I don't get it. With only 9 days left until the election, it seems to me that many important points about Obama's tax plans are being missed. OK, so the media is missing them -- given their pro-Obama bias, that's understandable. But where are the GOP speechwriters and strategists? I'm not financial expert, but I have been a part of the corporate world for over 30 years. Here are a few points that I see, but somehow no one seems to be talking about....
1) Obama talks about tax credits to "95%" of the population; reducing taxes. But he only ever seems to mention PERSONAL taxes, not CORPORATE taxes. Traditionally the Democrats like to tax business, and it's pretty obvious to me that he will hike corporate taxes... after all, the programs he plans need more money to implement! So when he tells "Joe the Plumber" that he will only be taxed more if he earns over $250K, that's Joe personally. If Joe personally earns 100K, he will get a personal tax credit. But what about Joe's company? Assuming it's a small, separate legal entity, Joe's business taxes will likely rise. So Joe is correct that he still needs to worry, because he is talking about a small privately-held business. The business tax increases will more than offset his personal tax credit, and he will be in trouble.
2) Obama talks about reducing tax credits for businesses bringing jobs back to America from overseas. That's a good idea -- provide an incentive for businesses to create jobs at home. But Obama then says that he will increase taxes for businesses sending jobs overseas. While this sounds logical, there is a big problem with it -- the reason many businesses send jobs overseas is to reduce costs. Even before the recent financial bust, salaries and job-related expenses in America are very costly. While I'm not in favor of sending jobs overseas, I understand the reasoning that causes businesses to do this. If we punish these businesses by taxing them more, like Obama says he will, these companies will end up RAISING THE PRICES OF THEIR PRODUCTS! It's really very simple: they send the jobs overseas to keep costs lower; if their costs go up, so will the prices. And who will pay for this? YOU WILL, every time you buy something. This will quickly eat into your "personal tax credit!"
3) Obama's health plan has some very serious flaws that no one seems to be talking about. I'll forget about the "socialist" aspects here (after all, I'm originally from Canada, so I understand the pros and cons of such a system.) Obama loves to say how McCain's plan will cause employers to drop coverage leaving employees on their own to get insurance. This makes no sense, since the employers are not being taxed any more for their contributions. Yes, McCain plans to tax the employer health plan contribution benefit, but that will be much more than offset by a $5000 tax credit for health insurance. It seems that under Obama's plan employees will be able to "opt out" of the employer-offered plan in favor of a government-run plan. One has to assume that this government plan will be cheaper, leading many to switch. As they opt out, the employer plan will become more expensive (as the groups shrinks, the plan usually gets more costly.) For small companies having a very small group (almost 90% of American businesses) it may no longer pay for the business to have a group plan, forcing many Americans to either switch to the Government plan (what happened to choice??) or fend for themselves and buy a private plan WITH NO HELP like the McCain plan offers! Another favorite Obama complaint about McCain's plan is that the "$5000 tax credit goes RIGHT TO THE INSURANCE COMPANIES, not to you!" Well... duh! You are using the money to BUY insurance -- so obviously the money goes to the insurance company!! But you get to pick the company and the plan you like. Then the government will PAY $5000 of the premium directly to YOUR SELECTED company. (If they paid it to you, there is a chance you might just buy lots of beer and pizza -- not too good for your health ;-)
Obama's tax "reductions" are smoke and mirrors! Yes, they may appear, but along with the credits will come many increased costs, because your costs for MANY consumer goods will rise, along with your costs for health care. (By the way, unless Obama plans to limit medical care charges like some socialist plans, the medical practitioners will slowly raise prices for lab work and other related services.)
McCain is criticized by Obama and the Obama-crazed media for including big business in his tax reduction plan... Obama loves to say things like "including the Mobil-oils". But these larger corporations CREATE JOBS!! How many people will Joe the Plumber type businesses employ? Tax credits to large corporations help to reduce their expenses and encourage GROWTH -- something that is much more critical in this new economic crisis we're in.
Wake up America! Stop acting as though you're selecting your favorite "Idol" performer. Have we totally forgotten that the President is NOT an entertainment icon? Charisma, oratory, and stage presence are fine, but no substitute for experience and judgement. Obama has NO PRACTICAL management experience -- not in business and not in government. His political experience is less than ONE TERM! His voting record is totally non-involved -- most votes were "present" meaning "add my vote to the party line, whatever that means." He talks about "changing the World" but gives no details of what he means -- because although he has ideas, he has no practical experience to understand what is or is not possible. Given all of his past personal associations (and I think it's a joke to say such things mean nothing!) he has what I would call "radical" thinking. In his own way he wants "revolution." Listen, America might have its problems, but it's still the greatest country! Obama harps so much on "CHANGE" that it's obvious that he doesn't really like this country very much. And the people he has CHOSEN to associate with over more than 20 years are also not fond of America -- his preacher HATES America and rails against the country, the government, and white people. Ayers is totally unrepentant of his domestic-terrorist past, and has said recently that we need to encourage revolution through the educational system! Obama's wife recently said that "for the first time she is proud" of this country! All this shows where Obama's loyalties and ideas lie. He is not a REFORMER, but a REVOLUTIONARY. He definitely wants change, but if he could he would change most of what has made America such a great country.
