Do the rich pay their fair share?
Barrack Obama states that he wants to raise the taxes on anyone making $150,000 (top 5% earners) and above, and lower the taxes on anyone making below this. To the individual who makes less than $150,000 a year, this sounds fair. Never mind that this 5% group consists of many small business owners that already pay 60% of all income taxes and 162% of their fair share. The group (95% of taxpayers) that Obama wants to give a tax-cut to, currently earn 63% of all income, and pay 40% of all taxes, which is a fair share of taxes paid of only 63%! This group does NOT need a tax cut, they don't pay their fair share now! Is this fair to the group currently paying 162% of their fair share? This is nothing but a distribution of wealth ploy (socialism). Remember, Bill Clinton ran on this same promise (a middle-class tax cut), but never followed through when elected - neither will Obama.
To increase taxes during a period of sluggish economy (or recession) would be a very bad move. These earners, and small business owners, do not put their money under their mattresses, or stash it in accounts offshore. They invest it in their own businesses, and provide the majority of the capital investment in this country. You take away this business expansion and capital investment sources, and you're going to see higher unemployment, less business expansion, fewer new companies, and a deep recession, if not a depression. As JFK, Reagan, and Bush have learned, decreasing taxes puts more money in the Treasury coffers than increasing taxes. In fact, when President Bush lowered taxes, it resulted in an increase of 20% more tax money in the treasury coffers than occurred during the Clinton Administration. Increasing taxes, decreases capital investment and the incentive to work harder (or expand one's business) and reduces the overall amount of taxes paid into the Treasury coffers.
Add Obama's intention to raise Corporate Taxes (we already have the second highest corporate tax rate in the world), raise the *Capital Gains tax (from 15% to 28%), and removing the cap on the amount of income that is subject to Social Security taxes, and all economic expansion in this country will come to a screeching halt! You think the economy is sluggish now! Just wait.
* In one of the Democrat debates, ABC news anchor Charlie Gibson asked Obama "don't you realize that increasing the Capital Gains tax would result in less tax money collected and would be bad for the economy?" Obama's answer was "well, it's a matter of fairness." This man is willing to destroy the economy for what he perceives as more fair??!! If this one statement does not point to this man's total lack of inexperience and lack of any economic policy knowledge, nothing does. Amazing!
A couple of tax related interesting articles worth reading, are: