Forbes.com has an interesting explanation of what the country can expect under Obama’s redistributive “Euro-tax” plans.
Obama has also said he wants to push up tax rates on investment and does not agree that corporate tax rates should be cut. Obama’s proposals would not only harm the investment landscape, but they would also make the tax system substantially more “progressive.” In particular, Obama wants to raise taxes on “the rich,” but “cut” taxes for 95% of Americans. He does this by giving $500 to anyone who is in the workforce and earns between $8,000 and $75,000 per year. In addition, he would use tax credits to further subsidize daycare, college and unwed (working) parents.
In many cases, these are not really tax cuts at all but spending programs dressed up as “tax cuts.” The Internal Revenue Service will send out the check rather than some other government agency. This is a modern day version of the negative income tax, and it would make the burden of taxes fall even more heavily on those with higher incomes. This is hard to imagine.
In 2005, the most recent year available, the top 1% of households (by income) earned 16% of income and paid 39% of all income taxes. The top 40% of households earned 74% of income and paid 99% of income taxes.
These percentages surpass levels from the late 1970s, a time when the top income tax rate was 70%. Some say that looking at only income taxes overstates the burden on the wealthy, but when Social Security, Medicare, corporate and excise taxes are included, the top 40% of income earners still pay a whopping 86% of the overall federal tax burden.
Sen. Obama apparently believes that this is not enough. His tax plan would make the system even more progressive and would push the U.S. perilously close to the “tipping point,” when more than 50% of Americans would pay no income taxes at all.
Remember those last line when you’re thinking of voting. Obama and Biden — who believe that paying higher taxes is “patriotic” — want to give your money to the 40%+ of people in the country who currently PAY NO TAXES AT ALL.
This plan is not a “tax cut.” It is a radical expansion of the welfare rolls.
