There are quite a few things wrong with Obama’s new Tax plan, but I’m going to focus on two that are egregiously wrong. The worst thing about it is the built-in socialism, he would tax most busineses in America and pass the money on in the form a of check to the thirty percent of taxpayers who pay no taxes now. Ignore Obama’s protestations about business owner income taxation, it’s a dodge, a smokescreen –most businesses are incorporated and must file their own return and they would be Taxed. It’s welfare revisited, as outlined in this Fox and Friends segment:
On top of taxing most businesses in the US, Obama would also hit the large corporations that just lost huge chunks of net worth; which directly impacts your pension and 401 K plan during a recession. Besides the huge raid on your pension or 401K net worth, Obama’s trickle-down taxation would tax Joe the plumber, Jill the hairdresser, Bill the baker, Bob the butcher and hosts of others who you depend on day in and day out for goods and services.
Do you think you might end up paying a bit more next time you call a plumber, a furnace repairman, shop for groceries, buy gas, or get your hair done under Obama’s plan? Whatever segment of society is taxed you will pay the end. Thus has it always been, thus it will always be until death do you part from the IRS.
Obama will tax the engine of america’s productivity while we are in a recession to re-introduce welfare, make no mistake: no matter how much he talks about the middle class he’s talking about spreading your wealth around. Last point: if Obama is elected he might initially cut your tax, but it would all be washed away as a Democrat congress and a Democrat president let the Bush tax cuts expire in 2011 — so don’t be fooled by Obama’s shell game with your tax dollars.
This next video spells it out and is hilarious, so I expect the Obamabots to get it flagged down at Youtube pretty quickly, watch while you can:
UPDATE: This is one of those posts I look back on in horror – “Joe the plumber” turned out to be the standard christian fundamentalist zealot and RWNJ everyone was warning me about…
The new plan puts caps on exective pay and golden parachutes, it also allows foreclosures to proceed (and this is a must – some people have walked away from their homes,) and it stops money from going to Acorn and other Democrat activist groups that led us to this crisis. So on the surface it looks good.
Over the next thirty years many of these mortgages will be paid off, producing potential profit, and those that aren’t are still backed by houses and property in the US, still one of the best countries in the world to live in. The bill will be posted for 24 hours before the vote, and you can bet that bloggers will be going over it with a fine tooth comb. I intend to read it, but won’t plan on commenting unless there is something egregiously wrong with it (beyond just the fact that we have to do this.)
Right now on paper these bundles of mortgages appear to have little value, but over time they will regain their worth. The similar period we saw in Japan took about ten years, if we build the energy sources we need and build our economy it could happen quicker than that here.
Much more on the deal at Washington Post:
The money would be dispersed in segments, with Paulson receiving $250 billion immediately, $100 billion upon White House certification of its necessity and the final $350 billion only after Congress has been given 15 days to object.
Firms participating in the bailout would be required to grant the government warrants to obtain nonvoting shares of stock, so taxpayers can benefit if the companies return to profitability.
Firms taking advantage of the bailout would be required to limit compensation for senior executives, with especially severe limits on “golden parachutes” at failing firms. The compensation limits will be enacted primarily, but not solely, through the tax code by reducing tax deductions for firms that pay executives more than $400,000 a year.
I like it that they are metering the money with checkpoints, I like it that there are these and other limits. What I don’t like is that there will be fees on the financial services industry as part of the agreement if they don’t turn this around in five years. Without seeing the details of how this all knits together, it’s really impossible to comment more on the plan. I await the posting of it.