Well, this didn’t take long and certainly comes as no surprise. That is especially true if you have paid attention to how President Obama has conducted business during the first six years of his administration. He has acted like a typical liberal. When it doubt, always raise taxes. Never cut spending, never cut waste, always, always raise taxes. And that is exactly what he is planning to attempt in the last two years of his presidency. Do you remember his proposal for free community college for anyone who is willing to work for it? He actually described it as a right. Well, we now know how he plans to pay for the free part. Yep, you guessed it. He wants to raise taxes.
Fox News – President Obama plans to call for billions in tax increases on top earners – including a hike in investment tax rates — in order to fund new tax credits and other measures the White House claims will help the middle class.
The president’s proposals, which also include eliminating a tax break on inheritances, are likely to be cheered by the Democratic Party’s liberal base when they are announced Tuesday night in his State of the Union address. However, the tax increases are all but certain to be non-starters with the new Republican majority on Capitol Hill.
The president’s address — his first to a Republican-led Congress — will call for $320 billion in tax increases over 10 years. Aside from funding new tax credits including a tax credit for working families and expanding the child care tax credit, the White House says that money would go to funding measures to make college more affordable and accessible, including the president’s recently announced plan to make community college free for many students.
The centerpiece of the president’s tax proposal is an increase in the capital gains and dividends rate on couples making more than $500,000 per year to 28 percent, the same level as under President Ronald Reagan. The top capital gains rate has already been raised from 15 percent to 23.8 percent during Obama’s presidency.
As I said in my opening paragraph, we should not be surprised to see this new proposal to raise taxes even more than they already are. Whenever liberals want something new, they always want to pay for it by raising taxes on the “top earners” in America. I am sick of hearing that nonsense.
I believe the simple theme of common sense escapes most, if not all liberals, President Obama among them. They simply can not grasp the concept of the domino effect they start in motion by raising taxes on the people who make the most money in America. Many of these people have worked hard all their lives to accumulate the wealth they have. Raising taxes on their income punishes them for that hard work.
These people then invest the money they have made, thereby helping other businesses grow and prosper. If they have chosen the right investments, they get a return on that investment, ie. a profit. That profit is then taxed and at a higher rate than the original taxes on the investment. Their ability to choose the right investment is thereby punished.
The people in the group classified as the “top earners” then go the way of all human beings and pass from this earth. In their will, they have stipulated how they want their savings to be distributed. Some of them give most of it to charity, but some decide to leave it to their children, to be spent as wisely as possible. The money and property in their estate is then taxed again, which is known as the death tax.
So, the “top earners” in America are taxed until kingdom comes and then some, literally. At every point in their lives, their hard work and ability to save and prosper is punished by taxing them to death and after. And you can be sure he will portray this as a way to help the middle class. He will propose to cut taxes on the middle class and pay for those tax cuts by taxing the rich. He just doesn’t grasp the fact that raising taxes on the rich will, in effect, raise taxes on everyone else. Or maybe he does grasp that fact, but is just intent on selling this as a boon to the middle class and hopes enough Americans fail to catch his drift. Unfortunately, he may have already won that particular war of words.
Here are some of the ways President Obama says he wants to use the money the tax increases will raise.
- A credit of up to $500 for families in which both spouses work. The administration says 24 million couples would benefit from the proposal, which would apply to families with annual income up to $210,000.
- Expanding the child care tax credit to up to $3,000 per child under age 5. The administration says the proposal would help more than 5 million families with the cost of child care.
- Overhauling the education tax system by consolidating six provisions into two, a move that could cut taxes for 8.5 million families.
That all sounds wonderful, if you are of the opinion that money should be taken from one group of Americans, ie. the “top earners”, and given to another group of Americans. When you boil it all down to the basics, however, it is nothing more than class warfare, ie. taking from the rich and giving to the poor or middle class. That is not a concept on which America was founded, but it is a concept that is most certainly in effect in modern America. That is a sad commentary on how far down this path we have gone.