Democrats Play Limbo With Middle Class, Obama’s “Trickle Down” tax philosophy, “How low will he go?”

Posted: October 31, 2008 by Rick Hogaboam in Politics
Tags: , , , , , , , ,

Obama, over and over again, said that he supported tax increases ONLY for those with a household income of $250,000 and above. Well, I don’t make that and would consider that amount as above middle class, but still don’t support tax increases unless absolutely necessary.

Anyhow, I took careful note when I heard Obama recently say that people making $200,000 and above will be subject to tax increases, not to mention an increase in capital gains taxes, the continuation of the death tax, etc, etc, etc. Obama realized that everyone is responding to all of his promises in social programs, etc with a simple question, “How are you going to pay for it?”. Obama offers rhetoric and says that he will pay we go, etc. BUT DO NOTE: $250,000 shrunk to $200,000

The limbo continues with Joe Biden, who this week said that Obama will only raise taxes for households making…$150,000….yes, you got it, the number has gone from $250,000 to $150,000….just shrunk by a whole $100,000.

The limbo music plays on and New Mexico Governor chimes in just recently said that Obama will only raise taxes for households making…$120,000 and more…yep, another $30,000 drop in just a few days.

Obama talks a lot about the shrinking economy, shrinking house prices, etc…while he goes on doing some own of his own shrinking…the shrinking of the number of people who will get tax relief. I just find this game of limbo pretty funny. The music plays on, “How low can you go?”. Believe me, an Obama-Reid-Pelosi led government will increase the minimum wage to who knows where, while at the same time shrinking the definition of the middle class and subjecting them to more and more taxes, while severely raising the taxes of the wealthy, not to mention capital gains, etc. What will this look like for the economy?

– Higher taxes on corporations + Increased minimum wage = Increased Retail Prices + Increased Layoffs….which all means that the cost of living and rate of inflation would exceed whatever increases were given in the minimum wage.

– Higher taxes on corporations + Increased minimum wage = the death of the middle class…which means that we will move towards a two class system (rich & poor). The rich will be taxed and their money will go to the “poor” in all kinds of entitlements.

– Anyhow, I much preferred Ron Paul and Mike Huckabee’s economical philosophies of not punishing productivity. We are moving more and more into a nanny state. I am in a situation right now where I am qualified for certain entitlements because of our household income. What defies common sense is that if I worked harder for a raise or my wife wanted to do some part-time work for some extra savings, etc….we would actually be worse off and lose money. I would need a really large raise to even see a net gain in my finances with the current system. Does this system encourage increased productivity? NO.

I do appreciate the health care my children get from the state of Idaho…I really do…but if I get a raise, then I would be on my own with our kid’s health care and end up worse off than if I were to just remain as is. This creates a dependency upon the government that is unhealthy. It creates a sense of entitlement to those who have no incentive to work harder and make more. I also receive an earned income credit, which I wouldn’t if I made a little but more. The earned income amount that came back to me would even exceed a 10% raise. A 5% raise would disqualify me from the earned income credit, which would mean that I have less money in my pocket at the end of the year, though working hard and earning a  raise. Does this make sense to anyone?

If Obama hands out more and more to folks like me, it will actually destroy the American dream of working hard, earning more, saving more, and passing down an inheritance to the future generation. Yeah, I’d enjoy free health care and have a sufficient quality of life if I just leached on the redistribution of the wealthy through our gov’t handed out to me, but is that where we really want to go? What will happen when the wealthy become scarce…how will the government sustain all of their entitlements?

We need some brave politicians who are willing to take bold steps to reform our entire tax code. Paul and Huckabee were willing, but didn’t get the nomination. Obama’s plan isn’t good, and McCain’s plan is better, but far from where we need to be.

As for me, you wonder, I am looking at ways in which I can invest and save that will reap an increase that will exceed the losses of losing “entitlements”. It is a tricky thing and I don’t know if I will be able to pull it off. Perhaps an employer would be so kind as to postpone annual raises with the promise of a large sump raise 5 years from now, which would actually provide a net increase minus the entitlements of health care, etc. My only fear is that the bar of entitlements will continue to grow to the point where it is nearly impossible to jump from one class to the other. The divide will be so wide and vast with the elimination of the middle class that I will simply have to accept the fact that I am a have not, have no power to really change that, and continue to look to the gov’t with my mouth open begging for food.

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