Big Dogs Weblog

Obama Sees Benefit of not Taxing the Rich

by Big Dog on Jun 18, 2008 at 08:50 Political

Barack Obama is cut from the same cloth as many Democrats before him. Tax and spend, and then tax and spend some more. Democrats always talk about taxing the rich as if that would solve our problems and as if the Rich don’t pay enough in taxes as it is. Whenever tax cuts are mentioned Democrats recoil like Dracula exposed to a Cross. Tax cuts are always bad unless the have a candidate running in a conservative region. Then they talk about how wonderful tax cuts are. Of course, to a Democrat, tax cuts are always for the rich. This is partially true because the rich pay most of the taxes in this country. However, the middle class made out better under the last tax cuts than the rich did. I don’t include the poor because they pay little, if any, taxes (why they did not get a rebate when the president cut taxes).

Democrats let the cat out of the bag recently when they discussed the “rebate” checks. They all talked about how the economy would be stimulated and that is what they named the bipartisan venture; The Economic Stimulus Bill. Democrats were forced to admit that allowing Americans to keep more of their money causes them to spend more and is better for the economy. The problem is, they gave the money to people who pay little or no taxes. Notice I say gave. In some cases they returned the money to people who paid taxes but a lot of people who pay absolutely nothing in taxes received tax “rebates” from money paid in by others. The Democrats will admit that lower taxes (that is what an economic stimulus is, after all) are good for the economy when it is an election year but they never quite seem to understand that it is better to take less from people than to take it and give some back when an election is not around the corner.

Barack Obama has been talking about how he will end Bush’s tax cuts “for the rich” and how he will tax people who make more than $250,000 a year. He would also lower taxes on the middle class, a group that shoulders a smaller part of the country’s burden than those making more. Obama is full of taxes. Tax this, tax that but in all of it, he admitted that it might not be wise to tax the rich after all:

Among Obama’s other proposals: raising the tax on capital gains and qualified dividends. However, Obama has raised the possibility of deferring some of his tax hikes on the wealthy given the ailing economy. My Way News

So Barry O Bam Bam understands that taxing the wealthy is not a great idea in a difficult economy. He must understand that doing so would make the economic problems much worse because it is the money of the wealthy that provides jobs and business opportunities. It is also the wealthy spending their money that helps stimulate the economy and when they are taxed more they spend less or, like members of Congress, they look for more tax free investments. If taxing them during down times is a cause for concern then why would it be OK to tax them in up times? Higher taxes result in economic troubles and no country ever taxed its way to prosperity. The way to make things better is for Congress to eliminate wasteful spending and there is a lot of that to eliminate.

Of course, Barry O Bam Bam can’t exactly do that since he is proposing trillions in additional wasteful spending. I am willing to bet he will not defer his plans to spend because of the ailing economy.

Tags: economy, Obama, rebates, spending, stimulus, tax the wealthy, taxes