True patriotism is not paying more in taxes
The Obama tax plan will hurt, not help, economy
Bennett Rawicki
Issue date: 9/23/08 Section: Commentary
Who wants to give the government more of their paycheck? According to Vice Presidential candidate Joe Biden, it is the "patriotic" thing to do. In defending Barack Obama's tax plan, an effort to raise taxes on all those who earn over $250,000 per year, Biden implored the public, "It's time to be patriotic...time to jump in, time to help get America out of the rut." It is comic that he considers Americans will want to give more money to a Congress that only has an approval rating of 17 percent, but what Biden really needs to realize is that the extra taxes in Obama's plan will not help America but will actually clog the door to future economic growth and jobs.
The debate over tax policy has already been won, but Democrats continue to fight for redistribution of wealth. In the short run it may make the less wealthy vote for them, but, in effect, taxes actually cut off job opportunities and end up costing those same middle class workers pay raises and better employment.
In any investment, such as starting a business or expanding and adding new workers, the person with money decides to risk it because under his calculations he can make a profit. If taxes increase, that expected profit will decrease and the investor will have to reconsider or scrap plans for a new business. The Democrats reject this outcome and think that what is needed instead is more money transferred to the less wealthy so that spending will increase and boost the economy. This debate is not new and has been fought in the real world, as both sides have had control of different areas of the country for decades now to test their theories. Democrats may deny the theoretical but practice shows: "It costs taxpayers far less to succeed than to fail."
The top three states over the past ten years in job and income growth are Texas, Florida and Arizona. These are Republican-run states with low taxes and a low minimum wage. Texas and Florida do not even have a state income tax at all. The three worst states in job and income growth are Democrat-run states: Michigan, Ohio and Illinois. These states have higher taxes, higher minimum wage and rules that promote union control of businesses. The result is that over the past ten years those Democratic states have lost 502,000 jobs and those who kept their jobs are only making $3,500 more than ten years ago. The three Republican states mentioned have gained 2.7 million new jobs, and workers on average make $6,500 more. Barack Obama will make America like the state of Illinois, and no one can afford that, investors or workers.
Obama plans to raise income and social security taxes on those who make over $250,000. But those people are not just Bill Gates; actually, 75 percent of them are small businesses! Those small businesses under attack by Obama in his tax plan provide three-fourths of all jobs in America. As one researcher noted, "Workers ultimately pay for higher taxes in lower wages and fewer jobs." Patriotism is supporting the American economy, not following decades of failed tax policy.
The debate over tax policy has already been won, but Democrats continue to fight for redistribution of wealth. In the short run it may make the less wealthy vote for them, but, in effect, taxes actually cut off job opportunities and end up costing those same middle class workers pay raises and better employment.
In any investment, such as starting a business or expanding and adding new workers, the person with money decides to risk it because under his calculations he can make a profit. If taxes increase, that expected profit will decrease and the investor will have to reconsider or scrap plans for a new business. The Democrats reject this outcome and think that what is needed instead is more money transferred to the less wealthy so that spending will increase and boost the economy. This debate is not new and has been fought in the real world, as both sides have had control of different areas of the country for decades now to test their theories. Democrats may deny the theoretical but practice shows: "It costs taxpayers far less to succeed than to fail."
The top three states over the past ten years in job and income growth are Texas, Florida and Arizona. These are Republican-run states with low taxes and a low minimum wage. Texas and Florida do not even have a state income tax at all. The three worst states in job and income growth are Democrat-run states: Michigan, Ohio and Illinois. These states have higher taxes, higher minimum wage and rules that promote union control of businesses. The result is that over the past ten years those Democratic states have lost 502,000 jobs and those who kept their jobs are only making $3,500 more than ten years ago. The three Republican states mentioned have gained 2.7 million new jobs, and workers on average make $6,500 more. Barack Obama will make America like the state of Illinois, and no one can afford that, investors or workers.
Obama plans to raise income and social security taxes on those who make over $250,000. But those people are not just Bill Gates; actually, 75 percent of them are small businesses! Those small businesses under attack by Obama in his tax plan provide three-fourths of all jobs in America. As one researcher noted, "Workers ultimately pay for higher taxes in lower wages and fewer jobs." Patriotism is supporting the American economy, not following decades of failed tax policy.
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NoBody
posted 9/24/08 @ 6:02 PM CST
Businesses only hire people if more people are buying their products or services. The Bush tax cuts for corporations did not create more jobs. In the last 8yrs more jobs have been lost and sent overseas. (Continued…)
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