Barack Obama has again been kind enough to show me my place. While addressing his "age appropriate sex education" ideas, (for kindergarten children?!?) he took a pop shot at conservatives. Though he wanted us to know that Americans are "... generally decent people..." he felt the need to tell us conservatives that we "...listen to the wrong talk radio..." (video Last 60 seconds contain the comments) Considering I do not agree with on.. ah.. hmm... ANYTHING that he stands for, I guess he was referring to me. If you are reading this post and listen to my show (1590 WSMN Sunday's 6-7), then he must be referring to you as well. But then again, Barack does think we are "basically decent people," sort of like Hillary is "likable enough." Well, I am proud to be generally decent even if I listen (or host) the wrong kind of talk radio. Thank you Barack Obama.
Thank you for condescending to those of us who do not want to pay more of our hard earned dollars. No I do not agree with you, and yes I would LOVE to see you FAIL. Nothing would please me more during this presidential election than seeing you lose. That doesn't make me wrong, but it does make me an opinionated individual who believes, rightfully so according to your VP candidate, you are going to cost me more money. No I do not make 250K annually; my family does not even make 100K. But if you're taxing the corporations, their revenue will be reduced. When a company's profit are decreased, the cost for their products typically go up. In other words, this cost is typically passed onto the consumer (you and I).
One more economic point, Barack wants to give tax breaks to 95% of Americans. Not tax payers, but Americans. Sounds good, but let’s look at some examples.
1. About 50% of all tax revenue is paid by the top 5%. Maybe they can afford higher taxes, but what does their tax bracket look like? The people in the top 5% pay about 50% of their gross income. Could you afford to pay 50%? I can't, but then again, I am not making 300k. Most people, who actually pay taxes, pay 25-30% of their gross income in taxes. Quick math for you using arbitrary numbers (not actual figures):
Gross=250k 50%Taxes=125k Net=125k
Gross=150k 30%Taxes=45k Net=105k
So a person making 150k brings home 20k less than a person who makes 300k. So if I net 105k, and I want to net 20 k more per year, I need to make 100k more per year gross? That's 80% of my increase GONE in taxes.
Another way to look at this is for a person to make one third more, they have to spend 80% of their increase on taxes. I am not kidding, this is reality. Even if my example is based on incomes that could be the same tax brackets, it is a fair assessment of the way tax brackets percentages work around the tax bracket break.
2. What did I mean “actually pay taxes?” Out of the 95% that Barack wants to give tax breaks to, many are not paying taxes. No joke, they pay nothing in taxes. Either they are not working (maybe a welfare recipient), they make so little that they get a refund of 100% (or more), or after all deductions are figured in, they receive a refund that equals the taxes they pay. Want a couple of examples?
Family A - Single mom with 3 kids. Makes 20K annually, Pays 6k in taxes. Tax time comes, and she is head of household, 3 children on her taxes, Earned Income Credit, deductions for child care, Transportation write-offs, etc. Refund check = Taxes paid out. 100% refund.
Family B - Married couple who owns a business and has no kids. Tax write-offs for toilet paper, office supplies, computer supplies, automotive expenses, advertising, tax preparation costs, etc. Gross income 60k., taxes on income 18k. They receive a rebate 100% because they can write off ANYTHING so long as they can prove it is used for business purposes. They can even write off part of their rent or mortgage, if they have a designated area that they use for “business.” Yes, if a corner of one room is used for the business (accounting, storage, etc.) and nothing else, you can write off a percentage of your housing cost. (Ask an accountant if you do not believe me)
So how exactly is Barack going to lower taxes for these people? THEY ARE NOT PAYING TAXES!!!!! What are you going to lower? Do you give them free money? Where does that free money come from? Who gives you the money to pay them? Oh wait, you need to take more money from the tax payer so you can pay the tax payer more money? HUH?!?
Of course not! Don’t be silly! He is going to end tax cuts for the oil companies and businesses. A great idea!! Let's make it more expensive for the oil companies and businesses! Companies would never try to raise their prices to recoup the cost of tax increases... WRONG! Yes, the government will get more tax revenue from the companies. But when the increased cost comes down the line, WE pay for the increased cost to the companies!! Thank you Barack for costing us MORE MONEY! Please do not buy into the half-truth Barack is spreading. The part he left out you learn in economics 101; increased cost has to be recouped in product prices, or by cutting staff. (Higher unemployment sound good to anyone? How about lay-offs?)
But Vice Presidential candidate Joe Biden was kind enough to show me the flaw in my logic. (video) He told me that if I was concerned with higher taxes and didn't want taxes to go up, I was not being patriotic. I just need to be more patriotic and pay more money that I don't have, or I am just not patriotic enough.
Well, I guess I don’t want to be more patriotic, just ask my thinning wallet.
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