I don't care what color or religion Obama is. But I do fear his ideology and especially his total lack of experience. We don't need an "American Idol", we need a strong, experienced president.
1) Obama talks about tax credits to "95%" of the population; reducing taxes. But he only ever seems to mention PERSONAL taxes, not CORPORATE taxes. Traditionally the Democrats like to tax business, and it's pretty obvious to me that he will hike corporate taxes... after all, the programs he plans need more money to implement! So when he tells "Joe the Plumber" that he will only be taxed more if he earns over $250K, that's Joe personally. If Joe personally earns 100K, he will get a personal tax credit. But what about Joe's company? Assuming it's a small, separate legal entity, Joe's business taxes will likely rise. So Joe is correct that he still needs to worry, because he is talking about a small privately-held business. The business tax increases will more than offset his personal tax credit, and he will be in trouble.
2) Obama talks about reducing tax credits for businesses bringing jobs back to America from overseas. That's a good idea -- provide an incentive for businesses to create jobs at home. But Obama then says that he will increase taxes for businesses sending jobs overseas. While this sounds logical, there is a big problem with it -- the reason many businesses send jobs overseas is to reduce costs. Even before the recent financial bust, salaries and job-related expenses in America are very costly. While I'm not in favor of sending jobs overseas, I understand the reasoning that causes businesses to do this. If we punish these businesses by taxing them more, like Obama says he will, these companies will end up RAISING THE PRICES OF THEIR PRODUCTS! It's really very simple: they send the jobs overseas to keep costs lower; if their costs go up, so will the prices. And who will pay for this? YOU WILL, every time you buy something. This will quickly eat into your "personal tax credit!"
3) Obama's health plan has some very serious flaws that no one seems to be talking about. I'll forget about the "socialist" aspects here (after all, I'm originally from Canada, so I understand the pros and cons of such a system.) Obama loves to say how McCain's plan will cause employers to drop coverage leaving employees on their own to get insurance. This makes no sense, since the employers are not being taxed any more for their contributions. Yes, McCain plans to tax the employer health plan contribution benefit, but that will be much more than offset by a $5000 tax credit for health insurance. It seems that under Obama's plan employees will be able to "opt out" of the employer-offered plan in favor of a government-run plan. One has to assume that this government plan will be cheaper, leading many to switch. As they opt out, the employer plan will become more expensive (as the groups shrinks, the plan usually gets more costly.) For small companies having a very small group (almost 90% of American businesses) it may no longer pay for the business to have a group plan, forcing many Americans to either switch to the Government plan (what happened to choice??) or fend for themselves and buy a private plan WITH NO HELP like the McCain plan offers! Another favorite Obama complaint about McCain's plan is that the "$5000 tax credit goes RIGHT TO THE INSURANCE COMPANIES, not to you!" Well... duh! You are using the money to BUY insurance -- so obviously the money goes to the insurance company!! But you get to pick the company and the plan you like. Then the government will PAY $5000 of the premium directly to YOUR SELECTED company. (If they paid it to you, there is a chance you might just buy lots of beer and pizza -- not too good for your health ;-)
Obama's tax "reductions" are smoke and mirrors! Yes, they may appear, but along with the credits will come many increased costs, because your costs for MANY consumer goods will rise, along with your costs for health care. (By the way, unless Obama plans to limit medical care charges like some socialist plans, the medical practitioners will slowly raise prices for lab work and other related services.)
McCain is criticized by Obama and the Obama-crazed media for including big business in his tax reduction plan... Obama loves to say things like "including the Mobil-oils". But these larger corporations CREATE JOBS!! How many people will Joe the Plumber type businesses employ? Tax credits to large corporations help to reduce their expenses and encourage GROWTH -- something that is much more critical in this new economic crisis we're in.
Wake up America! Stop acting as though you're selecting your favorite "Idol" performer. Have we totally forgotten that the President is NOT an entertainment icon? Charisma, oratory, and stage presence are fine, but no substitute for experience and judgement. Obama has NO PRACTICAL management experience -- not in business and not in government. His political experience is less than ONE TERM! His voting record is totally non-involved -- most votes were "present" meaning "add my vote to the party line, whatever that means." He talks about "changing the World" but gives no details of what he means -- because although he has ideas, he has no practical experience to understand what is or is not possible. Given all of his past personal associations (and I think it's a joke to say such things mean nothing!) he has what I would call "radical" thinking. In his own way he wants "revolution." Listen, America might have its problems, but it's still the greatest country! Obama harps so much on "CHANGE" that it's obvious that he doesn't really like this country very much. And the people he has CHOSEN to associate with over more than 20 years are also not fond of America -- his preacher HATES America and rails against the country, the government, and white people. Ayers is totally unrepentant of his domestic-terrorist past, and has said recently that we need to encourage revolution through the educational system! Obama's wife recently said that "for the first time she is proud" of this country! All this shows where Obama's loyalties and ideas lie. He is not a REFORMER, but a REVOLUTIONARY. He definitely wants change, but if he could he would change most of what has made America such a great country.
I don't care what color or religion Obama is. But I do fear his ideology and especially his total lack of experience. We don't need an "American Idol", we need a strong, experienced president.
posted by Hershel Belkin | 8:21 AM
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