Okay, so…I know those of you that are convinced that if you tax “rich” people, then tax revenues will increase probably will not agree with what I have to say about taxes. But if you’re on that side of the issue, maybe if you glance at my issues with increasing taxes during a slow economy maybe you can at least understand (if not agree with) my position.
Raising Capital Gains Taxes
Obama wants to raise this tax from the current 15% to 25%. For us “ordinary” (gag) Americans, this means whenever we sell stock – or sell our houses – we will have to give 25% of what we make to the government. If you plan on selling your house, I would do it soon so you are not hit with almost double the cost of the sale. With the current housing crisis, I don’t understand why someone who wants to be president would want to take away almost twice of what little these people might eke out of their small investment just to get by.
Raising The Social Security Cap
I actually agree with this one. But when Obama says he will not raise taxes on retired people, he is lying. Any retired person that makes more than $50,000 will have to pay Social Security withholding on anything they make over that amount. Make $60,000 on your retirement withdrawals from your 401K? Be prepared to pay Social Security taxes on all of it.
Raising Taxes on Big Oil
I know the dems are tired of hearing this, but it’s true. Jimmy Carter tried a windfall tax on big oil in the 70s, and it resulted in major gas shortages, hours long lines, and steep increases in the price of gas as the oil companies passed the “windfall” taxes on to the consumer. I don’t understand how anyone can think that raising taxes on any type of business won’t in turn raise the cost of whatever good or service that company provides. For me, it defies logic. I try to remember that the government already makes more than three times the amount the oil companies do on each and every gallon of gas we pump into our tanks. Think about that and then think about who’s the bad guy when it comes to the price of gas.
Let The Suspension of the Alternative Minimum Tax Expire
I have to read more about this, but from what I understand this is an additional tax that some people might have to pay above and beyond their normal rate. The tax was passed decades ago when legislators wanted to make sure”rich” people were paying their fair share. But what was considered “rich” back then now solidly will hit the middle class of today. Luckily, the suspension of this tax seems to be holding…for now.
Raising Corporate Taxes
Okay…um…currently America has the second highest corporate tax rate in the entire world. That means we are the second most expensive country in which to build a business and sell goods. This high tax has caused many companies to go to other countries to build their businesses and produce goods. I think Ireland has a 10 or 11 percent corporate tax rate. I saw a lot of businesses being built when I visited there a few years ago. Ireland is a beautiful country. Its corporate tax rate makes it even more appealing to businesses that are trying to succeed without the heavy burden of our tax rate. It seems that lowering this tax rate rather than raising it would be the most logical way to keep jobs here. But maybe that’s just me.
Raising The Death Tax
Obama can nuance this all he wants. But he has said he wants to raise the death tax rate to 46%. So…let me get this straight. We pay taxes on what we make while we are alive. Then we pay taxes on any money we make from investing the already taxed income when we cash in stocks. We would also pay 25% on any money we make from selling our houses. And on top of all those taxes, Obama wants to take an additional 46% of whatever is left once we die? What the hell? Oh, I know…..he says it’s only the “rich” he wants to do this to. But I don’t care how much anyone makes….it’s not right to take almost half of what they have left from their dependents once they are gone. It is NOT right.
I realize there are $50 billion worth of “helps” Obama includes in his tax strategy to “help those that need it”. But to me, when you drill down and realize just how much these higher taxes are going to cost when it comes to everyday living, keeping jobs in America, and a sense of what’s fair it doesn’t seem like any of this will truly help anyone once the full impact of policies like these are felt by each and every one of us.
Oh, sure…some will say “the rich can afford it”. Yeah, right. The “rich”. I quit working during the Clinton years once we sat down and figured out that 90% of every dollar I was making was going straight to taxes. So we removed my full income from the tax base, as many others will if Obama and a democratic congress have their way.
Votes have consequences. I’m sure many feel the Bush vote had too many especially when it comes to Iraq. But since the economy is the number one issue on our minds, we have to all think about what the long-term consequences – to ALL our pocketbooks – will be if the country continues to veer left and follow the philosophy of “from each according to his ability and to each according to his need”. The needy always pay with policies like these in the end. Much more than they think they will when they vote people into office that promise to “get” them more of the money other people have worked so hard to earn for their families.
According to data from the general accounting office, raising taxes has ALWAYS brought in less tax revenue and lowering taxes has always stimulated the economy and brought in more tax money. Something to think about. Numbers don’t lie. I’d post links but if you “don’t believe that” (even though it is fact) then you won’t bother to follow it anyway.
So there’s my take on taxes. You might not agree, but if you took the time to read then I think it’s always a good thing to understand the other side no matter what your position.