Senator Obama's Four Tax Increases for People Earning Under $250k

AmericnaThinker.com ^ | October 27, 2008 | Ned Barnett

[Man50D]

confess. Senator Obama's two tax promises: to limit tax increases to only those making over $250,000 a year, and to not raise taxes on 95% of "working Americans," intrigued me. As a hard-working small business owner, over the past ten years I've earned from $50,000 to $100,000 per year. If Senator Obama is shooting straight with us, under his presidency I could look forward to paying no additional Federal taxes -- I might even get a break -- and as I struggle to support a family and pay for two boys in college, a reliable tax freeze is nearly as welcome as further tax cuts.

However, Senator Obama's dual claims seemed implausible, especially when it came to my Federal income taxes. Those implausible promises made me look at what I'd been paying before President Bush's 2001 and 2003 tax cuts, as well as what I paid after those tax cuts became law. I chose the 2000 tax tables as my baseline -- they reflect the tax rates that Senator Obama will restore by letting the "Bush Tax Cuts" lapse. I wanted to see what that meant from my tax bill.

I've worked as the state level media and strategy director on three Presidential election campaigns -- I know how "promises" work -- so I analyzed Senator Obama's promises by looking for loopholes.

The first loophole was easy to find: Senator Obama doesn't "count" allowing the Bush tax cuts to lapse as a tax increase. Unless the cuts are re-enacted, rates will automatically return to the 2000 level. Senator Obama claims that letting a tax cut lapse -- allowing the rates to return to a higher levels -- is not actually a "tax increase." It's just the lapsing of a tax cut.

[Man50D]

The income tax long ago stopped being instrument to fund the govenment. It is now used as a tool to punish and control the people. It's time to end this oppressive system by replacing the federal income tax and replace it with a national sales tax. The Fair Tax Act(HR25/S1025) currently before Congress will do so and abolish the IRS. Fair Tax ping!

[Man50D]

Fair Tax ping!

[Waco]

And he’ll throw in some changes in the std. ded., personal exempt.,indexing, and dependant exempt. Smile, now.

[maxter]

When they let Bush’s tax cuts expire, what happens to all the people who, under Bush’s tax cuts, no longer had to pay any federal tax at all? Won’t they also see a tax bill?

[snowrip]

bump for later

[no more apples]

Thanks for putting that up. (Ping for you, S_J)

[silverleaf]

good article

Yes one of Obamas advisors when challenged on their plans to let the Bush tax cuts lapse, called it “correcting the Bush mistakes”

McCain unfortunately due to his own ego and bad campaign managment, cannot even bring himself to say “Bush”

So he has let us all down by failing to drive this home

I predict the tax hikes will come almost immediately, so the Obama team has 4 years to spin it

This absoluteley contrarian handling of a recessionary economy (assuming the Marxianism of Obama and his closest friends will disregard the advice t the contrrary of a tax increase) will deepen and exacerbate the recession - possibly into a depression. First test our new “President” will fail

Get out of debt- hold onto your assets, try to ride it out for the next decade

[RayChuang88]

The income tax long ago stopped being instrument to fund the govenment. It is now used as a tool to punish and control the people.

And the sub-prime mortgage meltdown is only the latest fiasco because of that bloated and unwieldy Federal income tax system.

[listenhillary]

Bump

[grumpa]

I don’t think I have ever seen a man in public life who could lie so blatantly.

[AppyPappy]

Two years to spin it. Congressional elections come in two years

[silverleaf]

Thats good news in a sad way for many people

Because we will still be in deep deep doo doo in 2 years

Day to day life on Main Street will have changed considerably

Wall Street and Gollywood excesses will be flush with the Obama/democrat connected. Their arrogance and opulence will attract the notice of a lot more people who are being preached at to tighten THEIR belts and pay more taxes

and even some of the people stuck on “angry AND stupid” will be forced to deal with the reality that Reid and Pelosi will by then have 4 years of democrat majority control and run out of room to play the blame game

[DaveArk]

The budget should be balanced, the
Treasury should be refilled, public debt
should be reduced, the arrogance of
officialdom should be tempered and
controlled, and the assistance to foreign
lands should be curtailed lest Rome
become bankrupt. People must again
learn to work, instead of living on public
assistance.
...marcus tullius cicero 55 BC

[listenhillary]

Bump

[taildragger]

No one talks about the many other aspects of the Bush 2001 tax plan. The generous exemptions for children. Not to mention some of the more esoteric rules such as those on SSI disability (mental health etc) can finally save for retirement with an IRA, The Nazi Gold that was found was a tax free event for their Heirs, will these be rescinded as well?

Click on below to see what else may rescinded, they haven't told us what else, What will they rescind from the 2003 tax plan?

http://www.natptax.com/TRA012.pdf

[reformedliberal]

I expect them to enact complex rolling bailouts that are indexed to income. So, if someone in the lower income percentiles has a large consumer debt, they will be able to avoid mounting finance charges through government mandated refinancing, while responsible folks who paid their debts will be hit with higher rates and no public recourse.

Of course, we all remember the controversies surrounding the end of deductions for credit card interest. They will effectively reinstitute that, progressively.

[jaydubya2]

Good article. Very clear. Every voter should read this...

[Kid Shelleen]

bump for later

[FBD]

.

http://www.youtube.com/watch?v=LOtdbqjDHJI&NR=1

Barack Obama on Chicago Public Radio WBEZ-FM, 2001:

“The Supreme Court never ventured into the issues of redistribution of wealth, and of more basic issues such as political and economic justice in society... and one of the, I think, tragedies of the civil rights movement was, um, because the civil rights movement became so court focused I think there was a tendency to lose track of the political and community organizing and activities on the ground that are able to put together the actual coalition of powers through which you bring about redistributive change. In some ways we still suffer from that... “

http://www.youtube.com/watch?v=LOtdbqjDHJI&NR=1

[CGTRWK]

Hussein’s biggest economic lie of all - and the one he never gets called on and got away with in this article too - is the zero sum fantasy that millionaires and corporations pay all these taxes in a vacuum.

Every dollar the feds take is a dollar less to create new services, to buy services from other businesses so they too can expand, to make the economy expand and pay working people whether they’re earning 10K or 10M.

A $1000 tax credit that comes with a $2500 loss of income and purchasing power is not a tax cut.