So, Barack Obama insists that 95% of us will get a “tax cut” under his plan. Yet, as of 4 years ago, one third of those filing tax returns bore ZERO tax burden. That’s a deficit of nearly 30% he must account for!
So, how to solve the math problem? Why, change the rules and/or definitions of the game! AND apply the new defition to those with no tax liability! Tax Credits = Tax Cuts … There, problem solved!
And because 6 out of 7 of Obama’s proposed tax credits are refundable to those without tax liability, this becomes income redistribution, pure and simple.
The Tax Foundation estimates that under the Obama plan 63 million Americans, or 44% of all tax filers, would have no income tax liability and most of those would get a check from the IRS each year. The Heritage Foundation’s Center for Data Analysis estimates that by 2011, under the Obama plan, an additional 10 million filers would pay zero taxes while cashing checks from the IRS.
The total annual expenditures on refundable “tax credits” would rise over the next 10 years by $647 billion to $1.054 trillion, according to the Tax Policy Center. This means that the tax-credit welfare state would soon cost four times actual cash welfare. By redefining such income payments as “tax credits,” the Obama campaign also redefines them away as a tax share of GDP. Presto, the federal tax burden looks much smaller than it really is.
So hopefully you’re wondering now: whose income is going to be redistributed? The answer: the other 5%. That would be the 5% that already pay over 50% of the current federal tax burden according to the IRS’s own records. And to pay for the rest of Obama’s spending proposals? Don’t worry, Barack will be paying the rest of you in the top 50% a visit, perhaps sooner than you expected. Even if he reduced our presence by 75% in Iraq, it still wouldn’t be enough to pay for everything he wants.
Please do read the whole WSJ review. And talk about it with your friends and neighbors. The numbers just don’t add up. Increasing taxes on anyone right now, espeically those that actually create the jobs in this country, in this current economic climate is a very bad idea.