Earlier this month, I discussed the leftist narrative that the GOP is intentionally sabotaging the economy in order to win the 2012 election. Of course, that claim is nothing more than typical leftist projection, as destroying the economy is something that they have raised to a science. But, of course, they can’t let a little reality interfere with their narrative. So, they plod on, hoping that the uninformed swallow the lies, and vote accordingly.
That entire scenario took on a new light with the debt limit debate. For background, here are some excerpts from the WSJ…
So the fondest Washington hopes for a grand debt-limit deal have broken down over taxes. House Speaker John Boehner said late Saturday that he couldn’t move ahead with a $4 trillion deal because President Obama was insisting on a $1 trillion tax increase, and the White House quickly denounced House Republicans for scuttling debt reduction and preventing “the very wealthiest and special interests from paying their fair share.”
How much is a “fair” share? As much as the Democrats say, apparently.
• Also starting in 2013 is a 2.3% excise tax on medical device manufacturers and importers. That’s estimated to raise $20 billion.
Combined with a similar tax on medical devises in ObamaCare, it will make it harder for granny to afford a pacemaker. They say Paul Ryan will push granny off the cliff. Obama is more merciful, allowing her to die in her bed for the lack of equipment.
• Already underway this year is the new annual fee on “branded” drug makers and importers, which will raise $27 billion.
Hell, Obama is even going to make the “pain pill” more expensive.
• Starting in 2018, the bill imposes a whopping 40% “excise tax” on high-cost health insurance plans. Though it only applies to two years in the 2010-2019 window of ObamaCare’s original budget score, this tax would still raise $32 billion—and much more in future years.
This will not be collected, at least at the levels projected, as employers will simply change policies to be just below the limit for the tax. Of course, people will lose their plans, but we can’t expect Obama to keep his promises, can we?
And don’t forget a new annual fee on health insurance providers starting in 2014 and estimated to raise $60 billion. This tax, like many others on this list, will be passed along to consumers in higher health-care costs.
And more costs to us.
This is not a complete list, but you get the idea. Obama’s tax plan will hurt the very people that he is allegedly trying to help. Most of these items seem to be more Cloward-Piven for the medical industry, hastening it’s elimination, and takeover by single payer. But all in all, there are a few things that the administration either doesn’t get, or does, and refused to discuss:
1. The end user pays all taxes: Businesses large and small face a choice when it comes to taxes; they can increase prices, lay people off, staff reduction by attrition, reduce or eliminate expansion plans or new products, or a combination of any of these. In the end, it hurts everyone.
2. Increased taxes provide a disincentive to businesses, so they either cut back, or stop plans for growth. Less is produced and sold, and therefore, less is taxed. For some background, this is what happened to the Yacht industry when they GOP caved and passed a luxury tax on expensive items. You know, so the rich would “pay their fair share…”
Note that all of these articles are take from different times during the existence of this tax, which was later repealed, but the damage was already done.
According to a survey of the largest boat dealers in Connecticut, conducted by the Marine Retailers Association of America (MRAA), sales of boats costing $100,000 or more have fallen 93 percent, from $7.879 million in 1990 to $ 545,000 for the same period this year. Nationwide, more than19,000 people have been put out of work at boat making plants.
The 1990 budget deal also slapped a hefty luxury tax on boats… to draw more money from wealthy yacht owners. What actually happened? People bought fewer boats. So who really paid the price? The many nonwealthy boat builders who were put out of work by the tax… The [Washington] Post article reported estimates that 25,000 to 30,000 jobs were lost. These effects were so obvious that even the tax raisers in Congress now plan to repeal the yacht tax.
According to a study done for the Joint Economic Committee, the tax destroyed 330 jobs in jewelry manufacturing, 1,470 in the aircraft industry and 7,600 in the boating industry. The job losses cost the government a total of $24.2 million in unemployment benefits and lost income tax revenues. So the net effect of the taxes was a loss of $7.6 million in fiscal 1991, which means the government projection was off by $38.6 million.
If Obama wants a trillion dollars in new taxes, he should know that they’ll never collect that amount, because the economic activity that can be taxed will decrease. Or, people will eat the increased cost, and not engage in other economic activities. No matter what, rather than be of any value, the taxes will likely cause more economic damage.
If the GOP signs on to this, they will cause something unprecedented-they’ll prove the leftist sabotage narrative correct. They will have sabotaged the economy.
Let’s hope that they don’t live up to their name as the “Stupid Party.”