Shut It Down! Absurd Tax Policy Threatens the American Prosperity Machine

Written by William Pauwels on April 22, 2014

In the process of trying to save the American-Way – the American Prosperity Machine – I became convinced that Governor Mitt Romney was the best man to turn our country around. I based this on his proven history of success as a Governor, business executive, entrepreneur, manager, church leader, and savior of the Salt Lake City Olympics.  Four additional years of Obama’s failed Presidency seemed unimaginable in 2012.   

As such, in my writings I highlighted the nation’s needs for job creation, higher wages, lower gasoline prices, economic growth, debt and deficit reduction, global leadership, etc. . . . . and Mitt Romney’s demonstrated ability to deliver these kind of results.  I felt these were the hot buttons that would appeal to a thinking American electorate.  Wow – was I wrong!

As it turned out, the greatest voter appeal was for Obama, who promoted hatred for Romney – as a rich and greedy businessman, who fired people and exported jobs to China.  Obama said that Romney/Ryan would take entitlements away from the poor and needy. This Saul Alinsky method of criticism and deception proved to be successful during the past two presidential elections.  Clearly, a positive campaign is not effective. Obama and Axelrod proved themselves to be grassroots street-fighters capable of motivating the underclass and their more affluent sympathizers.

Unfortunately, Obama and his cohorts have carried his Saul Alinsky attack-your-enemy, divide-and-conquer strategy into the White House and into his administration.  The traditional American Value of being President of ALL the people went out the proverbial window under Obama.  For seven years, his attacks on Republicans and the Tea Party have been relentless.  Virtually none of their ideas have been accepted.  He has been transforming America into a de facto Marxist/Fabian-Socialist nation in economic decline and incapable of leading the free world.  He has expanded the welfare state beyond America’s economic means.  He has expanded the nation’s debt and operating deficit to unprecedented historical levels. 

Despite his pledge not to raise taxes on citizens earning $250,000 or less, he has increased the upper tax bracket from 35% to 39.6% – a 13.1% increase on America’s middle class and above.  ( Note: President Reagan lowered the top tax bracket from 69% to 28%.  As a result, the income of the bottom 20% increased by 11.8%, and 12.2% for the top 20% –  per the Congressional Budget Office and the IRS, Tax Policy Center.  Unfortunately, under Obama, the Average household income has declined by over $5000).

A Gallup survey says 52% of Americans think taxes are too high – 42% think they are about right – and 3% think they’re too low.  FoxNews polled  registered voters asking what bothered them most when paying taxes.  35% said: the way government spends our taxes. 28% said: the rich are not paying enough. 14% said: too many don’t pay taxes. 11% said: the complexity of the system and the tax forms. 9% said: the amount you have to pay. 

(Note:  Obama has sought 442 tax increases since taking office – many unsuccessfully – but a clear indication of his Fabian-Socialistic orientation . . . per Wayne Rogers.  Steve Forbes reports that 6 billion hours were spent filling out and processing tax forms – according to the IRS. A flat tax, which he advocates, would save much of this time, effort and administrative expense.)

Obviously, one must wonder – where is America heading when a majority of voters prefer a charismatic, cheerleader-type candidate over a proven, highly qualified chief executive.  Is the once envy of the world – The America-Way . . . The American Prosperity Machine – lost forever?          

Image: Courtesy of: +the+Tax+System+JBS

William Pauwels
William A. Pauwels, Sr. was born in Jackson Michigan to a Belgian, immigrant, entrepreneurial family. Bill is a graduate of the University of Notre Dame and served in executive and/or leadership positions at Thomson Industries, Inc., Dow Corning, Loctite and Sherwin-Williams. He is currently CIO of Pauwels Private Investment Practice. He's been commenting on matters political/economic/philosophical since 1980.