Wednesday, October 22, 2008

It Doesn't Compute: Obama's Tax Plan A Ruse


By Editorial, Union Leader (NH)October 22, 2008

Article Excerpt:
Sen. Barack Obama claims that if only we let him raise taxes on a measly 5 percent of "working Americans," he could do great things.

Well, that sounds just peachy. Tax the rich, give to everyone else. Except there's one little detail the national media don't seem to like pointing out. The math doesn't add up.

Numerous organizations, including the Associated Press, have noted that Obama's proposals spend hundreds of millions of dollars more than his tax hikes raise. What is less well known is that Obama's tax plan itself sends out of Washington far more than it brings in. Obama's campaign twice admits that in the wording of the tax plan.

According to the plan, "his tax relief for middle-class families is
larger than the revenue raised by his tax changes for families over $250,000." That sounds like he's giving a net tax cut. But much of what he calls "tax cuts" are actually cash payments to low- and middle-income Americans. Ultimately, he sends out of Washington hundreds of billions of dollars more than it takes in.


In other words, Obama promises more in benefits to low- and middle-income Americans than his plan can finance with his tax hikes on "families" making more than $250,000 a year. And note the word, "families." Even though Obama says that no "family" making less than $250,000 a year will see a tax increase, in fact his plan raises taxes on individuals making $200,000 a year or more.

The bottom line is that Obama is not being honest about his tax and spending plans.
It is impossible -- impossible! -- for him to finance his giveaways by taxing only those making $250,000 or more. He will have to raise taxes substantially on people making much, much less than that.

If you think you are going to avoid a tax increase on Obama's watch because you aren't "rich," remember this: A government that arbitrarily picks $250,000 as a dividing line can, using the same purely political considerations, pick any number as a dividing line. What makes you so sure that you will wind up on the right side of that equation once an Obama administration begins making up the difference between the massive number of benefits it promised to deliver and the tiny amount of pain it promised to inflict to finance those benefit?

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