The most left-wing Democrats in American history have gathered in Charlotte.
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Checonomics and the Coming Crash of 2013
CBO reports that in 2009 the top 1% of income earners paid 39% of all federal income taxes, three times their share of income at 13%. That was more than the bottom 95% of income earners combined! In fact, the bottom 60% of income earners, as a group, paid less than 0% of federal income taxes. Instead, as a group, they received net payments from the IRS.
Yet, President Obama has spent the past four years barnstorming the country, calling for still more tax increases on “the rich” because they allegedly do not pay their fair share. He continually tells us that Warren Buffett pays a lower tax rate than his secretary. But CBO reports that the average federal tax rate paid by the top 1% in 2009 was 29%, counting all federal taxes. Yet, the average federal tax rate paid by the middle 20% of income earners was only 11.1%, and the average federal tax rate paid by the bottom 20% of income earners was 1%.
This rhetoric is classic Marxist extremism. But it has already begun to be implemented into federal law. On January 1, the top tax rates of virtually every major federal tax are already scheduled to increase under current law. That is because the tax increases of Obamacare go into effect then, and the Bush tax cuts expire, which the President refuses to renew for the nation’s job creators, investors, and successful small businesses.
As a result, the top two income tax rates will jump by nearly 20%, the capital gains tax rate will soar by nearly 60%, the tax on dividends will nearly triple, the Medicare payroll tax rate will rocket up by 62% on these disfavored taxpayers, and the death tax will rise from the grave with a 57% rate increase.
This is all on top of the corporate tax rate, which at nearly 40% on average (counting state taxes) is the highest in the world, except for the socialist one party state of Cameroon. Yet, under President Obama, there is no relief in sight. Instead, he has spent his presidency calling for still more tax increases on businesses, large and small, and on investors, reflecting further classic, anti-business, left-wing extremism. If President Obama’s proposed Buffett Rule is adopted, capital gains taxes would increase by 100%, with the fourth highest rate in the world, to go along with his world’s worst corporate rate.
In Toledo, Ohio, on Labor Day, President Obama alleged that Mitt Romney’s economic plan “undoes reforms that are there to prevent another financial crisis and bank bailout. He wants to get rid of rules that are there to protect our air and our water, and workers’ rights, and protections to make sure that health care is there for you when you get sick.” What he is saying in plain English is that if he is reelected as President, you can forget about reducing regulatory burdens on jobs creators and businesses.
Instead, his plan is for still more regulatory burdens, bigger and badder than ever. With the nation suffering the longest period of unemployment over 8% since the Great Depression, President Obama recently announced that his top priority in a second term would be global warming!! His EPA is already busily implementing regulations to shut down traditional energy production and use to counter mythical global warming that will cost the economy trillions more, still another effective tax increase.
When these Obama regulatory burdens join with the comprehensive tax rate increases, and the runaway federal spending, deficits and debt, the result will be another recession next year. Unemployment will then jump back into double digits, the deficit will rocket over $2 trillion, poverty will climb to still more record smashing highs, and real wages and incomes will plummet to new lows.
Soviet Style Propaganda?
In the old Soviet Union, the dictatorship would use its total control over the nation’s media to bludgeon the public with propaganda proclaiming and celebrating the exact opposite of reality. And now we see that same rhetorical style in the Obama campaign.
President Obama told the crowd in Toledo on Monday, that Mitt Romney’s tax plan “hikes taxes by nearly $2,000 on the average family with kids in order to pay for a massive tax cut for multi-millionaires.” But the truth is that Mitt Romney’s tax plan proposes numerous tax cuts for the middle class, and no tax increases for anyone.
President Obama further regaled folks in Toledo with the allegation that Romney/Ryan’s Medicare reform plan involves “ending Medicare as we know it by giving seniors a voucher that leaves them to pay any additional cost out of their pocket,” which would mean a “loss of up to an additional $6,400 a year for the same benefits you get now. But the truth is that Medicare as we know it includes Medicare Parts C and D, and that all the Medicare reforms proposed by Romney/Ryan would do is extend to the rest of Medicare, the old-fashioned Medicare Parts A and B, the same policies that have worked so well to hold down costs through choice and competition in the more modern, highly popular, Medicare Parts C and D. Those policies involve a bidding auction by private health insurers to provide the same coverage as Medicare, with Medicare giving seniors enough to pay the premiums for at least two of the bidding plans in their local area, with zero extra out of pocket costs, let alone $6,400 per year per family. This propaganda involves yet more failed leadership by the President on the entitlement issue.
This is all the tip of the iceberg on the left-wing extremism of the Obama campaign and today’s Obama Democrats. Obama is celebrating the taxpayer bailout of the auto industry, with a likely loss to taxpayers of $23 billion, and promising still more such crony socialism in a second term, with the socialist policy of the federal government now owing 26% of General Motors, and the unions owning more of GM and Chrysler.
The Obama campaign and the Democrat convention are celebrating abortion, and gay marriage, and the imposition of the health insurance mandate on the Catholic Church forcing them to pay for abortion and birth control pills contrary to their faith. Thus, Obama and the Democrats have declared war on social conservatives, and the pro-family, traditional values movement.
The Obama Administration tried to plant American guns in Mexico to use as a talking point in favor of gun control, and American and Mexican law enforcement officers died as a result, in the so-called Operation Fast and Furious. One more Supreme Court appointment by President Obama, and the Second Amendment Right to Keep and Bear Arms would be lost to the American people.
But the choice belongs to the American people. Do we really want Che Guevara as President of these United States?
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
Was the President done in by the economy, or by the politics of the economy?