To Cut or Not to Cut, That is the Question

He's Found his way back Again

It seems that Republicans and Democrats alike may not agree with President Obama's plan to cut the Bush Tax Cuts. In the past months, former advisers, and current members of his administration have spoken out and asked the President to leave the ta cuts alone. Even more recent, The Heritage Foundation has released the results of a study they conducted that implemented all of Obama's planned tax increases and their effect on the economy. This report is truly astounding and truly terrifying.


It's All About Taxes

The thought may have been, well if Obama won't listen to Republicans, maybe he will listen to members of his own party and his own administration. Maybe that's why when Barack Obama's former Director the Office of Management Budget, Peter Orszag, went public with his admission that he believes that all tax cuts should stay in place, at least temporarily, it made waves. Republicans used this as an I told you so moment while the White House down played the event and announced that the President had not changed his mind. The next push then came from Federal Reserve Chairman Ben Bernanke who also stated that he favors extending the Bush Era Tax Cuts sighting fears of a double dip recession as his reasoning. Again Obama said no, even though these are two highly respected men in the fields of economics, and both of which have been or currently are in his administration.

Perhaps more startling than all of that is the Heritage Foundation Report which reported the results from an in-depth study of Obama's tax plan. Obama's full tax plan includes: eliminating tax cuts for individuals who make more than $200,000 a year and families who make more $250,000 annually, higher taxes on capital gains, higher taxes on dividends, and the return of the death tax. Is it just me or is that a lot of taxes? Even scarier is the affect these taxes will have on our economy.

According to the Heritage Foundation Report from September 20th, 2010, the affect of the Obama tax plan would:

• eliminate 693,000 jobs every year through 2020
• drain $726 billion from disposable income, $38 billion from personal savings, and $33 billion from business investments
• cost the average business owner more than $3,500 more in taxes
• cost 49% of all seniors (with an income below $200,000) $525 more in dividend taxes
• cost 25% of all seniors (with an income below $250,000) $742 in higher taxes 

This is simply a plan that America could even afford during times of prosperity and plenty, and is almost a laughable proposal during economic hardships like we currently face. But this is not a laughing matter because Obama is serious in his push for these so called reforms. We cannot let him take these jobs and take this money from people who already have neither. This proposal is ludicrous and should never have even been mentioned during the time of the Great Recession.

Later,
Cody

(Photo: Courtesy of the Associated Press)