This will take more than a sound bite. Have you heard of the Bush Tax Cuts? In 2001 George Bush began cutting taxes across the board including Capital Gains Taxes. Nine months into the Bush Presidency the Attacks of 9/11 occurred.
George Bush was not my favorite President, I am a Reagan man and, of course, George Washington. Bush was too much of a big government, big spender to suit me. His policies were too intrusive into privacy to suit me also.
Nevertheless, George was 10 times the President that President Obama is. The average unemployment rate during the Bush 8 years was 5.26%. That is better than the best year Reagan had, not to mention Obama’s dismal record.
From day one Obama has sounded like a broken record in an unrelenting pursuit to eliminate the Bush Tax Cuts. With the November Election looming, Obama’s desire to raise taxes is evolving to just affect the so called rich, those earning $250,000 a year.
If Congress would give him what he asks for, his brilliant plan would raise enough revenue to pay the interest on the National Debt for a week. Of course that would be wiped out by the Obamacare Tax and it hits those earning less than $120,000 the worst.
The so called rich are mostly small business owners. Raising taxes affects them, of course, but it affects much more than them. The owners have expenses; to wit utilities, labor, taxes, fees, materials, etc. In the old days if expenses went up a businessman could simply raise prices. Back then all the competitors would have to raise their prices too. Not so now, 70% of the automobiles sold in the U.S. are manufactured overseas. America now has the highest Corporate Tax in the World. In addition, Unions, EPA & OSHA Regulations, Drilling Policy, etc have put American Business at a disadvantage to virtually every other Country in the World.
Therefore, raising prices is a slippery slope that could lead to bankruptcy. Businessmen would have to look at other options such as not hiring new employees, laying off employees, cutting wages, not buying new equipment, downsizing, retiring and trying to sell the business, etc. All of these decisions affect other people and other suppliers. Some businesses might opt to move overseas.
While the Obama plan to soak the filthy rich may appeal to his base, there is more to it than meets the eye. Let’s take doctors for example. There is a shortage of doctors and as a result as many as ten percent delay retirement because it would put other doctors in dire straits or it would leave a community without a urologist or other specialist. Raise their taxes and they WILL retire. They’re not stupid. I think you get the point of where this will take America.