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Monday, October 4, 2010

Does Class Warfare Prevent Barack Obama and Hillary Clinton From Understanding Taxes?

During the April 16th debate between Barack Obama and Hillary Clinton, the young senator said repeatedly that he would not raise taxes on middle class earners, those he described as earning between $200,000 and $250,000 per year.

He said the following: "I not only have pledged not to raise their taxes, I've been the first candidate in this race to specifically say I would cut their taxes."

Later, he said he's open to raising the current capital gains tax rate from 15% to 28%.
This alone would nearly double that rate and raise taxes on all 100 million workers who own stock, mostly through owning 401 K'S.

Moderator Charlie Gibson asked Senator Obama why he wants to "increase the capital gains tax when history shows that a higher rate brings in less revenue."

Senator Obama responded by citing rich hedge-fund managers. He then declared that "raising the capital gains tax is "necessary to make sure . . . that our tax system is fair and that we are able to finance health care for Americans who currently don't have it and that we're able to invest in our infrastructure and invest in our schools. And you can't do that for free."

No senator, you can't do that for free. In fact it would cost a fortune. So why propose something that gets you further away from it?

In 2005, 47% of all tax returns reporting capital gains were from households with incomes below $50,000, and 79% came from households with incomes below $100,000.

When Mr. Gibson pressed further about the self-defeating nature of this idea, Senator Obama deflected it to John McCain and how Senator McCain's proposals would in effect drive us further into the terrible, ruinous, tragic and hopeless economy which according to at least one Democratic spokesman, obviously unconcerned with childlike exaggeration, declared that the Bush economy "has made us the most hopeless Americans in US history."

Senator Clinton Also Receptive To Raising Capital Gains Tax Rate

Hillary Clinton said that she "was open to hiking the capital gains tax rate."
However, she too had earlier stated emphatically during Wednesday's debate she would not "raise a single tax on middle-class Americans, people making less than $250,000 a year."

Senator Obama Causes Further Confusion

Senator Obama also wants to lift the cap on wages subject to the payroll tax. That cap was $97,500 in 2007 and is $102,000 this year.

That would raise the maximum payment to $7800 on a tax that had a maximum payment of $60 a year, in its initial year.

It became law in 1935, the argument in favor was that it would always be just a small affordable amount that everyone could afford in order to have a safety net upon retirement.

Opponents in 1935 argued that it would become just another way to fund more programs, and like all government programs would grow incessantly. It has done exactly that.

Congress has already stolen just under $2 trillion dollars from that fund and spent it on old and new programs. It has replaced that $2 trillion dollars with worthless paper IOU'S and put that collection of worthless paper in the TRUST FUND.

Democratic congressmen constantly deceive taxpayers by essentially describing those IOU'S as cash. This allows them to say that social security is solvent till 2041, instead of admitting that it goes from a yearly surplus to a yearly deficit in 2017.

That deficit will soar without drastic reductions in government spending.

Naturally those who contribute little or nothing to FICA are all in favor of raising FICA taxes on hard working Americans. Yes they'll cheer Barack on, hoping that some of the higher payments from others, will come their way.

Barack supposedly represents sweeping change!

What that change is all about is a change to a much higher rate of redistribution than that which presently exists.

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