There was an interesting exchange during the debate last night:
“He has voted in the United States Senate to increase taxes on people who make as low as $42,000 a year,” McCain said.
“That’s not true, John. That’s not true,” Obama said, interrupting him.
“Barack Obama has voted in support of higher taxes 94 times in just 3 years, including higher taxes for Americans making just $42,000 a year. If voters consider Barack Obama’s record of opposing tax cuts and his outspoken proposals to raise taxes on family savings, Social Security and small businesses — this latest campaign promise lacks a single shred of credibility.”
Despite Claiming He’d Lower Taxes For Middle Income Americans, Obama Voted In Favor Of The Democrats’ Budget – Which Would Raise Tax Rates For Americans Earning $42,000 Or More:
Obama Voted Twice In Favor Of The Democrats’ FY 2009 Budget Resolution. (S. Con. Res. 70, CQ Vote #85: Adopted 51-44: R 2-43; D 47-1; I 2-0, 3/14/08, Obama Voted Yea; S. Con. Res. 70, CQ Vote #142: Adopted 48-45: R 2-44; D 44-1; I 2-0, 6/4/08, Obama Voted Yea)
In Obama’s new version of an economic plan (he’s had so many my eyeballs start rolling), Obama claims to reduce taxes for 95% of Americans (the actual figure is only 81% by Obama’s own figures). And over 40% of Obama’s “95%” figure actually already don’t pay federal income taxes – which means that it is merely a welfare-like transfer payment.
The result of reducing the rax rate paid by the rich has both increased federal revenues and even raised the ratio of taxes paid compared with income earned. Lowering taxes has provided an incentive to invest and build wealth, which has in turn raised revenues and increased the percentage of taxes paid by the rich relative to other income classes.
Barack Obama – who IS last years’ winner of “Most liberal US Senator” award – is a tax and spend liberal. He has $800 billion in new spending projects. When the wealthy react to his tax increases by sheltering their money, who is he going to come after next? He’s going to come after you. He’s already come after you before -94 times in just 3 years, in fact.
When you tax the rich, they find it profitable to shelter their assets. Not only will the rich pursue tax sheltering activity, but their very focus will shift from making money to avoiding taxes. That means less investment; which means less investment capital; which means less jobs. When the housing finance crisis is already freezing investment capital, do you really want Obama in charge of the economy?
Furthermore, Obama will raise your costs. He has repeatedly attacked John McCain for wanting to lower taxes on corporations. Obama has promised to raise taxes on corporations – which already pay the 2nd highest tax rate in the world. He will raise taxes on small businesses, as well.
The fact that he has forced to acknowledge that raising taxes might be a bad idea in a recession means nothing. He won’t be able to help himself once he’s in office, with a Democratic Congress pushing him. He won’t stand up against them for the simple reason that he’s never stood up against Democrats. Obama makes a big deal about the fact that McCain has voted with Bush 90% of the time. But Obama votes with Harry Reid and Nancy Pelosi 97% of the time. A Barack Obama presidency would look little different from a Nancy Pelosi presidency.
What will happen when businesses find themselves paying taxes? Does anyone seriously think that prices won’t increase to keep up with their increased operating costs? Does anyone seriously think that jobs won’t be cut in order to reduce costs?
John McCain mentioned Ireland, whose economy has boomed since they reduced their corporate tax rate to 11%. The U.S. rate is 35%. Which would you rather pay? Can you seriously blame businesses for relocating or “outsourcing” given such disparities?
If Barack Obama is elected President, he will try to tax the rich. But as the rich shelter their money, and as corporations cut back their operations, relocate, or outsource to recover their desired profit margins, the American people will see their Faustian bargain go south on them very quickly.