That Depends On Your Definition Of Taxes
President Obama is in full damage control mode after members of his administration indicated that raising taxes on the middle and lower tax brackets was a real possibility. Republicans immediately seized on these statements as Obama floating a trial balloon and planting the seeds for tax hikes in the middle of a recession. Democrats scoffed contemptuously, reminded us that the campaigner and chief made a promise (and we all know he’s only broken one or two or three or four or damn near half of them), and touted the $13 a week “stimulus” that the government has decided not to take out of your pay check.
What no one has hitherto mentioned, is that the first salvo of Obama’s tax increases have already been launched. While he hasn’t officially raised the tax rate on anyone since taking office, he has begun implementing policies that have already increased the tax burden on the upper class. He is stealthily increasing taxes without calling it a tax increase – and not just on the wealthy. Once approved by the Senate, bills that have already been passed by the House will massively increase the burden of government on middle and lower class citizens.
While the rich will be paying an estimated $318 billion more this year than they were last year, there have been no tax increases. Instead what he has instead done is put in place a cap on the amount of deductions the wealthy can claim. Because the majority of itemized deductions are either mortgage related or charitable donations, the indirect effect of this cap punishes non-profit organizations that help the poor (they’re estimated to lose another 2% of their annual revenue as a result of this increase alone) and an already weak housing sector that’s been dragging the economy down with it.
Obama has indicated that he will probably not be renewing the Bush tax cuts in 2010. Although he claimed he was considering renewing them until the economy recovered, he campaigned to end them, been pressured by liberal Democrats like Nanci Pelosi, and since reaffirmed his desire to let them expire. The Obama administration will tell you this isn’t technically a tax increase either. We are asked to kindly ignore that that’s been the tax rate for years. We are kindly asked to ignore the fact that every tax bracket received a cut from the Bush tax cuts – meaning that even low and middle class taxes will go up. We are also asked to ignore that the income requirements for each bracket will be reduced – meaning that even though you make the same amount of money you could easily end up in a higher tax bracket. So, if you’re middle class, your “taxes won’t go up a thin dime,” but you’ll be in a higher bracket and back at a higher tax rate.
But it gets better.
If Cap and Trade manages to pass the Senate, the government will begin taxing businesses that will then pass along the price to anyone who uses electricity or depends on an industrial job. Estimates of how much this will cost the average household vary wildly between $100 a year if you’re a liberal mouth piece and $3000 a year if you run a conservative blog. With most reasonable estimates ranging between $500 and $1000 at the onset, and the Congressional Budget Office claiming $175 in 2020 (after 10 years of destroying “pollution”), there’s a pretty clear consensus that everyone will be paying more for just about everything. The kicker to Cap and Trade is that the costs passed on to consumers will most directly affect the lower class. Those who cannot afford energy star compliant homes, state of the art appliances, and hybrid cars will feel the cost of energy go up the most – and these are the same people who can least afford an increase to the cost of living. It also goes after the same manufacturing jobs that keep lower class and lower-middle class households afloat. With increased costs, those employers will have to make up the difference somewhere which will result in higher prices, cut pay, lay offs, or complete failure.
To top it all off, we’re now looking down the barrel of health care reform. Those that currently get health care benefits are mostly middle class, white collar workers. Taxation on those benefits isn’t even being debated. If the bill passes, it’s a done deal. What is still being played around with is exactly how the rest of the program will be paid for. A simple mandate, “give your employees health insurance or else!” will increase the cost of employers. Again, when costs go up, you have to make it up somewhere. The obvious solution is to slash employee pay and give them health insurance. No, you’re not taxed a dime, but your income just dropped significantly. For lower class jobs, the best proposal so far has been to tax employers 8% and give the employees the government option. If you aren’t making minimum wage, it will be passed along. If you are making minimum wage, and you’re making minimum wage for a reason, you’re going to lose your job.
All of this, of course, is being done as the economy is still struggling and unemployment rates are still rising. Obama can claim he’s not raising the tax rate, but I have to call bullshit. He and the Democrats in the House are increasing the tax burden – not just to the wealthy, but to all Americans. Claiming otherwise is a flat lie. Liberals are proving, once again, that tax and spend is their modus operandi and that they either have no concept of economics whatsoever or they’re blatantly lying to the American people.
Mr. Obama, you, together with Ms. Pelosi, are raising taxes on every sector of society in the middle of a recession. Every time you claim you are not raising taxes, you are lying to the American people. I want some fiscal responsibility. I really do. There’s an easy way to stop the deficit from exploding:
Stop spending other people’s money.
Tagged with: Barack Obama, Cap and Trade, Health Care Reform, Nancy Pelosi, Taxes


I’ve pretty much accepted that taxes have to go up to compensate for current spending levels. I’m absolutely livid that current spending levels are so high.