Saturday, June 28, 2008

Obama's Economic Plan: 2 Trillion in New Taxes

Barack Obama is proposing 2 trillion dollars in tax increases as his economic plan. Obama claims he will tax the rich guys and provide a $1,000 tax credit to the middle class to help pay for higher energy costs. It is becoming painfully obvious that Obama lacks a basic understanding of economic theory.

When politicians raise taxes they never see the proposed return. This is the law of diminishing returns. As taxes are raised there is less money in the pockets of consumers, workers, and the merchants. Corporations, businesses, and merchants are all in business for one reason. They are in business to make a profit. When expenses rise (taxes are an expense) businesses cut back. When the businesses cut back they layoff workers. The workers that are laid off find it difficult to find new employment. Much like the housing market when the supply of workers increase and are in excess of demand real wages fall. As the real wages fall, unemployment increases, and production is reduced revenues fall. As these revenues falls so does the ability to take in taxes.

So Obama will never see his 2 trillion dollars and America will enter a stage of stagflation. All of our worldly possessions will depreciate including our homes. Homes are already experiencing this. Real estate historically appreciates. However, right now homes are worth les today than many owners have left to pay. Our National debt will continue to increase as revenues fail to meet demands. Bush has an excuse for deficit's. We are in a war and this is not in the treasury. It was not planned for. Without the war supplementals we would balance our budget or be much closer. With Obama's plan to withdraw at any cost you would think we would have money in the treasury. Our revenues into the treasury are higher today than they have ever been. If Obama wins our treasury may have record shortfalls. The economy is currently close to being in a recession. Obama's economic policy will push the economy over the edge and we will not be in a recession but more accurately on the brink of depression. We have had stagflation in the past. Obama's policies will take back to the era of high unemployment, high inflation, high interest rates, and high energy costs. This is change I refuse to believe in.

The Lizard Lives in spite of the Obama minions efforts to silence dissent.

1 comment:

not a dem anymore said...

I am one of those who have been blocked also...I added your new blog to my new place and I will add you to the list at my old site of blocked blogs...