A Few Simple Questions on "The Obama Tax Cuts"...

I was wondering the other day; how are the democrats are going to attempt to spin their tax strategy?

Let's use the democrat premise for a minute. If the extension of The Bush Tax Cuts are, in effect, now The Obama Tax Cuts; why was their expiration not considered a tax increase just months ago?

The democrats reasoning behind the extension of The Bush Tax Cuts (for the middle class) is that it will help middle income earners by allowing them to keep more of their money and increase economic activity. Is this not an admission that increased taxes cause decreased economic activity? If so, why not keep taxes lower for everyone and spur even more economic activity? We are indeed in an economic downturn; why would the government want to do anything which results in decreased economic activity?

Taxes are money taken out of the free market by government. Tax money is then redistributed by the government as the government sees fit. If the so called "tax cuts for the rich" are going to cost the government 700 billion dollars, are they not also keeping 700 billion dollars in the free market --where economic activity is generated. To compound this; the Bush Tax Cuts included dividend and capital gains tax reductions. Dividends and capital gains are effected by inflation, so taxing them at a rate higher than income will result in a reduction of capital investment. In other words, with dividends or capital gains, you are being taxed on the money your earn on your investment. This tax rate does not take into effect inflation. So, capital gains and dividends are taxed at an ever increasing rate because the tax rate does not account for inflation.

If you pay close attention to what the democrats are saying, it makes no sense at all. On many of the Sunday talk shows numerous democrats have pointed to tax increases for millionaires and billionaires, and then talk about tax increases for those making over 250 thousand dollars a year. have you ever heard of any millionaires much less billionaires who make 250k a year. Another point to ponder is this. The democrats claim that tax increases on those making more than 250k a year will not have much of an effect on small business owners. Are there that many people out there making more than 250k who are working for someone else? Are there many people out there working behind a desk making 250k a year? The truth is that the majority of people making more than 250k a year are small business owners.

Nobody goes on a job hunt for jobs grossing 250k a year, because they already know that they won't find one.

The democrats are hinging on the hope that you will buy their faulty logic. The democrats hope that you have enough hatred for those making more than 250k a year that you will punish them with tax increases via elected officials. I don't think that there is that much hatred out there. I don't think that the American public is as stupid as the democrats would hope. Let's keep surprising them!

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