- Higher taxes on middle class families
- Higher taxes on small businesses
- Higher taxes on the wealthy
- Higher unemployment
- Lower personal wealth
- Lower GDP
- Lower GNP
- Less liberty and more government control over our lives (Obamacare, anyone?)
Sunday, November 18, 2012
After I read this article: http://www.foxbusiness.com/on-air/willis-report/blog/2012/11/15/half-your-paycheck-government-2013 I just have to say “thanks” to all those who voted for Obama. You've made it even more difficult than it already is for families to get by. But, many of you are fine with that because you don’t have to pay those taxes.
What you’re not understanding is that deficit reduction by higher taxes doesn’t solve the problem. First of all, very little of the money will go to deficit reductions. In fact, it is projected that the Obama administration will continue to have trillion dollar deficits for the next 4 years making the national debt over $20 trillion by the end of his second term. Most of the increased tax money will go to more entitlement programs. Giving more money to the government so they can have all these entitlement programs for people that don’t pay taxes does not stimulate the economy. It stifles it. It causes more people to have to need entitlements, because they lose their jobs and can’t support their families.
You see, what’s going to happen with all these taxes and government mandates like Obamacare is that they’re going to lower profit margins for businesses, especially small business that employ the majority of Americans. When a business loses profit, they have less money to pay employees. Many will have to lay off employees. Thus more unemployment and more people on government entitlement programs.
What you’ve guaranteed us under another Obama administration is this (we’ve already seen this beginning in the first administration):
Obama says the wealthy need to pay more taxes to help reduce the deficit. The wealthy can afford it, he says. But, history has shown that when the wealthy get hit with higher taxes, they take steps to mitigate the impact on their wealth. States that raise taxes on the wealthy see them leaving their states. Same goes for businesses. They either uproot from where they are and move to more hospitable states or they lower their costs (aka employees).
I have never been employed by a poor person. I’ve either been employed by a wealthy person, ie. a small business (remember, according to Obama, wealthy people are those that make $250,000 a year) or by a company. Making it harder for businesses to hire people is not how you stimulate the economy.
In fact, just the opposite is true. Lower taxes on businesses would enable them to hire more people. More people with jobs means more money being paid out. More money being paid out means more spending. More spending by individuals, NOT by the government, is what stimulates the economy. More spending by individuals is also the best way to lower the deficit. Our government wouldn’t have to borrow from China to pay for all these entitlement programs, and people spending their paychecks would increase sales tax and other revenues.
Obama has it backwards, and it’s going to make living in this country very difficult for the next 4 years. But every time he talks about the economy, he’ll just keep blaming the Bush administration, “Look what we inherited!!”
I fear for what our children are going to inherit.