Obama's Redistribution Tax Increase Now To Hit Top 20%, $84,000 - $100,000 Earners!

It is unfortunate that only now in the final days of the campaign that Americans are finally beginning to question Senator Obama's Redistributive Tax Plans. For the past four months I have given Senator Obama a pass on a question that I have always wondered about and now it seems he has answered that question for me.

Senator Obama just a year ago stated that we needed to raise taxes on just the top 1% of taxpayers; those making over $300,000 per year. In the past four months that group has expanded to those individuals and small businesses making over $250,000 per year. Campaign statements and commercials have further expanded that group to those making over $200,000 per year and even Joe Biden brought up questions when he chose to inadvertently suggest a $150,000 per year figure.

Last week the Wall Street Journal exposed the reality of Obama's Tax Plans by analyzing his tax increases and determining that in reality his own proposals would cause increased taxes on individuals making $168,000 per year. Unfortunately, last night Senator Obama proved the Wall Street Journal wrong when he once again shifted his tax policies.

For months I have wondered how Senator Obama's tax increases would affect those families who filed joint returns. Would the tax increase actually amount to an increase on families earning $400,000 - 500,000 per year or would the inverse occur in which joint filers would see an increase in taxes at a joint income of $200,000 - $250,000 annually. Last night, Senator Obama put that question to rest when he announced to the nation that "families earning over $250,000 per year would see a tax increase".

"FAMILIES"! Not Individuals!

So now it appears that Senator Obama is not longer targeting the top 1% of taxpayers, but rather the top 10% of taxpayers. That 10% that makes over $125,000 per year; That 10% that currently pays an astounding 60% of all US Income Taxes according to IRS records.

Moreover, since Senator Obama himself has consistently flipped between the $200k and $250k figure, it is safe to assume that Obama's tax increase could easily hit individual taxpayers and SMALL BUSINESSES making just $100,000 annually. In addition, if you examine the full extent of his tax proposals as the Wall Street Journal has you can now begin to see that Obama's tax increases will likely hit those individuals and SMALL BUSINESSES earning over $84,000 per year.

We are no longer talking about the top 1%, or even the top 2% of earners. With a tax increase that will hit individuals earning $84,000 - $125,000 per year, the top 20% of taxpayers and small businesses would now see an increase in taxes. This expansion of Obama's tax increase base amounts to an increase in taxes on a group 20 times larger than his initial proposals. Now imagine if this is not the end.

Senator Obama seems to believe that he is Robin Hood, and portrays himself as a savior who will take from the rich and provide to the poor and those in-between. In reality, however, Senator Obama more closely resembles the Prince John, the great tax collector who will arbitrarily determine who is deserving of receiving a pittance of the tax dollars collected. It is now becoming apparent that Senator Obama's tax plans would increase the taxes on those individuals and small businesses that already account for over 70% of all tax revenue, only to disproportionately "Spread The Wealth", from the bottom-up, starting with the 40% of individuals who already pay NO TAXES.

This is not change we can believe in, this is change that will squander any increase in government revenues, irreparably damage small business and accelerate the already shrinking middle-class of our nation causing a massive disparity between the classes.

Senator Obama will tell you that his plans start from the bottom-up, increasing the incomes of the poor and creating a stronger middle class. Unfortunately, in practice, his oppressive tax proposals will achieve only 3 things:

1. The already wealthy, whose assets far exceed their living expenses will continue to see their wealth and power grow as these tax proposals only affect income. The rich will become richer.
2. Upward mobility from the middle class to the upper class will increasingly shrink as those who are building wealth see increasingly larger percentages of their earnings flow out the door. The result is stagnation in the upper class and a growing disparity between the upper and middle class. Small business owners pounded by an increasing tax burden will see profits shrink, therefore causing an increase in prices and less hiring. The rise in the cost of small business goods and services will reverberate through the economy, further eroding upward mobility and causing a rise in inflation.
3. Those earners in the lower class will become increasingly dependent upon government entitlements; entitlements that will prove futile as unemployment rises and inflation sets in.
   
   Senator Obama's dream, is a dream of a nation in which there is no poor, only a middle class. In reality, we have seen this dream before; some nations have prescribed to this doctrine and their intent has created societies which have collapsed or which survive without a middle class; nations of truly the have and have nots.

J Brown
October 30th, 2008
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