Monday, October 13, 2008

Obama: Tax Cut Illusion

Obama is providing a tax cut illusion. Under Obama's plan he would provide 33% of Americans a tax giveaway. Giving tax dollars away is not a tax cut it is redistribution of wealth. He planned to be able to provide this tax giveaway by instituting a wind fall profits tax on oil companies. This wind fall profits tax would have taxed oil companies on sales over $80 per barrel. The problem with that theory is that oil is now under $80.00 a barrel. This begs the question Where is Obama going to get the money?

Today Obama was Johnny come lately to the economic crisis. He laid out a smorgasboard of more government expenditures. He has no way of paying for this. Obama claims we can not afford to keep borrowing but yet said he wanted to ease the credit crunch for credit card expenditures. This is absolutely irresponsible. Obama cry's that we are borrowing from China, yet has just proposed the biggest increase in governmental expenditures in the history of America.

It is a proven fact that increasing taxes decreases tax revenues. On the other hand reducing the tax burden will increase revenues. Look at Bush and his tax cuts. The tax cuts did exactly what they were supposed to do. We had record levels of governmental revenues this year. The problem with our government is not that revenues are too low, it is that spending is too high. Obama's tax increases will choke the economy. His deficit spending, that he just came up with after being a month along in this crisis, will explode the Nations debt.

Obama's tax cut is an illusion. No one is going to see a true tax cut under Obama. Obama's tax plan is eerily similar to Herbert Hoover's plan after the 1929 market crash. Hoover spoke of increased taxes and increased expenditures in the midst of an economic crisis, and we all know where that took us.

On top of Obama's tax illusion, his claims that McCain proposes an additional $300 billion towards bailing out bad mortgages is an outright lie. McCain knows we just provided the treasury $700 billion to bailout Wall Street, what McCain proposed is to use $300 billion of that bailout money to help the middle class pay for bad mortgages. Obama sat on the sidelines for three weeks while we sat with markets in turmoil. It took him almost one month to come up with a plan to spend more money. Just remember that Obama and Biden believe it is patriotic to pay more taxes. Just watch what Obama has to say to a plumber about taking money from him and giving it to the poor. This is Socialism at its finest hour.

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