President Obama's plan to save the country from financial ruin, calls for people earning over $250,000 to pay more in taxes. Great, right? Well, exactly who are these people? A great number of them are small businesses who pay tax at the individual rate. They may have gross revenues of $250,000 or even $800,000 but they have to pay their employees salary, benefits, insurance, utilities, rental space and every else thing involved with running their business out of that amount. Usually, the boss is the last person to get a check. It would not be unusual to have a business with say, $300,000 in annual revenue not turn a profit - it happens all the time, especially now a days. These are a large part of the newly discovered rich people the President wants to raise taxes on. You know, the actual job creators. And how do you think an increased tax burden will affect their decision making regarding expanding and/or hiring new employees?
Then there are the disgusting rich. These people usually earn $1 million a year. Impressive, huh. Unfortunately for us there are only 235,413 people who fall into that category according to the IRS. The number of people earning over $10 million annually is 8274. For comparison, 97% of wage earners reported less than $200,000 a year. The average income is $54,283 - a drop of over 6% since 2008. There just doesn't seem to be enough "rich people" out there to bail us out of this mess.
However, the top 1% pay 28% of the tax burden. The top 20% pay 69%. A Tax Foundation survey found 56% of Americans think the amount of federal income tax they pay is too high. Those most likely to feel that way, according to the survey, include those making between $35,000 and $50,000. But here's the kicker - nearly 48% of Americans pay NO federal income taxes at all. We're at a tipping point where soon more people in America will not pay federal taxes, than those who do. And as you saw above, the rich can't bail us out.
Here's another bit of abstract thinking. If ALL the income from people earning over $250,000 a year were confiscated by the government - and I mean ALL of it, the money generated would only fund the federal government for 5 months. And it would still not reduce our $16 trillion national debt a penny. Plus we'd still run an annual deficit of $800 billion, which is twice what it was when Obama took office. And remember, thats if we took it all. Still think the rich are our problem?
Today 100 million Americans receives some sort of entitlement from the government - that's a third of us. And that does not include Social Security and Medicare payments. That is unbelievable. But the really scary part is, its unsustainable. No matter who tells you the problem is those rich people and their tax loopholes, they're dead wrong. The problem is a government who can't control it's purse strings and a population who has grown up with an entitlement mentality. If you want a sneak peak at our future, take a look at Europe. Like what you see?
No one would deny that a financial safety net needs to be in place for those less fortunate. But the idea that all our wants, needs and desires can be paid for by a bankrupt government who promised far too much than it could ever deliver - needs to end. We are out of money and even scarier, we're running out of time. The class warfare mentality may be great for liberal Democrats looking for re-election, but it will deny the reality of the situation and have future generations incur massive debt. (And your grand children thought you loved them) We are currently borrowing 40 cents of every dollar the feds spend. Most of that goes to China who buys our debt via treasury notes that we have to pay interest on. Hey liberals, what part of this are you not understanding? I know you hate the rich but come on. You can't raise the status and standard of living of the poor by dividing an ever dwindling money pie. Opportunity, upward mobility, hard work, drive, risk taking and most importantly - capitalism, have enabled all of us the ability (not the guarantee) of success. Redistribution of wealth has never brought the standard of living up for the lower classes. Never. Want proof? Since LBJ's Great Society program of the 1960's, trillions have been spent on social engineering the poor out of poor. Yet the poverty rate has risen from 14% in 1965 to now 17% under Barack Obama's tenure. 40 million more Americans receive welfare than before Mr. Obama took office. Ever notice how he never talks about spending less, always more - on nearly ... everything!
I am left to conclude that either he actually wanted more Americans to take advantage of entitlement programs or he is simply an incompetent fool in a job that is way over his head. Either way, the methods and philosophy has failed miserably and your kids are stuck with the tab. This brand of Hope & Change has failed. And unless we change the course, I'd stock up on canned goods and ammunition.
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