Thursday, October 16, 2008

Joe The Plumber

Barack Obama
I just saw an excellent video that encapsulates very well why I do not support Barack Obama's economic "plan." (Scheme seems a more appropriate term.)

If you want to see most of the conversation between Barack and Joe you can see it HERE.

Neil Cavuto of Fox News interviewed Joe. It was also worth viewing.

Barack Obama is a master of obfuscation. In another video that I saw today Charlie Gibson pointed out that in both cases when the Capital Gains tax was lowered (by Bill Clinton and by George W. Bush) that tax revenue increased. Barack objected that he didn't care about revenue he cared about fairness. Then, of course, he turned around and said that you have to have enough revenue to "pay as you go."

I have a real problem with this Obamanomics. First of all, it is utterly socialist for the government to redistribute wealth. In fact, it really goes beyond socialism - that is more a tenet of communism. The communists "redistributed the wealth" by taking all of the wealth so that everyone (except for those in charge) were dirt poor. Odd thing was - it still wasn't fair. And it deincentivised the workers in the society by removing any reward for their labor.

This is what Barack Obama proposes: The government is all-knowing and all-wise and knows what a "fair wage" is far better than you do. If you (or your business) get above that level of income the government should knock you back down to size and take your "excess" because it can waste money far better than you ever imagined was possible.

As a former small business owner, I can testify that the amount of revenue that a company brings in is in NO WAY a reflection of the income that the owner takes home. My "prosperous" real estate business bled out three times what I took home in expenses. In one good year where I actually managed to make about $10,000 more than the average my taxes knocked me back down to making LESS than I had the year before. Even with revenue over $100,000, my take home pay was not enough to make ends meet, and I do not live an extravagant lifestyle by any means. (I live in a modest home under 900 square feet. I own one vehicle. I don't have any "toys" like boats or 4-wheelers or things like that.)

This will only get worse under Obama's "brilliant" plan.

In fact, Obama's many assurances that he plans to lower taxes for us peasants appear to be prevarication. According to a recent email that I received:

Obama plans to charge 28% Capital Gains Tax on profit from ALL home sales. (How does this affect you? If you sell your home and make a profit, you will pay 28% of your gain on taxes. If you are heading toward retirement and would like to down-size your home or move into a retirement community, 28% of the money you make from your home will go to taxes. This proposal will adversely affect the elderly who are counting on the income from their homes as part of their retirement income.) How well do you think that will help the housing crisis? Funny how he didn't mention that part in his discussion with Joe.

Obama plans to raise the dividend tax from 15% to 39.6% - (How will this affect you? If you have any money invested in stock market, IRA, mutual funds, college funds, life insurance, retirement accounts, or anything that pays or reinvests dividends, you will now be paying nearly 40% of the money earned on taxes if Obama becomes president. The experts predict that 'Higher tax rates on dividends and capital gains would crash the stock market, yet do absolutely nothing to cut the deficit.') Remember what Charlie Gibson said in the debate? Lowering taxes INCREASED tax revenue.

This increased dividend tax will also hurt small business owners who have incorporated under an "S" corporation. They are able to reduce their tax liability by paying themselves dividends instead of income. Yet one more way Obama is planning to pillage the little guy.

Obama also wants to reverse the Bush Administration tax cuts in the income tax. Currently these liabilities are as follows:

Single making 30K - tax $4,500
Single making 50K - tax $12,500
Single making 75K - tax $18,750
Married making 60K- tax $9,000
Married making 75K - tax $18,750
Married making 125K - tax $31,250

Under Obama's plan?

Single making 30K - tax $8,400
Single making 50K - tax $14,000
Single making 75K - tax $23,250
Married making 60K - tax $16,800
Married making 75K - tax $21,000
Married making 125K - tax $38,750
Under Obama, your taxes could almost double!

And Obama wants to bring back the inheritance tax too. This tax was never fair. All of the items in an inheritance have already been taxed throughout an individual's lifetime. Yet the government decided that they could rape the heirs by stealing the estate that a person worked so hard for all their life through taxes. Many families have lost businesses, farms, ranches, and homes that have been in their families for generations because they could not afford the inheritance tax. Those willing their assets to loved ones will only lose them to these taxes. This is basically the government playing God. By this tax they are saying, "I have given you all of these things and so I deserve to take them back."

