Obama wants to impose his idea of what is “fair”, which is to stick everything to the rich.

Let me make this easy. Say as a start:

- Group A, the top 5% of the population pay 60% of all taxes
- Group B, the next 45% of the population pay 37% of all taxes
- Group C, the bottom 50% of the population pay 3% of the taxes

What would be equitable would be if the government cut total tax revenue by 5%. Instead of taking in $1T they only took in $950B. What would that mean?

- Group A, the top 5% of the population pay .95×60%, or 56.8%
- Group B, the next 45% of the population pay .95×37%, or 35.15%
- Group C, the bottom 50% of the population pay .95×3%, or 2.85%

Oh, but look what happens? The rich get a 3.2% break, the next 45% get only a 1.85% break, and the poor get a pawltry .15% break. Politicians cry foul saying the rich are sticking it to the poor again. Activists beat the drum of the greedy corporate white men getting over on the nation while the backbone is unfairly burdoned with massive taxation.

But the FACT is that by making such a cut, you’re partially unwinding the inequality that has been built into the tax code for decades. It stands to reason that if you tax a group disproportionate to their size or income, any tax cut will also be disproportionately weighted in opposite way. Oh, but NOOOO, we can’t do that. We will tax them disproportionately, but we will cut their taxes on par with everyone else.

Let’s look at the Obama scam. If you cut taxes for 95% of the population as Obama claims (groups B and C) based on the amount they pay relative to their adjusted gross income (AGI), you have another interesting thing occur. Here’s the baseline:

- Group A, the top 5% of the population pay 20.68% of AGI in tax
- Group B, the next 45% of the population pay 9.1% of AGI in tax
- Group C, the bottom 50% of the population pay 2.9% of AGI in tax

Now, Obama goes out and tells us that 95% of the population is going to get a tax cut. Say he cuts that 95% of the populations’ tax by 3%. Whatever you paid as a percentage of your income last year, you’ll pay 3% less this year. If you keep tax revenue THE SAME at $1T, look what happens:

- Group A, the top 5% of the population pay 25.9% of AGI in tax
- Group B, the next 45% of the population pay 6.1% of AGI in tax
- Group C, the bottom 50% of the population pay -.1% of AGI in tax

So yes, you do cut taxes for 95%, but you also make 50% of the population get free money (some call it welfare) to the tune of .1% of their AGI. And, since you’ve cut roughly $155B in taxes for the bottom 95%, the rich get a 5.3% tax INCREASE. You’ve also created a nearly irreversable situation:

1) The majority of the population doesn’t pay taxes - you only need to look at the US healthcare system, or any government funded enterprise, or the tab at an “open bar” to see how much care there is for wasteful spending when you’re not picking up the tab. The people will call for anything and everything they want, without a care for the cost, because they aren’t paying it.

2) The government will gain immeasurable power over the people: based on the above, we’ll see nationalized health care, we’ll see increased government authority over private sector businesses, we’ll see politicians run on platforms of giving anything and everything the people want, raising taxes more on the rich, and deciding where that money will go. This will lead to the government controling massive amounts of money, and lobbiests will want their cut so corruption will increase, and at some point liberties will be compromised because after having no taxes, government checks, free health care, etc, there’ll be no will of the people to resist.

3) With 95% of the population happy with the results, no one will ever be able to run for a public office with a stance to reverse this course.

That, my friend, is how you turn a capitalist nation into a socialist state.

Oh and by the way, those figures are REAL and FACTUAL based on the 2006 tax data provided by the IRS:

http://www.taxfoundation.org/taxdata/show/23408.html

Related Posts:

• We have 78 million boomers and 36 million retirees that will climb to 71 million in just 20 years.
• The solutions have been provided but, nobody likes them because they cause a depression.
• There is no “fix” to this. We have to rebuild from the ground up and millions are going to lose everything and suffer for a long time.
• Stock markets will keep going up. Buy and hold worked before through the decades and centuries; it will keep working in the future.
• Smart thing for everyone to do is to GET OUT OF DEBT!

Leave a comment