In his State-of-the Union speech last Tuesday, Obama proposed higher taxes on the wealthy and lower taxes on the middle class. The facts are the middle class and lower class pay little or no household, Federal taxes. Allow me to explain:
According to the Congressional Budget Office, the bottom three (income) quintiles effectively face negative after-transfer-tax rate of -35 percent, -27.6 percent and -13.7 percent. That means they receive more from the federal government economically – in money, benefits and entitlements – than they pay to the federal government in taxes.
The fourth quintile faces an after-transfer-tax rate of just +0.7 percent. That means their after-tax net transfer payment to the federal government is less than one cent out of every dollar earned.
However, the top quintile – the top 1/5th of earners – have an after-transfer-tax rate of 18.9 percent – nearly $.19 out of every dollar earned. In other words, the wealthy pay most of the Fed after-transfer-taxes.
But that’s not enough for President Obama or his Democrat cabal. They want the top quintile to pay more, more, more. Our Handout President wants to confiscate more OPM – other people’s money – to fund his de facto Marxist/Fabian-Socialistic/Leftist-Progressive agenda.
In his SOTU speech, the President outlined a list of new, petty entitlements that he wishes to initiate as federal government responsibilities. His overreach for federal involvement and control of American lives and private institutions would make Karl Marx and Vladimir Lenin proud.
Free, free, free! . . . Now it’s free college education? When is this Obama handout madness going to stop?Nothing in life is free. Someone must pick-up the tab. Obama knows this, but wants to spend taxpayer’s money to enhance his legacy and to attract voters to the Democrats.
America became a great nation by working for its stuff and its privileges. Obama-free is not the answer – it’s the wrong answer. It’s de facto socialism – de facto politics. It’s disgustingly irresponsible.
His lecture on middle class economics was naïve, and explains why he and the Democrat Congress and his Administration have had such a dismal track record these past six years.
Obama clearly doesn’t understand – or doesn’t want to accept – the fact that economic prosperity for the greatest number of citizens depends on investment, innovation, entrepreneurialism, low taxes, and free competitive enterprise. It does not depend on more government monopolies and regulations. We already have too much government – too many regulations – too many taxes – too many illegal aliens.
Taking OPM out of the pockets of investors and innovators and small businessmen and women as the federal government has done and now propose to accentuate, will only lead to further economic decline, lower wages, and fewer jobs for working Americans.
(Statistics Sourced from: Mark J. Perry, “New CBO study shows that ‘the rich’ don’t just pay their ‘fair share,’ they pay almost everybody’s share,” American Enterprise Institute, November 15, 2014.)
In God we must trust . . . but we must always do our part – to secure and promote the truth and a better way – to protect our freedom and interests – and to defend the Judeo-Christian American-Way.