Tax Breaks for all?

I read this post on Michelle Malkin All or nothing: Stop the Obama tax increases

This is what Obama has said about giving the tax breaks to all.

Obama said giving the tax break to people earning more than $250,000 a year will cost the country $700 billion over the next 10 years.

This is what Michelle Malkin replies to that part of what he said.

All or nothing: Stop the Obama tax increases
By Michelle Malkin • November 8, 2010 09:53 AM

I’m going to keep repeating it until they stop saying it.

Republicans, you are not fighting for the extension of the “Bush tax cuts.”


All of them.

As I noted on Friday, when voters got the chance to soak the rich in Washington state, they overwhelmingly rejected onerous, punitive taxes to redistribute wealth from private job creators and future private job creators to government schools and government health care programs.

Over the weekend, Obama said he is willing to have a “serious conversation” about temporary tax relief for all.

Yeah, we know how Obama’s Kabuki “conversations” end (reminder: smitten Smurfs).

The feint:

President Obama is not ready to cave in to Republican demands that Bush-era tax cuts must be extended to wealthy Americans.

Obama told “60 Minutes” that he is ready to work with Republicans on the hotly debated issue, but he stopped short of saying he is ready to compromise with the GOP.

“We’re gonna have to have a serious conversation about it,” he said in his first interview since Democrats were massacred at the polls on Election Day.

The dispute centers around whether to extend the tax cuts to families earning less than $250,000, which both parties want, or giving the cuts to all Americans, which the GOP wants.

Raising taxes for middle class Americans, the President said, “is the last thing we want right now.”

The cuts are set to expire by the end of this year.

Obama said giving the tax break to people earning more than $250,000 a year will cost the country $700 billion over the next 10 years.

Obama isn’t “giving” anything. He’s taking. And taking. And taking.

Obama and the Democrat ruling majority took trillions from wealth-creating Americans in the name of an “emergency situation”

He tripled the deficit.

Sold hundreds of billions of dollars in U.S. debt to China.

And now he’s worried about fiscal responsibility?

Here is what I say about it. Umm, remember when Carter decided to raise taxes on luxury items. You know the items that the wealthy can afford and buy so as a way to tax the wealthy that can afford those items the democrats decided to put a special tax on those items. Sounds great doesn’t it? Let’s get some taxes on the wealthy by taxing items that only the can afford to pay. One word – Yachts. Yep, Carter and the Democratic controlled congress decided to tax Yachts. And guess what happened, people didn’t buy yachts so they wouldn’t have to pay the taxes. So, the country lost out on the tax revenue. But, what is even worse is that this luxury tax that was to hit that 1% that earns more money so they should pay more than their share to the country actually hit the middle class who made the yachts.

From hubpages

Even when taxes are carefully crafted to only include the real rich, there can be a nasty surprise for the middle class and the nation as happened with the Carter Administration’s tax on yachts. After whipping up the publics’ emotions with their usual class warfare rhetoric (remember Carter’s campaign against the so-called three martini lunch deduction?) President Carter and his Democrat controlled Congress enacted a stiff tax on the purchase of yachts. Given that only the super rich can afford a yacht, this should have been the ideal tax on the rich. But the Carter Administration overlooked two things. First, the rich, like everyone else, hates to waste money. Second, and more important, while only the rich buy yachts, it is middle class workers who build yachts. As a result of the tax, most rich people did one of two things in that they either made do with last year’s yacht or purchased a new one abroad where the tax did not apply. In doing so, the small American yacht industry was destroyed (one New Jersey town whose economy was totally dependent on yacht building faced economic disaster) and associated jobs and income tax revenues (unemployed people generally pay little or no income tax) were lost. This little episode only served to further weaken the nation’s economy which, as a result of the misguided Keynesian taxing and spending policies of the Nixon and Carter administrations, was struggling under the dual burden of double digit inflation AND double digit unemployment.

The yacht tax fiasco, which even if it had been successful, was never projected to generate significant revenue. It was instead, driven more by a desire to punish the rich for their success than to raise revenue. However, the yacht tax is a clear demonstration of the truth of former President Regan’s observation that Washington doesn’t solve our problems, it IS the problem.

This is what is going on right now. Companies are worried about what taxes they are going to have to pay so they are not trying to grow their businesses, instead they are just trying to exist. This is impacting their workforce, which is trickling down to the middle class workers who either have been laid off and are job searching or who are terrified they will be laid off. Everyone is in a holding pattern right now trying to figure out what to do as Congress keeps adding taxes without realizing that it isn’t about giving us our money it is about letting us keep our money, spend our money to help boost the economy! Besides, just remember that if they decide to only allow those who make under $250,000 to keep their tax breaks, when will rich become $200,000, and then $50,000.


2 thoughts on “Tax Breaks for all?

  1. […] We’ve been punished enough.TrackbacksBlog @ » Blog Archive » Standing on PrincipleTax Breaks for all? « Garnette’s ViewTrackback URLSpeak Your Mind Cancel replyYou must be logged in to post a […]

  2. Geoff says:

    Remember when they say it’s unfair to cut people’s taxes, it’s our money. Doesn’t matter who you are, or how rich. If that money was made legally it belongs to that individual. The government is not giving it away to anyone. Government must learn to live within it’s means and the people must stop accepting stupid arguments as fact.

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