Category Archives: Politics

Middle Class Would Pay Less Under McCain Tax Plan

A closer look at the Obama and McCain tax plans for the reveals that it is not just the “rich” taxpayers earning more than $200,000 that would face higher rates under Obama than under McCain’s tax proposal.

The reason for this is simple: McCain expands the exemptions families can take under both the regular and alternative minimum tax schedules. Obama offers nothing new to this group. Our analysis shows that for an Adjusted Gross Income (AGI) of $50,000 or more, a household would face a higher rate under Obama’s tax plan than under McCain’s. That is hardly a “rich” household. Adjusted Gross Income is the pre-exemptions and deductions income reported on tax forms, and many middle class households would have AGI of at least $50,000.

Continue reading on The Foundry.

Wisdom Dispenser

During this election year let’s be reminded of these words:

* You cannot help the poor, by destroying the rich.

* You cannot strengthen the weak, by weakening the strong.

* You cannot bring about prosperity, by discouraging thrift.

* You cannot lift the wage earner up, by pulling the wage payer down.

* You cannot further the brotherhood of man, by inciting class hatred.

* You cannot build character and courage, by taking away people’s initiative and independence.

* You cannot help people permanently, by doing for them what they could and should, do for themselves.

Do you recognize the author?

It was Abraham Lincoln

Very, very wise words, written years ago and we still don’t get it…..

My Worry This Election Season

I’m really worried that too many young people will look at the superficial Obama, the well-spoken man who promises much, and yet fail to understand that taxing and creating a larger central government are not ways to improve the economy. If Obama does win, I’ll at least be fortunate enough to be earning a small salary as a resident for his single four-year term and, therefore, not have to distribute as much of my hard work to the large number of Americans that contribute little but expect the government to provide everything for them. One can only hope that he is promising this redistribution only to get elected and then back down to a moderate view. Unfortunately, that may not be the case and it may take four years for the American people to realize the fallacy of their ways. Hopefully, McCain will be able to get the message out on the drastic difference between him and Obama on health care, the economy, and the military.

Sadly, here’s a YouTube video of a typical starry eyed Obama supporter, saying “I won’t have to worry about putting gas in my car. I won’t have to worry about paying my mortgage. If I help him, he’s gonna help me.” Just what does she think Obama will do? Give her free money, free health care, free gas? The money has to come from somewhere. What slippery slope towards socialism are we being led down?

Sacrifice and Big Promises

One of the most interesting questions at last week’s debate was from a woman asking what sacrifices John McCain and Barack Obama would ask of Americans “to get out of the economic morass.”

The questioner alluded to World War II, the hallmark usually cited by people miffed that the war on terror doesn’t involve meatless days. Of course, our troops do not lack for meat and, what with blue bins, every day’s a mandatory scrap-metal drive, so WW II’s hardly a relevant template.

McCain’s answer, then, was encouragingly blunt: “There are some programs we may have to eliminate.”

The federal budget has become a $2.9 trillion buffet with delicacies for everyone — the nonpartisan Tax Foundation last year estimated that 67% of American households are treated to more in government spending than they ever pay in taxes. If you’re talking shared sacrifice, the only realistic starting point is government spending.

Obama, meanwhile, said that maybe you should get a higher-mileage car. Any ex-Hummer dealer could tell you that most people did that without Obama’s help.

Then Obama went on to say this shared sacrifice would entail a tax cut for 95% of us.

Bluntly: No. First, it’s not a tax cut if you’re already paying nothing, net, to the feds, as 40% of households do. It’s a refundable credit, which means Uncle Sam takes money from someone else and gives it to you. The old-fashioned word for this is “welfare.”

More practically, you’re not going to get even that. The nonpartisan U.S. Budget Watch calculates that Obama has proposed $990 billion in new spending for his first term. The equally nonpartisan National Taxpayers Union pegs Obama’s promises at $293 billion a year, three times its estimate for McCain. None of this accounts for the cost of rescuing our economy. So, no, 95% of us won’t get a nicer cut of federal pelf. …

Continue reading on JSOnline, Sacrifice and big promises.

Obama’s Economic Agenda

Presidential candidate Barack Obama’s mantra for change in economic policies amounts to this: a huge increase in redistribution of income at the hands of the federal government. While Obama refers to this as a “net” tax cut, raising taxes on the top 5 percent and lowering taxes or increasing outright benefits for the other 95 percent simply amounts to an indisputably massive increase in redistribution and ultimately very little meaningful change.

To hear Obama and other Democrats describe our current policies, one might think that we do very little to help the poor and disadvantaged. But Americans already transfer more than a trillion dollars a year to low-income households. That’s a lot of money. Before we endorse Obama’s agenda of more of the same, shouldn’t we ask him what benefits a trillion dollars a year have yielded so far? Has that money reduced dependency? Has it solved the problems associated with poverty and inequality? Are more disadvantaged children being raised in stable two-parent families today than 50 years ago?

