American Hostage

Ned Barnett over at American Thinker has an excellent article that covers ground on the Obama tax plans that few realize. Take a moment and read Senator Obama’s Four Tax Increases for People Earning Under $250k.

In 2001 and 2003 President Bush enacted tax cuts. Those cuts will not be carried on nor made permanent under the Obama tax plan. Obama says that allowing those tax cuts to laps does not amount to a tax increase, yet your taxes will go up. You can check this out by doing as Barnett suggests below -

Check this for yourself. Go to http://www.irs.gov/formspubs/ and pull up the 1040 instructions for 2000 and 2007 and go to the tax tables. Based on your 2007 income, check your taxes rates for 2000 and 2007, and apply them to your taxable income for 2007. In 2000 — Senator Obama’s benchmark year — you would have paid significantly more taxes for the income you earned in 2007. The Bush Tax Cuts, which Senator Obama has said he will allow to lapse, saved you money, and without those cuts, your taxes will go back up to the 2000 level. Senator Obama doesn’t call it a “tax increase,” but your taxes under “President” Obama will increase — significantly.

Obama, in addition to not calling a tax increase a tax increase by allowing a tax cut to lapse is also calling to raise the payroll tax from 12.4% to 24.8% for those earning between $94,700 and $249,999. Again, Obama does not call this doubling of the payroll tax as a tax hike.

However, when challenged to explain how he could eliminate the cap AND not raise taxes on Americans earning under $250,000, Senator Obama suggested on his website that he “might” create a “donut” — an exemption from this payroll tax for wages between $94,700 and $250,000. But that donut would mean he couldn’t raise anywhere near that $1 trillion dollars for Social Security. When this was pointed out, Senator Obama’s “donut plan” was quietly removed from his website.⁽¹⁾

Obama also plans on increasing the capital gains tax from 15% to 20%. According to the US Congress’s Joint Economic Committee Study, “Recent data released by the Federal Reserve shows that nearly half of all U.S. households are stockholders. In the last decade alone, the number of stockholders has jumped by over fifty percent.”⁽²⁾ The increase of the capital gains tax effects all stock holders, regardless of income level.

Be sure to scroll down to the bottom of the post and see how much extra non-tax tax you’ll be paying under the Obama tax plan.

1. Lest you think Barnett was lying about the PDF existing, look at this Google search for that URL. [↩]
2. See source here. [↩]

End Footnotes.

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