(My response to an editorial in the Daily-Tribune today)
A small price to pay
Danielle Swanson: Staff Writer, The Daily Tribune Cartersville Georgia
Tuesday, Oct 21, 2008
With the introduction of Joe the Plumber to the debate last week, John McCain brought up what he sees as a plague to the American small businessman. Joe and thousands like him, he argued, will not be able to buy their dream businesses because of Barack Obama’s planned tax increases. This will cause our whole nation to go in a spiral and make our economy sink lower, rather than higher — a trickle down of increased poverty.
Joe The Plumber hit a nerve I think!
Gimme a break.
The truth is that singles making $200,000 & Couples making $250,000 will pay higher taxes under Obama’s plan. Almost 50% of small businesses in the United States makes this level of income and these people file it under their personal income taxes making them eligible for the Obama tax increase.
Obama’s plan does not add some huge new tax to the top 5 percent. It simply takes away the cut that President Bush gave them, putting them back to the tax rates of the Clinton years. Plenty of businesses were started during that time.
This is not the governments money! “It simply takes away the cut”…is just further proof that Democrats do not believe that that you should keep the money you earn. The government should decide how much you need. How does that sound to you?
In fact, according to data from the Small Business Administration, 5.9 million new businesses opened while Clinton was in office, with 1998 seeing a record 898,000 new businesses created. During 2005, under President Bush and the tax cuts, only 671,800 new businesses opened. Seems like those tax cuts didn’t help that many plumbers.
Of course new businesses will open regardless of who wins. The issue is how many people will they be able to employ. More taxes and more burdensome regulation by Obama will lead to fewer jobs being created by these small business owners. It will also lead to more corporate failure and more U.S. businesses moving operations overseas to escape his projected increase in the capital gains tax rate.
Obama argues that many of those new businesses will be helped by his tax cuts. Only 5 percent of Americans will see an increase, and from the information I’ve found, compared with the rest of us, they can afford to pay.
It is this very 5% that are the leaders in job creation in this country. “Poor” people never go to another “poor” person to get a job! I spoke with a small business owner recently who is already having to let people go. What will happen if his tax rate goes up?
Currently, the top 20 percent of wealthiest Americans hold 84 percent of the nation’s wealth; the top 1 percent holds almost 40 percent by themselves. That means that the other 80 percent of Americans hold only 16 percent of wealth.
Danielle you need to remember that this is not the “Nation’s” wealth. That money was earned by the collective group of individual citizens that live in the United States. Whatever we earn belongs to us as individuals not the government. Honestly I do not care how much money someone makes. Let them keep more of theirs and let me keep more of mine whatever that equates to. I feel a whole lot better giving that money to my church and letting them help people than I do sending more to Washington.
Bush’s policies have added to that inequality — while the top 1 percent was experiencing income growth of 11 percent, the bottom 99 percent had less than 1 percent of growth per year from 2002-2006. Yes, some of this money may “trickle down” as the Republicans believe, but many more are left standing with their umbrella waiting for a flood that’s never coming. Even while they are taking billion dollar buyout deals from the government, reports of Wall Street fat cats partying it up on our dollars are surfacing. It seems like they can afford to lose that tax cut.
“Trickle Down” economics has worked under Kennedy, Reagan, and Bush. The problem is that the Congress under both the Republican and Democratic party has not kept spending under control.
In reality, the tax cuts to the rich probably never should have been given in the first place. Bush was the first president in history to make such a cut during wartime. There’s a reason that past presidents hadn’t cut taxes while our nation was at war: fighting in another country takes a lot of money! As we spend billions down the pipeline to Iraq, we need at least some sort of income as a country. Even me, as little economic education as I have, understand that if we’re spending more in one area, than we either need to cutback in another area or increase revenue.
“Tax cuts to the rich should never be given”……It is not your money! A better answer would be to eliminate all federal taxes and move to a consumption based tax system like the FairTax. The editor of Kiplinger magazine said recently that the best way for this country to move out of this recession is to implement a consumption tax system.
But you don’t have to take my word for it – ask the U.S. Treasury. According to a Washington Post article in 2006, the treasury said that the country either needed to revoke the tax cuts or decrease spending to protect the economy.
Finally we agree…Decrease Spending.
In the ideal world, none of us would have to pay any taxes. It’s not fun having the government take our hard earned dollars. But I like having roads to drive on, schools for my children to attend, the knowledge that I’m safe and free. And hey, if that cost me a few dollars, it’s worth it.
Democrats only answer is to take from one group of people and redistribute that money to another group. This class warfare and wealth envy is killing this country and it putting us on a path towards Socialism at an alarming rate. We need to stop punishing people for being successful and implement a tax code that treats all people equally. This could be accomplished by the FairTax but it would strip the Democrats of their control of people in the lower economic tiers. Obama continually refers to the fact that he is giving 95% of Americans a tax cut under his plan. This amazes me since the bottom 48% pay no income taxes. His plan is designed to “Spread The Wealth” in this country and payoff that bottom 48% so they will continue to be loyal to the Democratic party.
Danielle Swanson is a member of the Bartow County Democratic Party and a master’s degree student at Kennesaw State University.
I am a member of the Republican Party and an elected member of the Bartow County School Board . I am a Master’s degree student at Liberty University.
Learn More About the FairTax!