In addition to these tax increases, Obama plans to penalize people for buying houses that are too large (new government taxes proposed on homes that are more than 2400 square feet.) The government under Obama will suddenly have the right to determine how big a house you should have. He also plans to add new taxes for natural resources consumption (heating gas, water, electricity) because the government should also save the world from "global warming," no doubt. Communism, my friends.

Oh yes, and then there is the increase that Obama plans for the gasoline tax. And plans to tax your retirement accounts. And new taxes to pay for socialized medicine so we can receive the same level of medical care as other third-world countries!!!

If Barack Obama was interested in "fairness" over revenue, then he should be talking about the fair tax plan proposed by Mike Huckabee and others. Why not have a flat tax based on consumption rather than based on income? Think of the reduction of government expense if they didn't have to employ an army of auditors to keep the people of our country afraid to do their taxes. Turn those auditors against the government bureaucracy! Let them find the waste in the government and root out the dead wood. That would account for a huge reduction in revenue needed to run the government.

Wouldn't it be much nicer if no one had to worry about doing taxes? If they were handled whenever you made a new purchase? Those who spend less will pay fewer taxes. Those who spend more will pay more taxes. Makes sense to me. Accountants will be able to keep normal hours throughout the year and focus on other aspects of their business that are more enjoyable and incur less liability than personal and business income taxes do.

Barack Obama's economic/taxation policy will bankrupt America. It will take a shaky economy and send it in an unrecoverable tailspin. I pray to the Lord that he never gets his way.

(The text in italics is taken directly from the email that I received. A couple links were offered as verification for the claims made, but there are about 50 articles between the two links and I have not had time to fully investigate. And both links take you to CNN sources, which I hardly trust as unbiased or trustworthy. Is everything contained in this email true? I don't know. The articles that I have tried to scan seem to be all over the place, just like Obama's answers to every question that is asked him.)

In the end, regardless of whether this data is completely true or not it does not influence my decision one iota. I had already made up my mind before I saw this, and it only serves to reinforce that decision. I may take the time to verify all of this data, but realistically I probably won't. I don't have the time, interest, or patience to deal with a whole lot of political hooey right now. You can check the links that I provided above if you have an inquiring mind.


A friend said...

So you won't be voting Obama in November?? LOL

The scariest thing about his economic scheme...I mean 'plan'... is that the average voter out there has NO CLUE about the basics of economics, free market economy or anything related. All they think is that the 'rich' are getting richer at their expense. They expect the government to fix all their problems - the learned helplessness that abounds out there in America is truly what scares me. It's so far removed from the ideals which underpin our Constitution and history.

Frankly, I've been trying desperately to ignore the election hubbub. My mind has been made up for months on all the major candidates and issues and unless something earth shattering changes in the next couple of weeks, that's how it will stay.

I have so many distractions in my personal life, my church life and my family life at the moment to not want to waste any energy on something I can't influence. My one little vote is the power I can wield. And, thankfully, I don't have any investments to worry about either. Politics and economic instability is such a buzz kill... sigh. I've decided life is too short to expend such energy on the negativity, when I can channel my energy into thoughts that are more positive and rewarding for myself as well as the others who have to put up with living with me.

Oh, and another job well done in your latest poetic musings. I enjoy reading your blog.

Jonathan said...

Um... no.

You are so right about that. There certainly has been some rich getting richer at others' expense, but this whole big re-adjustment has been because of that very thing. This hasn't been the President's fault and, as much as I hate to admit it, it hasn't been Congress' fault. This whole mess was caused by ineptitude and greed by these companies. They got burned. That's a free market society.

And you are also right about this learned helplessness. I love that term. Did you come up with it? It really shows how far so many have fallen from the grit and determination of our ancestors. I pray that we learn it again or we are doomed.

Yep. I haven't watched a single debate. There's no point. Unless one of them decloaks and reveals himself as the Antichrist there will be no changing my mind.

I'm channeling right there with you! My little life has plenty of worries without trying to solve everyone else's. They never listen to wisdom anyway. And I have yet to be asked by one of them for the answers. If I ever get that phone call I'll let you know!

Thanks so much for the encouragement about the poems. I really liked this last one. Thanks for reading, and thanks especially for commenting!

A friend said...

Learned Helplessness? Naw, I probably came across that term in some psycho-babble class during my higher edu-macation.

And definately let me know if you get that phone call where someone actually asks for your solutions. One of my favorite sayings is, 'if I ruled the world...'

Jonathan said...

What a wonderfullllll worrrrlllllddd!

Oooooooooooohhhhh yeaaaaaaaaaaah!