Thursday, October 30, 2008

Obama tax plan- Take from the old and give to the young

When Barack Obama talks about cutting 95% of the American people, by now you must realize that that somewhere around 40% of the American people already pay no federal income tax. So it is in effect welfare.

But Barack Obama is being dishonest about his plan. He will admit he is going to give the poor their payroll taxes (FICA) back when pressed. What he expects is that you are ignorant of the fact that the "poor" already get that back in the form of the EITC-Earned Income Tax Credit.

The earned income tax is a reverse income tax model , canceling out not only the tax you owed, but giving you a refund some some who paid taxes. The mindset behind the EITC was that it was intended to provide a cash supplement to poor or near-poor taxpayers.

The concept is a variation of Milton Friedman's reverse income tax, Patrick Daniel Moynihan's "guaranteed minimum income" and yes the Nixon Adminstration, whose intent was to shield the poor Americans from the FICA tax.

The credit we give now has been expanded three times since its inception-1986, 1993 and 2001. In addition to the expansion of the credit, it has been additionally supplemented with a refundable child tax credit for the poor and near poor.

The earned income tax credit (EITC) is intended to provide a cash supplement to poor or near-poor taxpayers. The original idea for the credit is from a combination of neo-conservative Milton Friedman's "reverse income tax," the "guaranteed minimum income" idea of Daniel Patrick Moynihan and the Nixon Administration (whom I have written before were corporate socialists, and that reflected some of the same economic theories as Hillary Clinton), and an intent to shield poor Americans from the FICA tax.

The current credit has been expanded three times--once in 1986, again in 1993, and again in 2001. Additionally, it has been supplemented with a refundable child tax credit for poor and near-poor parents. As such, the original scope of the credit (refunding FICA) has been eclipsed many times over for households with children. Interestingly, for single households the original intent of the EITC remains--refunding some or all of FICA for the poor and near-poor.

What differs here is that Barack Obama is not telling you, the payroll taxes he plans on giving back to many of the 40% are already being given back. So he intends to double down and not only give you what you paid into FICA back once, but twice!

And then he wishes to expand the number of people eligible for FICA.

Who in their right economic mind knowing that Social Security faces bankruptcy in our lifetime, proposes to defund it even further ? The same people who want national health care when medicare is forecast to go broke in ten years or less.

Liberal Democrats like Hubert Humphrey and Harry Truman had a strong sense of American morality. They despised the Stalinist Left and fought to keep them out of the Democrat Party. They were sensitive to ordinary shame and guilt, the emotions that make us civilized.

Bob Dole asked "Where is the shame?" in the 1996 presidential election, the answer came out: Not in the modern Democrat Party. People without guilt or shame make merciless power mongers. Whether you realize it or not, this is the heart of PUMA today. PUMA was not as much about Hillary not getting the nomination (which the media would have you believe), but waking up to the fact that todays democratic party of Howard Deam, Moveon.org, Harry Reid and Barack Obama have lost their democratic soul and become the undemocratic party.

In the Orwellian upside-down world of the Left, community organizers disorganize communities. That is the meaning of revolution, to overturn whatever exists today in the raw pursuit of one's own power. Barack took the Alinsky learned lessons of community organization in the streets of Chicago and expanded it onto the national stage. But there is a line that must be drawn in class warfare and open vote buying from the American people. And that is the defunding of Social Security for welfare votes. It is the same ingredient of lowend greed and vote buying scheme that brought down the sub-prime mortgage system that was heavily encouraged by Senator Barack Obama, Meeks, Waters , Barney Franks, Chris Dodd, ACORN, The New Party and The Congressional Black Caucus .


Barack Obama was pushing the buttons of low-end greed which was at the core of what brought the banking industry down, low end greed and entitlement and now he wants to apply the same tactics to Social Security?

He might be willing to throw Bill Ayers, his white grandmother and Rev. Jeremiah Wright and even Joe the Plumber under the bus to obtain power; but are you willing to risk allowing him to throw you, your parents or your grandparents financial future under the bus to buy votes from the poor?

In closing let me ask you this. What in Barack Obama's actual voting record leads you to believe he will actually cut your taxes? When has he ever voted to cut your taxes as a senator? What did he do for his district as a Illinois Senator? Were the people in his district better off? Or were they victims of slumlords who had contributed to Barack Obama's campaign?

Can we take Barack at his word? He broke his word that he was committed to the public finance system. He broke his pledge to sit down and speak with Senator Mc Cain to come up with a plan together. The only thing I see in Barack Obama's past that is a constant is his willingness to use the poor to his own personal advantage.

Do not allow Barack Obama to defund Social Security at our expense for his gain.

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