Remember when Bush proposed a tax cut to revive the flagging economy back in 2001? Remember the Democrat criticism of that plan?
Here, let me remind you of the Democrat talking points in 2001, by using Tom Daschle’s own words in February of that year:
How much are we willing to base this entire economic plan on, on projections that are no better than the weather forecast last night? And finally the imbalance – you know, if you make over $300,000 a year, this tax cut means you get to buy a new Lexus. If you make $50,000 a year, you get to buy a muffler on your used car.
According to Democrats, the Bush 2001 tax cuts netted the “poorest” of workers somewhere between $250.00 and $350.00. Barely enough, Democrats said, to purchase a used muffler for your used car. Of course, this was bogus. Families received an additional tax credit of $1,000.00 per child, and people making below $35,000.00 per year didn’t have to pay any income tax at all.
But the wealthy got a substantial tax break – something like $46,000.00 per year. OK. Fine by me. What was the result? nearly six years of economic growth, and unemployment that sank below Bill Clinton’s best efforts.
And what have we gotten with Obama? A payroll tax increase that provides anywhere from $50.00 to $150.00 more per year to the lowest working families – and no change in the child tax deduction.
Wow. I’m really underwhelmed. Katie bar the door. Taking inflation into account, that means they can probably still only buy a used muffler to put on their used car. Or, maybe they’ve officially upgraded to a new muffler, I can’t be sure.
For the quasi-wealthy? A whole $800.00. Gosh. That’s a muffler and a transmission flush all in one setting!
Contrast this with the Bush income tax refund check that the top-end tax-payers received that was something like $1,200.00. Depending on where you live, that’s nearly 2 months worth of unemployment compensation. Obama’s startling beneficence clocks in at a little over half that amount, AND you don’t even get it as a bulk payment. So, I guess I’m not going to spend it all at once because – well – I can’t. Sucks to be me…and the retailer hoping for my disposable income.
But, the most insidious thing about this, and I cannot get a definitive answer one way or another, is if this minor increase in income is exempted from your income tax. What Obama has done is reduced your FICA tax, but there is no mention as to if this increase in pay is somehow also exempted under the normal income tax rates. The silence here is deafening, which tells me that, come April 15th, that tax “cut” you received will be little more than an illusion.
That’s not all.
FICA is what is taken out of your check to bolster Social Security and Medicare. By decreasing FICA, all Obama is doing is taking MORE money away from the elderly – a group of people that is steadily expanding as the Baby Boomer Generation is reaching the age where they can start receiving federal retirement benefits – when the pool of people paying into these programs is on the decrease. Not to mention that Social Security has been used by Congress as a savings and loan (with far, far more emphasis on the “loan” part of that title) to fund a whole bunch of social programs for decades. If you do your research on the Clinton “Social Security surplus”, you discover that this “surplus” was made up of short-term loans used to pay for the rest of the federal budget (also known as “intergovernmental debt”).
So, in short, Mr. Messiah is robbing Peter so he doesn’t have to shake-down Paul as often. In the end neither Peter or Paul get jack-squat.
As for the claim that 95% of Americans or American families receiving a tax cut, that’s about as valid as Bill Clinton putting 100,000 cops on the street (with a $12,000.oo per year salary). It’s kinda hard to get FICA money back when you’re unemployed, or on public assistance.
Then again, Obama has a tendency of making up whoppers when it comes to his tax pledges. Consider the following quote on September 12th, 2008:
Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.
That “pledge” went up in smoke the minute they started to increase the taxation on tobacco products to basically fund an expansion in SCHIP, a Medicaid program for children (which, in itself is a bogus statement – adults in Michigan are enrolled in SCHIP). The largest consumers of things like cigarettes are low income wage earners.
So he lied. No big deal. Everyone expected him to lie.
People wanted “Change”. Well, here it is.