Obama Admits Tax Cuts For The Rich Stimulate Economy
Jan 8, 2009 Political
The tax cuts enacted under George Bush were for everyone and the middle class made out better than the wealthy. I know that is hard to believe because a rich person gets a bigger dollar figure back but that person pays many multiples of what a middle class worker pays. Additionally, the lower 50% of wage earners pay just under 4% of our nation’s taxes. If they pay little or none then they should be getting little or none back. Our government though, believes in income redistribution or “spreading the wealth.” That is why the last stimulus checks went to people who paid little or no taxes while the upper wage earners, the ones whose taxes ultimately paid for the stimulus, got NOTHING.
When Barack Obama was running for office he said that George Bush had tax cuts for the rich. He had to say that because that is the mantra the left uses to invoke class warfare. They make the middle and lower classes support them by making them envious of the rich. Obama vowed that he would get rid of Bush’s tax cut for the rich and that he would cut taxes for the middle class. The problem with that is the Bush tax cut benefited the middle class and if it goes away the taxes on them go way up. If Obama takes away the tax cut and then gives them a tax cut, what did they gain? Oh well, it sounded good.
As part of the newest stimulus package that Obama says will likely end up being over a TRILLION dollars, there are tax cuts. That is right left wing moonbats who supported him, Obama wants tax cuts for those making under some magic number that is a moving target. Of course, when Bush cut taxes the left said that it would lead to less money going to government and that it was wrong to cut taxes when the country was in such debt. Since the sainted one is adding tax cuts to a stimulus package he must now be admitting that tax cuts stimulate the economy.
But Big Dog, that means nothing. Obama promised to give tax cuts to the middle class and to end Bush’s tax cuts fo the evil rich.
Yep, and Obama is also giving tax cuts to the rich. He has stated that he will probably not seek immediate repeal of Bush’s tax cuts for people making over $250,000 (the tax cuts were for everyone, Obama just wants to repeal them for anyone making this amount or more) and that he will let them expire in 2010. Imagine that, he is allowing the rich to keep the tax cuts in order to stimulate the economy. Barack Obama is now showing what Republicans have stated and what George Bush demonstrated and that is tax cuts (for everyone) stimulate the economy.
A few things though. The tax cuts for the middle class were not part of the original plan and Obama has them there as bait to get Republicans to sign on to the stimulus package. Also, the tax cuts will have little effect on the economy because they will be accompanied by a huge amount of government spending, spending that will give us a deficit that will take generations to pay off.
I am not in favor of the stimulus package and I believe that the more government meddles in the issue the longer the recession will last and it might end up in a full blown depression. We need the government to allow the free market to correct the issue as it always has. Despite Obama’s claim that Wall Street has not worked and needs more government regulation, the fact is the market has worked very well for a long time with just a few periods of economic downturn. The market is good more often than it is bad.
We do not need more government regulation. Government regulation and abandonment of free market principles is what got us in this mess. The government forced lending institutions to make loans that people were never going to be able to pay. That is too much government intervention. Everywhere governments meddle in the free market there is turmoil.
The politicians in DC have spent billions of dollars on bailouts already and there are trillions of dollars that they refuse to tell what it was spent on or who it went to.
More bailouts and more spending means that we have to borrow more money. China already has billions of dollars invested in our government and they are discussing investing billions more. When the bill comes due we are going to be in even greater trouble. We just don’t have the money.
Obama admitted that tax cuts are a stimulus for the economy. Now he needs to learn the second part and that is cutting government spending. If we cut the spending then we will reduce the deficit and things will gradually work back to normal.
I recommend we do not pass the stimulus package. The government is spending well beyond its means and that is a recipe for disaster.
Just ask any of the people who got loans they could not afford when the government forced lending institutions to lend them money.
Is it any wonder that people in this country live beyond their means? Their government is leading by example.
Source:
CNBC
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Tags: depression, economic stimulus, Obama, recession, tax cuts