Monday, February 25, 2008

Hillary, Obama, Sam, - The game and the World are changing...

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Hillary, Obama, and even Sam have been busy talking up the “negatives” of the economy and their perceived inequities of incomes of the American people. Attacking the “Rich” has always been a proven vote getter from those who feel it just isn’t fair how others have more than they do, but by ignoring the facts as the candidates are doing, only shows that these people care more about their election to office than the peoples well being.

Hillary has already made it clear that she intends to “redistribute the wealth” as soon as she can and give it to those who vote for her. “When John robs from Peter to give to Paul, John can always count on Paul’s vote”…

"Many of you are well enough off that [President Bush's] tax cuts may have helped you. We're saying that for America to get back on track, we're probably going to cut that short and not give it to you. We're going to have to take things away from you on behalf of the common good."
(Hillary to her fellow liberals in a speech in San Francisco; SFGate.com 6/28/2004.)

Obama has been quick to attach Hillary to the NAFTA agreement and the perceived damage that it has done to industrial areas such as Michigan and other active campaigning states. Hillary can’t run fast enough from her alleged support of NAFTA while she tries to capture the same “Union” vote that most Democrats cling to as well as cater to…

"I think it's important to note that Senator Clinton was a cheerleader for NAFTA for more than a decade," Mr. Obama said at a press conference where he accepted the endorsement of a regional chapter of the United Auto Workers. Obama statement in “Obama attacks Hillary on NAFTA” Washington Times

We have a local fellow here in Virginia who has also been trying to capitalize on the income disparity between workers in America. Sam has been quick to point out that the top 1% of income earners now earn over $348,000 but yet fails to note the upward income mobility of most Americans during the same period. He fails to note that many people have moved up out of the lower income brackets into the middle class as a result of the Bush tax cuts and millions more of lower income people now pay NO income tax at all. This being another “hand-up” to the new or lower income worker to improve themselves which data has shown has happened during the same period when all income groups improved. Our local democratic candidate, like Hillary and Obama, are quick to point out that many are doing better in life but they fail to note that because of the citizens efforts to improve their skills, invest in their futures, and sacrifice now for a better tomorrow, is a big part of the reason. It is easier to claim that others are doing so much better and are not “Paying their fair share” and that is why you should vote for them to make things “Fair”…

Our Democratic friends point out how unfair it is for some to have so much and others so little but offers no solutions and just wants you to know they “feel your pain”. What is the solution? Tax the rich more? Tax the corporations more? Some people complain that there is no money left to invest like the rich people do but yet these same people have top of the line cell phones, HD television, vehicles that are no longer worth the amount remaining financed on them, cable, on-line charges, and outstanding “Rent-to-Own” payments to be made. Many people are in the situations that are the result of their choices and not the result of those who made wiser choices in life. There are those who need help from the government, local organizations, churches, and citizens who are willing to help their neighbor and that help is out there and available. Lets not punish those who have succeeded. We should reward those who have worked hard, sacrificed, and invested in their futures.

Hillary has stated that she wants to take things away for the common good and the “evil” oil companies have been a favorite target for her. Like many from her side of the aisle they jump at the opportunity to trash the evil corporations but yet fails to mention the amount of taxes these corporations pay. A prior RightsideVA post shows that evil oil corporations pay over 45% tax now and who gets that tax revenue. Washington and Congress gets the money that they are so hungry for. How much do corporations pay in tax? NOTHING… taxes are passed along to the consumer in the cost of the product sold…

Hillary and company have been campaigning in heavily union industrial states and complaining how numerous manufacturing jobs have left the country in the last seven years. At the same time they fail to note that unemployment rates have been very low over the same period of time and corporate tax rates continue to decrease around the world. While campaigning in the “Auto Industry” state of Illinois Hillary complained about the 200,000 jobs that have moved out of the country but failed to address the obvious reasons. It has been reported that $4,000 to $5,000 of the cost of a new GM vehicle goes to paying for the medical benefit plan of current and past employees. The cost of burdening union deals has resulted in several American corporations from producing a quality and affordable product. This situation is not entirely the fault of the Unions but deals like this made by the American auto industry is why these companies can no longer compete in the world market. This and the 2nd highest corporate tax rate in the world has resulted in many of these jobs leaving the country…

The American Spectator (Feb 2008 issue) has a very good article “As the World Turns” that shows and explains why many of countries are now turning to “supply side” economic practices. It also shows how both the “game” and the world is changing… The article is written by Arthur Laffer & Stephen Moore. I had the opportunity to see Laffer at the recent “Americans for Prosperity”
event in Washington D.C.