Since Obama believes that “in America, prosperity has always risen from the bottom up,” he should be genuinely concerned with imposing higher marginal tax rates on non-rich Americans. But economists will be more concerned with the higher rates on that top 5 percent because we know that the “rich” play a crucial role in financing the economy’s investments and new business start-ups and in producing the technological innovations so critical to improving our prosperity. Higher marginal tax rates on the “rich” are certain to reduce the contributions they make to the well being of all Americans.

Increasing marginal tax rates as Obama proposes may in the short run improve the material well-being of lower income Americans (at the expense of higher income Americans), but in the long run it will lead to slower economic growth and lower incomes for most people in the future. Economic research suggests that our current redistributive policies have already reduced the average American’s before-tax income by 25 percent. This is the hidden cost of redistribution that is well documented in economics literature, but rarely acknowledged in media discussions. That cost will become larger in the future if Obama’s economic agenda is put into place.

Continue reading, Obama’s Economic Agenda: This Is Change?

Different Tax Plans, Different Futures

Obama has a bad record when it comes to taxes:

1.

It looks more and more like Joe the Plumber was on to something about taxes, though you wouldn’t know if from most of the polls and media. The Heritage Foundation has the details in our new study: If a President McCain got his way on tax reform, Americans could expect to see jobs, the economy and their own disposable income grow much faster than if a President Obama were to push through his proposals.

As this chart shows, the economy would grow by $320 billion more in 10 years under John McCain’s tax plan than under Barack Obama’s, adjusted for inflation. More than twice as many jobs would be created by the McCain plan — 3.43 million, compared with 1.58 million under the Obama plan…

Continue reading on Cato-at-liberty

2. Transcript of Democratic Debate

MR. GIBSON: And in each instance, when the rate dropped, revenues from the tax increased. The government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down. So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?

SENATOR OBAMA: Well, Charlie, what I’ve said is that I would look at raising the capital gains tax for purposes of fairness. We saw an article today which showed that the top 50 hedge fund managers made $29 billion last year — $29 billion for 50 individuals. And part of what has happened is that those who are able to work the stock market and amass huge fortunes on capital gains are paying a lower tax rate than their secretaries. That’s not fair. [. . . .]

MR. GIBSON: But history shows that when you drop the capital gains tax, the revenues go up.

SENATOR OBAMA: Well, that might happen or it might not. It depends on what’s happening on Wall Street and how business is going.

Marching Towards Socialism

Quote of the week from a liberal caller that I heard on talk radio: “It is the government’s job to create equality through taxation.”

Wow! What a horrible idea. With less incentive to work hard, this equality would drop to the least common denominator and the economy would crumble. Kind of like Obama’s idea of taxing the profitable companies that support this country and distributing the wealth to the people that don’t even pay taxes. This isn’t even a tax cut for them but simply a handout by redistribution.

Here’s John McCain’s take on this in one of his radio addresses:

Joe explained that he works for a small plumbing and heating company. He’s been thinking about maybe taking over the business when his boss retires. Problem is, that would make Joe one of millions of small business owners who face a sudden increase in taxes under my opponent’s tax plan.

That didn’t seem fair to Joe. He wanted to know why Barack Obama plans to raise taxes on folks who are trying to start or grow a business and create jobs for others. And fairness aside, at a time of serious economic crisis, punishing job creators didn’t seem like a real good way to kick-start a recovery.

My opponent’s answer showed that economic recovery isn’t even his top priority. His goal, as Senator Obama put it, is to “spread the wealth around.”

You see, he believes in redistributing wealth, not in policies that help us all make more of it. Joe, in his plainspoken way, said this sounded a lot like socialism. And a lot of Americans are thinking along those same lines. In the best case, “spreading the wealth around” is a familiar idea from the American left. And that kind of class warfare sure doesn’t sound like a “new kind of politics.”

This would also explain some big problems with my opponent’s claim that he will cut income taxes for 95 percent of Americans. You might ask: How do you cut income taxes for 95 percent of Americans, when more than 40 percent pay no income taxes right now? How do you reduce the number zero?

Well, that’s the key to Barack Obama’s whole plan: Since you can’t reduce taxes on those who pay zero, the government will write them all checks called a tax credit. And the Treasury will cover those checks by taxing other people, including a lot of folks just like Joe.

In other words, Barack Obama’s tax plan would convert the IRS into a giant welfare agency, redistributing massive amounts of wealth at the direction of politicians in Washington. I suppose when you’ve voted against lowering taxes 94 times, as Senator Obama has done, a new definition of the term “tax credit” comes in handy.

