Sunday, September 12, 2010

The Tax 'Cuts'

First, I think it is time to retire the description of the "Bush tax cuts." The reduced tax brackets have been law for about 7 years now, so still referring to them as a "cut" is a little silly. When the law expires at the end of the year, the new tax brackets that will take effect will be correctly called a tax increase, because that is what will happen. Okay boys and girls, onto today's article:

So an article came out today where the House Republican leader, Boehner, today said he will support a law that keeps the tax rates for those earning under 200,000 the same and increases tax rates for those making over. The last paragraph says,

At a White House news conference Friday, Obama described the Republican proposal for a tax extension for the highest of earners as an effort "to give an average of $100,000 to millionaires."

What is Obama really saying here? What is this per year? Per decade? A lifetime? Because if yearly that would imply an annual salary of $3,333,333 and that would be a pretty large average salary. He certainly must not be talking about the median salary above that tax bracket. Also, he has repeatedly stated that he wants to raise taxes on those individuals earning over $200,000. Does Obama think that everybody who makes over $200,000 a year is a millionaire? I bet this is news to a lot of people.

And who are the millionaires in this country? Obama would have you believe they are only people on Wall Street bagging million dollar salaries. But Stanley's, "The Millionaire Next Door" provides some answers. Generally they are people in their 50s and 60s who have lived below their means, invested their earnings, and accumulated wealth over time. They probably had good jobs but most weren't making over $200,000 a year.

Oh and about all those Wall Streeters who are making $200-300,000 a year... to most people who live in smaller cities that sounds like a lot, but after the federal, state and local governments eat through half and then they pay 30,000 a year in rent, that only amounts to a good job equivalent for smaller cities. Think those making $85-100k a year. They've got bills too, and these people don't become millionaires overnight.

So who is getting the $100k Obama is talking about with this statement?

And really, who is doing the giving here? The government taking less of worker's own hard-earned money amounts to "giving" the worker money? Karl Marx and George Orwell would be very proud of Obama. He studied hard.

1 comment:

Sal said...

I'd also like to add that it won't be a real 'tax cut' for the wealthy until the last marginal bracket is below the one before it. Democrats would have you believe that somehow high income earners are not paying taxes and that the burden falls on the middle class. Nothing could be farther from the truth.