“A chicken in every pot” is the temptation waved under the noses of voters by politicians of every political stripe. It’s an alluring promise. Little wonder that the average life of a democracy is a mere 200 years.
Americans are smart enough to realize that there is no such thing as something for nothing. Barack Obama was elected on the idea that he was going to reward 95 percent of us at the expense of the top 2 percent, those making more than $200,000 per year. What could be wrong with that?
It was an easy sell to the 95 percent on the receiving end of that promise. Now it’s time to deliver the goods in the form of tax cuts for all but the very wealthy.
So, just how much is that tax cut really worth? According to the Associated Press, in 2009 most workers will see an additional $13 per week in their take-home pay. In 2010, the credit will be worth about $7.70 a week.
Before you begin celebrating your windfall, the credit is phased out for higher-income taxpayers, defined as individuals who have a modified adjusted gross income of between $75,000 and $95,000 a year and married couples filing jointly who make between $150,000 and $190,000 a year. Yes, even if you work in an expensive area of the country like New York City or Los Angeles, where your property tax is larger than most people’s house payment and your water bill is higher than your car payment, you will not see a return on your Obama investment.
There will be additional tax cuts (i.e., handouts) to workers on the lower end of the spectrum who pay no income tax at all. A family making $35,000 that presently gets a refund (handout) of $2,900, will get another $1,200 per year. A family that earns the medium income of $50,000 a year will no longer pay tax and receive a refund of $40.
Most working people I know would rather have a raise or the prospect of a better job than Obama’s puny little tax cut or a government handout. If the truth be known, most people will be happy to hold on to the jobs they have now.
Just look at what Obama is doing to pay for those tax cuts. The top 2 percent of filers (as of 2006 that was 3.8 million folks) are going to get a huge tax increase.
Tax increases in a recession are dumb. Therefore, Obama’s tax increase will not come until 2011, when Obananomics is supposed to have cured this recession. Dream on! Most sane individuals (not the government) make their economic decisions based on what is coming down the road so “the rich” are not running out and spending money. They aren’t buying expensive yachts, planes and other luxuries, so who gets hurt? The people who work in the industries that make all that stuff.
Furthermore, two out of three of those filers who make more than $200,000 a year are small businesses or investors. Small businesses are hunkering down and, in this environment, investors are keeping their money in their pockets. Can you blame them?
More bad news. Obama has announced that the rich will no longer be able to take the full value of their tax deduction for home mortgages and charitable donations. Another blow to the housing market and people who work for charitable organizations.
Yes, those puny tax cuts come with a hefty price tag, so hold onto those wallets because what Obama giveth with one hand, he takes away with the other.
Just a year ago, when oil prices were going through the roof, consumers began to realize that the price of energy affects everything we own or use.
In the midst of this recession, and a 10-year cooling trend, Obama has declared war on carbon emissions and will impose a cap-and-trade system that will raise another $80 billion in taxes per year that will trickle down to everyone. The George C. Marshall Center ran the cost last year and estimated it to be $1,100 for the average household, rising to $1,437 by 2015.
Not to worry, this will be offset by Obama’s “making work pay” tax credit that will give some individuals up to $400 ($800 for married couples). Do the math. Even if you receive the maximum, you end up with less.
You voted for change. Under Obamanomics, hold on to the change in your pocket. That may be all you have left.