Posted on 01/06/2009 10:17:58 AM PST by george76
IT now looks like half of President-elect Barack Obama's stimulus package will take the form of "tax cuts" for 95 percent of all Americans. Yet this wouldn't so much boost the economy as trigger a massive, unhealthy shift in American politics.
Under Obama's plan, the majority of American voters would pay no federal income taxes, but would get money from the government instead. That is, these "refundable tax credits" are basically welfare checks - and Obama's plan would leave the most of us collecting, not paying.
A $200 billion giveaway won't do much to get a $14 trillion economy rolling again. But the plan would leave any future taxpayer revolt no hope of majority support.
Today, the bottom 50 percent of US taxpayers pays a total of $30.6 billion in federal income taxes on a combined income of about $1 trillion. So about 3 percent of all federal income-tax payments come from the poorest half of the country. (The top 1 percent pays 40 percent; the top 25 percent pay 85 percent of the federal income tax.)
Obama's plan - he'd give all couples a $1,000 refundable tax credit and all single people $500 - would funnel more than $50 billion to the lowest half of the country, thereby completely wiping out their total federal tax liability. In most cases, it would trigger a "refund" welfare check.
In one stroke, this would transform the majority of voters from taxpayers into tax eaters - and leave an increasingly small minority to pay the bill. Whether or not this is good economics, it is very dangerous politics.
(Excerpt) Read more at nypost.com ...
I am sincerely hoping the economy stays at least moderately bad for the next year so that it is more difficult for Obama to make these tax changes. If Obama gets his way, we’ll be France in ten years.
Ain’t Social Security welfare also?
Get with the program, buddy. There are a lot of mortgages to pay and gas tanks to fill.
And a Ponzi scheme.
Ain’t Social Security welfare also?
Yet another reason to run a small firearms-manufacturing biz - I can deduct my ammo costs.
It's lousy economics ... it's absolutely disastrous politics. It will end badly.
The solution is for the small minority to move up here to Galt's Gulch. The Looters and Moochers can then enjoy each others company and we can again live in peace.
I’d be more convinced by their numbers if they also took into account Social Security taxes.
Heck, I am worried that if Obama and the Democrats get their way we will be ROME in ten years, as our Caesar feeds the bellies of his rabble with grain from Egypt.
“A $200 billion giveaway won’t do much to get a $14 trillion economy rolling again. But the plan would leave any future taxpayer revolt no hope of majority support. “
Not true. The FairTax (no space between f and T) is making headway among all income levels except the ultra wealthy (e.g. Gates, Buffett).
Nixon’s gift that keeps on giving.
He’s talking about a plan that is COMPLETELY DIFFERENT from what you propose, and once passed will make it impossible to properly reform taxes.
“If Obama gets his way, we’ll be France in ten years.”
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Oh come on! The anointed one with the sun-drenched pecs can work faster than that. He’ll make France look like a conservative heaven within four years. Give him ten years and this country won’t even exist.
I understand what he is saying. But his assertion is not true as I posted.
The FairTax Rebate ensures the poor are left untaxed. That is the point.
The point is the FairTax is a pipedream, it wont pass in this Congress or in any congress led by Dems.
It is not a pipedream except in the mushy dark recesses of small minds.
It is a process of people education and it is is making great progress.
We don’t need Congress to take the lead on it because it is a people movement, a grass roots effort. The People will dictate in the end what Congress will do. And those of the Poeple that learn how the FairTax works do not forget it, they join it and support it, so much so that 800 people everyday are joining the grassroots AFFT.
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