Tuesday, October 21, 2008

"I will cut taxes for 95% of Americans"----yeah sure ya will

Senator Obama has over and over emphasized how his programs will cut the taxes of 95% of Americans , which is not exactly the truth. In that 40% of Americans are retired seniors, or are young adults that only work part time and do not pay taxes ---but the biased media don't seem willing to correct that lie to the American People.

Here's another issue the media has failed to ask Mr. Obama to explain, and one I am sure he hopes nobody will ask him. Beginning in 2009, the Bush tax cuts of 2001 and 2003 begin to expire. What follows is information taken from an Article from The Heritage Foundation, which addresses this issue in clear concise detail. MR. Obama and the leftists are not about to keep those tax cuts permenent, and will let them expire----but it won't count as a tax increase in their book.

The Bush 2001 & 2003 Tax Cuts about to expire:

If the tax cuts of 2001 and 2003 are allowed to expire, millions of working families will see their economic prospects dim, their job opportunities diminish, and economic uncertainty rise.

The central provisions of these landmark tax bills are scheduled to expire over the next five years, which means that taxes will rise dramatically for most taxpayers. Between now and January 1, 2011 . Tax rates will rise substantially in each tax bracket, some by 450 basis points;
Low-income taxpayers will see the 10-percent tax bracket disappear, and they will have to pay taxes at the 15-percent rate;
Married taxpayers will see the marriage penalty return;
Taxpayers with children will lose 50 percent of their child tax credits;
Taxes on dividends will increase beginning on January 1, 2009;
Taxes on capital gains will increase, also beginning on January 1, 2009; and
Federal death taxes will come back to life in 2011, after fading down to nothing in 2010.

What make this tax nightmare scenario particularly scary are the economic benefits that will never be realized if the 2001 and 2003 tax cuts disappear. Businesses are watching now to see if Congress will make permanent the first to expire of the major economic growth components of the 2001 and 2003 tax acts—lower taxes on dividends and capital gains. Failing to make permanent the low tax rates on investment would signal to businesses of all sizes that the other major elements of the Bush tax plan will also be allowed to expire. They would adjust their investment and hiring accordingly.

Economists in the Center for Data Analysis at The Heritage Foundation used a mainstream model of the U.S. economy to project the economic effects of making the tax cuts of 2001 and 2003 permanent. Their report estimates significant economic gains throughout the period from 2006 through 2014, particularly after 2008. For example, making certain that taxes on investment remain low will add about 285,000 jobs per year in fiscal years 2008 and 2009. In those two years alone, lower taxes on capital gains and dividends mean an additional $70 billion in economic output and an additional $110 billion in disposable income for households.

If Congress makes the tax cuts permanent, the major economic benefits begin in 2011. For example,
Total employment will rise by 1,087,000 jobs per year, on average;
Annual GDP will be over $111 billion higher, after inflation;
Personal savings will grow by $163 billion per year, on average, after inflation; and
After-tax household income will grow by an annual average of $274 billion per year, after inflation.
However, these benefits become economic losses if Congress fails to make the 2001 and 2003 tax cuts permanent. What is the cost of failing to act? Over one million lost jobs each year between 2011 and 2014; over a hundred billion dollars less in economic output per year; slower wage and salary growth; slower savings growth; and so on. The need for Congress to make the 2001 and 2003 tax cuts permanent is clear.


  1. Every time I hear him say he's going to cut taxes I ask myself "HOW?".

  2. On top of that and wanting to spread the wealth he is going to give people who pay no taxes except for payroll taxes(social security), these people will be given tax credits on the payroll tax which will directly affect all who are on social security and those who are thinking of retiring in the next few years. You will see that dwindling. What is this man thinking? I now am hearing whether he wins or not there will be significant rioting in high urban areas across the country. Are we turning into a BAnana Republic? Pray, pray, pray not.

  3. I do enjoy reading your opinions on the political fiascos currently underway, but I can't for the life of me understand how either candidate would be better than the other.

    Too bad we couldn't simply get rid of all government and just be good humans to one another.

  4. Well, if Obama wins we have already planned to pull our monies in our retirement accounts out and taking the hit at the tax rate now and then start over with reinvestment. Still have to work the bugs out but what else can a person do.

  5. I found you from your comment on BearNaked's blog where we were in the obvious minority politically. I keep asking why the media isn't asking OB the hard questions and what makes people think he'll save the world when we've been in a Democratic controlled house for almost 4 years and we've done nothing but spiral downhill. Grrr......I get my blood pressure up just thinking about OB as our President.


Speak up, don't be a nebish---your opinions do count.