By Bernie on 21 Oct 2008
The world is filled with seeming coincidences. Mr. Obama has stated that only people who make more than $250,000 annually will see a tax increase and then I get this email from one of the banks I do business with:
Recently, the U.S. Congress approved an increase in FDIC coverage to at least $250,000 per depositor, per institution until December 31, 2009.
The FDIC provides insurance to at least $250,000 separately on deposits with different ownership categories and in different bank institutions. Capital One’s two bank institutions, Capital One Bank (USA), N.A., and Capital One, N.A., are insured separately. You can find your bank institution on your paper statement.
For additional FDIC insurance information, we encourage you to visit the FDIC’s
Web site—www.fdic.gov, or call 1-877-ASK FDIC (1-877-275-3342).
Could it be that the feds realize that after Obama whacks those making more than $250,000 a year with onerous tax increases no one will have more than 250 grand to put into a bank account anyway? Just thinking out loud.
Speaking of increasing taxes on those making more than $250,000 a year, Barack Obama has pledged that "We are going to cut taxes for 95 percent of Americans."
Many other bloggers have already commented on the fact that 30% to 40% of Americans already do not pay taxes and that the only way for them to get a refund is for the government to give them a tax credit or as it's really called when you give money to people who do not pay taxes: welfare. Actually the number of Americans who pay no income taxes is much higher than 40%. In 2005 only 90.5 million individual tax returns showed that they paid or owed federal income tax for that year [Wiki]. That means that 50% of American households pay no taxes at all [The Tax Foundation]. That's it - only 50% of Americans pay taxes.
The top 5% already pay over 60% [[National Taxpayers Union] of all the income taxes in this country so for the other 50% to get welfare and the remaining 45% to get tax cuts means that the top 5% will have to pay almost 100% of the taxes. Obama likes to speak of fairness in regard to taxing the rich. I do not mind paying my fair share, what I object to is paying everyone else's share.
The problem in this country is that people who pay no taxes can vote to increase taxes on those who do. This is unfair. I think we should have a progressive voting system. If the top 5% of taxpayers provide 60% of income tax revenues then they should have 60% of the vote. If you don't pay taxes why should you vote at all? After all, all you do is take, take, take of the resources and services of our country while giving nothing, nothing, nothing back in return. It's only fair.
Every year the top 5% pay a larger and larger share of the taxes. In 2001 it was 53.25%, and increasing every year, in 2006 it was 60.14% [NTU]. Now Mr. Obama wants to raise that even more.
Hey, I know it's tough if you are out of work and have bills to pay or if you are working but the job hardly pays the rent or if luck has turned against you; I've been there, I've had to buy groceries with food stamps and had to struggle to pay bills and keep my head above water - I get it. But soaking the rich does not make the situation better.
In fact, it makes everything much worse. I've written before that high corporate taxes have caused me to move some of my operations overseas because the business tax environment is much kinder. So it is citizens of other countries that get employed, make money, pay their bills and buy their groceries. High taxes, instead of helping the country, penalizes it. If taxes were lower, I would hire more Americans, pay more rent in America, and spread the money I am making among more Americans. With lower taxes, fewer Americans would need welfare, food stamps, and other services. They would have the money to pay for what they needed and without the indignity of getting handouts. And with less handouts, it is easier to lower taxes even more.
Those who ridicule trickle down economics obviously have not thought about no-trickle economics. Tax me enough and the money you tried to steal from me gets spent in other countries to inure to the benefit of non-Americans.
Britain in the 1950s and 1970s had a brain drain with the mass exodus of scientists and other experts to America to escape high taxes. So contrary to the notion that you can soak the rich all you want, after all they're not going to stop making money, in actual fact you cannot. Those who have skills to earn Great Googly Moogly amounts of moola have no problem moving to where the money is taxed least.
If those who pay no taxes keep on voting for more and more benefits and higher and higher burdens on those who do pay taxes, this country will be left with non-tax paying parasites asking for benefits which cannot be supplied since there will be no one left to pay the taxes for them.
In nature most parasites suck only enough blood to make sure the host survives to continue servicing their needs in perpetuity. The blood suckers in Congress are stupid enough to completely kill the host.
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