At least in Europe, the Socialist leaders who so admire my opponent are upfront about their objectives. They use real numbers and honest language. And we should demand equal candor from Senator Obama. Raising taxes on some in order to give checks to others is not a tax cut it’s just another government giveaway.

What’s more, the Obama tax increase would come at the worst possible time for America, and especially for small businesses like the one Joe dreams of owning. Small businesses provide 16 million jobs in America. And a sudden tax hike will kill those jobs at a time when need to be creating more jobs.

Fortunately, America has an alternative to the phony tax cut my opponent started talking about only months ago. The McCain-Palin tax cut is the real thing. Among our other serious tax reforms, we’re going to reduce every income tax bill in America, and double the child deduction for every family. We will cut the capital gains tax. And we will cut business taxes to help create jobs, and keep American businesses in America.

The Youth Vote

… Brooke, who lives in Denver, is 24 and works in a local arts program. Dave, 23, lives in Connecticut, and isn’t doing a lot now. “I was recently working in an organic lettuce farm in Hawaii, and after that I was a camp counselor, and I’m currently unemployed,” he tells me. Nouri, 22, lives in New York and works for a documentary filmmaker — he’s here tonight as part of a project “making movies about protests and questioning the validity of both the convention and protesting and trying to find a place in that dynamic.” The three of them met when they were students at Wesleyan.

They all admire Obama and very much want him to become president. If that happens, I ask, what would they like to see him do?

“Tangibly?” asks Brooke.

“Well, yes — tangibly.”

“I just think that he has the capacity to really rally people together in a way that I haven’t seen before,” she says. “The other day, I went to the Denver Coliseum to see Rage Against the Machine and the Flobots. And I was astounded by their ability to musically rally a large amount of people towards peaceful protest. There was an amazing march that ensued after the concert; it was unbelievably peaceful and rule-y, as opposed to unruly, but focused and determined, and I feel that on a more general level I would love to see Barack rally a large amount of people, a very large amount of people, all together.”

“Rally them to do anything in particular?” I ask.

Brooke pauses for quite a while. “Well, build morale. Build a sense of empowerment.”

I ask about John McCain.

“Boo!” says Nouri. “He’s a warmongering, oblivious, ill-informed, bought-out politician.”

“Actually, I’d say he’d be a belly itcher and not a pitcher,” Brooke says. “And we would like a pitcher and not a belly itcher.”

The three break into giggles. “We want a pitcher, not a belly itcher!” then begin to chant. “We want a batter, not a broken ladder!”

“McCain’s a broken ladder,” Brooke tells me. …

Source: Byron York: Mile High Youth for Obama

Is this who you want determining the future of America? Could these young adults actually debate any of the issues? Do they know what “change” Obama is promising? Or, are they just part of the celebrity cult of Obama?

Return to Small Government

I’m glad that the Republican party seems to be returning to its roots of small government. The speeches tonight by Romney, Huckabee, and Giuliani all alluded to that fact.

Here’s a great quote that Huckabee brought up (however, he incorrectly attributed it to Lincoln rather than Ford):

“A government big enough to give you everything you want is a government big enough to take from you everything you have.”
President Ford’s Address to a Joint Session of Congress
August 12, 1974

Obama’s Attack of Palin

The Weekly Standard says this:

Barack Obama’s spokesman says that Alaska governor Sarah Palin is too inexperienced to be vice president:
“Today, John McCain put the former mayor of a town of 9,000 with zero foreign policy experience a heartbeat away from the presidency. Governor Palin shares John McCain’s commitment to overturning Roe v. Wade, the agenda of Big Oil and continuing George Bush’s failed economic policies — that’s not the change we need, it’s just more of the same,” said Bill Burton, Obama Campaign Spokesman.
Jen Rubin calls the “town of 9,000” line “bittergate II”; Sonny Bunch writes:
“Please,” John McCain is praying right now AS I TYPE, “Let a Democrat say that an executive with 2 years of experience and no foreign policy expertise isn’t ready for the presidency. Oh pretty please. Because you know what I’m going to do? I’m going to take that soundbite, put it in an ad, slap Obama’s mug up there, and run it over and over and over again.”
Because Palin has exactly as much experience as Obama–arguably more, since she’s an executive. The only difference is that she isn’t running for president.
And here’s the official McCain campaign response:
“It is pretty audacious for the Obama campaign to say that Governor Palin is not qualified to be Vice President. She has a record of accomplishment that Senator Obama simply cannot match. Governor Palin has spent her time in office shaking up government in Alaska and actually achieving results — whether it’s taking on corruption, passing ethics reform or stopping wasteful spending and the ‘bridge to nowhere.’ Senator Obama has spent his time in office running for President.” –Jill Hazelbaker, McCain Communications Director