Now I know there are a few Obama supporters left out there who are ready to remind me that the tax hikes will only be on the wealthy which Obama also said over and over again ad nauseum. The definition of "wealthy" changes frequently and ranges anywhere from $150,000 to $250,000 per year and above. There is one simple economic fact that must be understood here. A business that brings in $250,000 per year is a small business. The business owner may not be able to pay himself/herself that much due to the businesses operating costs. But to the government, that is the individual's income. These mean wicked people who earn such amounts of money are the ones who own the businesses. The stores where we buy goods and the businesses where we obtain services. Now, before anyone scorches my comment section still insisting the tax hikes are "only for the rich", there is one fact that must be kept in mind. Businesses do not pay any taxes. That may sound like a bold statement to you, and any readers that are small business owners may have just about had a stroke reading this. But they don't. We the consumers pay the taxes. Large or small businesses, anytime their taxes go up as well as any other operating expense goes up, prices for goods and services go up. They have to for the business to remain in business. Businesses large and small can't keep on absorbing increased taxes. If they did, the profit would at some point turn into loss, the business goes under.
So, who is REALLY going to pay the tax increase on upper income people who are already paying most of the taxes in this country anyway? YOU and I. According to a FOX News article, OBAMA SEEKS 1.1 TRILLION IN TAX HIKES, some of the proposals included in this budget are:
*Limiting the itemized tax deductions high earners can claim for charitable donations. This is bad news for charities as wealthy people donate huge amounts of money to charities. Americans donate more money to people in need in general and after a disaster than the government gives in any type of aid - by far. I guess Obama resents being upstaged by us. I feel for those that will no longer be provided assistance when they need it if this passes.
This budget proposes limiting the itemized tax deductions high earners can claim for mortgage interest. One does not have to be an economic expert to see how this would be bad for the housing market that's already in the sewer.
*Impose a "financial crisis responsibility fee" on the large banks and other large financial institutions. Another tax on YOU and I. The government imposes new taxes on banks, banks pass it on to the consumer. In other words, John Q. Workingman pays it. Simple economics this administration does not or does not want to understand.
*Impose 39 billion dollars in tax increases on oil, gas, and coal companies. This means your power bill will go up as the coal tax is passed on to YOU and I. This means the price of home heating oil will go up as the oil tax is passed on to YOU and I. This means the price of gas will go up at the pumps as the gas tax is passed on to YOU and I. Which means we can forget about tapping into an oil supply here in the United States that would free us completely from Middle East oil and cut off that part of the funding for terrorism.
One more thing. As I remember from last summer, those us 95%-ers were supposed to have received a tax cut between March 1st and April 1st last year. Here it is again from the proverbial horse's mouth (skip through to about the 2:35 mark and listen to the end if you don't want to listen to the entire video):
The preceding video was from February 2009. As part of Obama's economic stimulus plan, there was to be a tax cut for us 95%-ers. Well, a year later, and my taxes have not dropped one dime. I have received no economic stimulus check as I did from the Bush administration. So, Mr. President, pray tell where is this tax cut? I would really like to see it. And by the way, Mr. President, I am not among those evil people who earn more than $250,000 per year - unless there is about $210,000 every year that I'm not getting!