My interest has been peaked by Obama’s tax plan. As a single person I always feel like the tax code does not take into consideration that as a single person I have many of the same costs as a single income married couple, but do not get the tax benefits as such. They may only have one income, but they get more tax benefit to that income than I do just because they are married. Granted, they do have more other expenses than I do especially since if they have children, but then they get benefits for the children.
Anyway, back to Obama’s tax plan as I read it I didn’t see that there would be any great new benefits to it. I will state that it has been years since I did accounting and I hated it. My current experience is in paying taxes each year. I am single with little income because of my career path. My interest is not how it will benefit me, but if this tax plan really would benefit the country. There are some things that I am interpreting totally wrong, and if so, please direct me to a website I can review for correction. But, I used Obama’s website for this information, and how I interpreted it. After I completed this analysis, I found a website that answers a lot of the questions I have had. It is http://www.cnsnews.com/public/content/article.aspx?RsrcID=37519. If you want to find out more about Obama’s tax plan, I encourage you to check out his website and the above site.
- Per Obama’s website, his plan will “cut taxes for 95 percent of workers and their families with a tax cut of $500 for workers or $1,000 for working couples.”
Then I found this interesting statement on his tax plan. He says that he “will ask the wealthiest 2% of families to give back a portion of the tax cuts they have received over the past eight years to ensure we are restoring fairness and returning to fiscal responsibility.” He also states that “no family will pay higher tax rates than they would have paid in the 1990s.”
Yet, below he says he will help those who are looking to save and accumulate wealth. But, if you accumulate wealth, then you will be taxed. Above, he is asking taxpayers to give back tax cuts they have received over the past eight years. To me this is saying that he wants to tax you on money you earned in previous years that you have already paid tax on.
- “Provide generous tax cuts for low- and middle-income seniors, homeowners, the uninsured, and families sending a child to college or looking to save and accumulate wealth.”
- “Eliminate capital gains taxes for small businesses, cut corporate taxes for firms that invest and create jobs in the United States, and provide tax credits to reduce the cost of healthcare and reward investments in innovation.”
I have thoughts on this but I will stay quiet because I don’t have the knowledge to be able to reply to this. However, I will say that this sounds like the corporate welfare that he finds fault with. I heard something about his healthcare plan. If he fines companies at a lower rate per person than the cost of providing healthcare to their employees and their employees can get easily get healthcare on their own then what incentive do companies have to continue to provide healthcare for their employees. By doing so, will decrease their expenses. However, while at first glance this might seem like a win-win for employees and companies, I think it would end up being a big lose-lose-lose for the employees, the companies and for the country. For the simple fact it will save companies money but probably will not show higher wages for the employees, with the loss of a benefit, and overwhelm whatever government healthcare programs are put in place.
- “Dramatically simplify taxes by consolidating existing tax credits, eliminating the need for millions of senior citizens to file tax forms and enabling as many as 40 million middle-class Americans to do their own taxes in less than five minutes without an accountant.”
I know that there are different ways to file taxes, such as tele-file, if you do not have to itemize, so I would like to know more about these plans. Because rather than simplifying taxes, it would seem it would be beneficial to go to a flat tax plan.
In reviewing his website, he has a picture that shows who will benefit under his tax plan. One thing I immediately noticed is that his examples showed that it was being able to take multiple tax credits for children who seemed to benefit. Since he has now announced that the mortgage credit is only for those taxpayers who have a job and do not itemize, I am wondering how many of his tax cuts will end up being narrowed to those who do not itemize. From my experience, if I did better when I did not itemize until the point where I bought a house and benefited from itemizing. It sounds to me like a lot of what he planned as tax cuts already exist in the tax code if you itemize, so it will only benefit those who do not itemize. Thus, it is as has been said and a way to provide welfare through the tax code. If you would like to find out the status of welfare in this country do a search on welfare to work.
At some point in our lives we all needed a hand up to help us, and I am for the use of tax money to help people with a hand up, but when it becomes a continued hand out the system needs to look at what needs to be done to turn that hand out into a hand up. I will say that I do know people that because of health and other concerns will be on welfare and they are not the people I am addressing in the need for a hand up instead of a hand out.
After pondering these thoughts for a few hours, it really became clear to me that Obama thinks that the money we earn belongs to the government and they let us keep what they think we should have. By giving to others as welfare they keep that person dependent on them for the money. As long as they make it easier for people to be on welfare rather than to get hands up to get off welfare they will have people that depend on them for income. But, now they plan on taking money from workers so that we will begin to become dependent on them as well. I guess they just don’t see that this is the whole reason their economy will not work.
I have been told that one of the reason why socialism does work in other countries is because the size of the population in those countries. It is easy when you have a country that has less population than a major city in the United States to provide free services to the entire population. However, just the vast size of the population in this country will make it nearly impossible to make socialism a success.