Part 4
Barack Obama repeatedly tells the American people that he is going to cut taxes for 95% of them. Now that's a pretty nifty trick when more than 40% of Americans don't pay income taxes in the first place. Tell me please ... just how do you cut taxes for someone who doesn't pay taxes?
Here's the fancy narrative (Obama supporters just love that word) that the Obama campaign has come up with. Even if you don't pay income taxes, you still pay payroll taxes. So Obama is going to give these people who only pay Social Security and Medicare taxes an offsetting tax credit. At this point Obama's plan becomes almost impossible to explain. It's convoluted, to say the least, but that's out of necessity. When people started reminding him that about one-half of the people he's going to cut taxes for don't pay taxes he had to come up with something. The bottom line is this. Obama says that he is not going to take the cost of his tax credits from the Social Security Trust Fund. That's nice, considering the fact that this so-called Trust Fund exists only on paper anyway. But if that money isn't subtracted from the Trust Fund ... where does it come from? Obama's people explain that at first the deficit will just have to increase while these checks are written. Later they'll just go out there and get the money from those "rich people."
OK ... so there we are. It's tax the rancid rich time so that money can be transferred to the poor. But just who are these evil rich people destined to be beaten down by Obama's taxes? At first Barack Obama defined them as "people making over $250,000 a year." That definition had to change when it became known that the $250,000 a year figure was only for a married couple filing a joint tax return. In a heartbeat Obama changed his rhetoric to note that the tax increase would nail "families," not "people" earning over 250 grand. If you're single, the figure will be somewhere between $150,000 and $200,000, depending on who you're talking to. We'll try to let you know when Obama settles on a hard figure.
There's your first lie.
So, what does all of this have to do with jobs? Well the very people that Barack Obama wants to nail with these tax increases are the people who create most of the jobs in our economy; America's small business owners.
The Democrats spend no small amount of time excoriating corporations. To listen to a Democrat candidate corporations and lobbyists are the sole sources of evil in our society. Oh ... and right wing talk show hosts. Well, you can forget these evil, nasty corporations for now. Fact is 70% of all jobs in our economy come from America's small business owners. The Small Business Administration recently reported that 80% of all new jobs are being created by these small business owners. These are people who report all of their business income on their personal income tax returns. As such, they are squarely in the crosshairs for The Chosen One's tax increases.
If you are an American concerned about your job with a small business ... and if you vote for Obama ... then you very well could be cutting your own economic throat. Think about it. If the small business owner(s) who employs you has his taxes increased by Barack Obama he is going to look for a way to replace that money. So where does he go to replace his income lost to Barack's tax increases? The best way would be to cut expenses. Well guess what? You're an expense! Will it be your job that is cut to compensate for the increased taxes? Maybe you'll be lucky and just have to forego your next raise. Maybe there would just be a cut in your pay or a reduction in benefits. Cast your vote and take your chances!
In recent days the McCain campaign has finally started to warn people about the possible consequences of Obama's tax increases on America's small businesses. This has forced the Obama campaign to come up with a response. Initially Barack Obama started saying that he was going to give a break on capital gains taxes to small businesses. This worked for a while until people started figuring out that small businesses don't pay capital gains taxes. Back to the drawing board, and this time they came up with a beauty. It's a con, but it works. Barack Obama is now telling the media and anyone else who will listen that 95% of America's small businesses don't make $250,000 a year, and thus won't be affected by Obama's tax increases.
That's the second lie. A lie of omission.
Obama's statistics may be accurate .. or nearly so. But the statement leaves one very important statistic out. Initially when you hear that "95% of all small businesses" line you probably think that this 95% employ about 95% of all of the people working for small businesses. You could think that, but you would be wrong.
The trick here is that the vast majority of America's small businesses are just that ... small. I owned a title abstract business in the 80's that had one employee. My wife owned a travel agency that had two employees. Neither of these small businesses came anywhere near the $250,000 line.
When you think about it you will understand that the important statistic here is the percentage of small business employees who will be affected, not the percentage of small businesses.
The October 21st edition of The Wall Street Journal addressed this issue in an article entitled "Socking It to Small Businesses." The WSJ reports that Obama is right "that most of the 35 million small businesses in America have a net income of less than $250,000, hire only a few workers, and stay in business for less than four years." There's more to the story though: ".. the point is that it is the most successful small and medium-sized businesses that create most of the new jobs.. And they are precisely the businesses that will be slammed by Mr. Obama's tax increase." The Senate Finance Committee reports that of those who file income taxes in the highest two tax brackets; three out of four are the small business owners Obama wants to tax.
The WSJ reports that the National Federation of Independent Business says that only 10% of small businesses with one to nine employees will be hit by Obama's tax increase. However, almost 20% of the small businesses that employ from 10 to 19 people will get nailed, and 50% of small businesses with over 20 employees get punished.
Again ... it is not the percentage of businesses that will have to pay the increased taxes; it's the percentage of the total of small business employees who work for those businesses. The Obama campaign is counting on you not making that distinction; and they know the media won't make it for you; so Obama's "95% of all small businesses don't make $250,000" line will probably rule the day.
Come on folks. These are your jobs we're talking about here. It's time to take your blinders off and see through some of this Obama rhetoric. The Obama campaign has some wonderful people working for them to tell them just how to parse words to hide intent and meaning. Just because they're trying to fool you doesn't mean that you have to be so easily suckered. When Obama talks about change .. he may well mean that you are going to have to change jobs. Now that's change you can believe in, right?
Pandering to the Unions .. at Your Expense.
No comments:
Post a Comment