will one day evaporate.