This week President Barack Obama once again showed his failed leadership by proposing to solve American’s spending and debt crisis by combining token spending cuts with higher income taxes. For two and one half years President Obama has attempted to reignite the U.S. economy with stimulus packages and increased government spending. Despite these efforts the economy remains in the tank, and America continues to fall deeper and deeper into debt.
Obama’s latest idea is to pit middle income working Americans against upper income earners. The plan is to raise taxes by allowing the Bush era tax cuts to expire for income earners making $250,000 or more and to further increase income taxes on millionaires. All told $1.5 trillion in higher taxes. It is class warfare.
The president says wealthy taxpayers don’t pay their fair share. Well, the facts say otherwise. The top 1% of income earners pays 38% of the taxes according to 2008 statistics. Foxnews.com reports that data compiled by the Tax Policy Center states that households with incomes over $1 million pay over 29% of their income in federal taxes while households with income between $50,000 and $75,000 pay about 15 percent. It’s funny how facts can get in the way.
President Obama should be a leader. He should not be pitting one group of Americans against another or one part of the country against another. He should be working to bring a politically divided nation together, not tearing it apart with political rhetoric.
Increasing taxes will hinder our economic recovery and mask the real problem that the U.S. economy faces. America needs spending reform, budget cuts, and simplification of the income tax code. Higher taxes will slow down an already sluggish economy. Individuals will not spend their money for fear of losing their jobs. Businesses will not hire nor invest in new equipment for fear of reduced consumer spending and a worsening economy. There could not be a worse time for raising taxes than today.
If a billionaire like Warren Buffet thinks he should pay more taxes then he should write a bigger check to Uncle Sam and pick up a larger portion of the tab for the outrageous spending addiction that has engulfed Washington. But raising taxes on everyone so one man will pay more is not fair. It is not right.
The solution to overspending is to reduce spending, not to raise taxes. If out of control spending is allowed to continue and financed with higher taxes, then more reckless spending will follow and more and higher taxes will be needed to pay for it. Once taxing the “rich” has caused a financial meltdown and higher unemployment, Washington will have to turn to the middle class to finance its out of control spending habits.
President Obama and liberals don’t understand basic economics and the relationship between government and taxpayers. The economy can afford a certain level of taxation. In fact the economy demands it because without it government cannot provide the services that we expect. But today America has reached its tax ceiling. Busting through that ceiling as Obama and Congressional Democrats want to do will further weaken the national economy. Business will continue to retreat since its tax burden will have increased making already scarce profits shrink even more and further delaying the economic recovery that has eluded this administration.
Making matters worse are the increases in new regulations that the Obama administration has been handing down. Higher taxes will only make matters worse.
What this country desperately needs is an overhaul of the tax code. What we don’t need is higher taxes to finance more spending. Simplification of tax laws and lower tax rates will cause a boom in the national economy. The problem, however, is that the tax code is used to raise money to support an expanding government. If Congress cannot deficit spend, then raising taxes or cutting programs are its only alternatives. Politicians, Democrats and Republicans, don’t like to cut programs although they will pay lip service to spending cuts, as the President has done, because voters want budget cuts. Many members of Congress don’t mind deficit spending. They would be happy with the status quo. Democrats don’t mind raising taxes on high income earners because those voters don’t vote Democrat, and there are so few of them. This is why Obama has proposed $1.5 trillion in new taxes. It’s political, pure and simple. It’s bad policy for the economy, but who cares? It’s for politics and re-election.
President Obama is grabbing at straws trying to find a way to jump start the economy. Knowing he doesn’t know how to do it, Obama has resorted not to math, as he claims, but to class warfare. This is a shame. It is an embarrassment to the Presidency and proves that Barack Obama does not deserve re-election.
Barack Obama was ill prepared to be President, and he has learned nothing after two and one half years on the job. This is why he may be the worse President in the last sixty years.