“Senator Clinton says that she wants to repeal the Bush investment tax cuts, because they benefited the wealthiest 1 to 10 percent, And she’s the moderate of the Democratic presidential field. Barack Obama and John Edwards want to nearly double the tax on capital gains to 28 percent”


How will increasing the tax rate on those investing and risking their money in our markets benefit the economy? Can you tax an economy into prosperity?

“Two decades of slow growth and double digit unemployment in Europe have made it necessary to turn to the supply-side economics model they once disparaged”.

How will punishing or taking from corporations “for the common good” keep manufacturing jobs here instead of going to other economies?

“The U.S. now has the unflattering distinction of having the developed world’s second highest corporate tax rate of 39.3 percent (35 percent federal plus a state average of 4.3 percent) according to the Tax Foundation”.

Germany has seen the light and their economy and well being of the citizens has improved…

“So now, amazingly, Germany, which started the century with a 52 percent top corporate income tax rate, has sliced and diced that down to 19.8 percent.”

The Flat-tax is nothing but a theory, would it work anywhere?

“These onetime Soviet satellites endured suffocating economic controls and even real declines in living standards for half a century. Now they are capitalists and flat tax fanatics. In the late 1980’s there was one nation in the world with a true flat tax, and that was Hong Kong. Now there are 22 such nations, most of them in Eastern Europe, with new converts added by the month. The average flat tax rate is 20 percent, which has made the 40 to 60 percent tax rates of Old Europe unsustainable if it is to maintain its industrial base.”

Remember those who were dead set against the tax cuts by Kennedy, Reagan, and Bush 43?

“We call this Global Phenomenon Reaganomics 2.0. The supply-side economics model that the Gipper started to install with such great controversy 27 years ago is now the the economic operating system around the globe.”

“Under Reagan, tax rates went from 70 percent to 28 percent and the inflation rate from 13 percent to 3 percent, allowing the incentives for production, work, investment, and risk taking to explode.”

The results of rewarding hard work and investments benefits all:

“About $1.5 trillion more investment came into the United States than left, from 1982 to 2002. That meant two decades of new factories, technological investment, low priced imports, jobs, and rising wages and living standards.”

"Russia’s 13 percent flat tax generates more revenues than the old “Progressive” system with rates well over 50 percent”.

“Ireland is the classic case of a nation on the “correct side” of the Laffer curve. It has a 12.5 percent corporate rate, nearly the lowest in the world, and yet collects 3.6 percent of GDP in corporate revenues, well above the international average. The U.S. by contrast, with it’s nearly 40 percent rate, has been averaging less than 2.5 percent of GDP in corporate receipts.”

Very good article but not on-line. Well worth the cover price of The American Spectator…

4 comments:

Anonymous said...

Sam Rasoul points out the obvious fact that CEO's are now making 400 times what the workers are! This is nothing but the top 1% ruling over the population and getting richer, now $348,000+ off the backs of the people.

RightsideVA said...

Is that ALL Ceo's or just a select few? Home Depot gave Nardelli $200 million when he left after a medium performance. The shareholders went wild and I believe there will be no more Golden parachutes next time. Does Sam include ALL Ceo's in his claim that they are making 400 times more then the workers?

He also fails to note the upward income mobility of the population due to the economy. He decries the Bush tax cuts but fails to note that more people moved UP out of the lower income brackets into the middle class and MILLIONS of lower income people were cut from the income tax rolls and pay NO income tax at all...

He also fails to provide solutions to the problem he highlights. Raise taxes on the Rich again? Raise taxes on the evil corporations? Take away from those who improved their skills and give to those who fail to do anything to improve since the government hands them a check as a reward? And who will these people vote for? The guy who promises to tax the "Rich" more so to be able to send a fatter check to them???

The American people have and will continue to take care of those who are unable to take care of themselves. But to play the "Class warfare" card for votes is wrong...

brandon said...

regardless of "who wants to tax who" the burden of the debt that this country faces will be put on the backs of the middle class as well as the corporations. anyone who says they will tax the rich more fails to include the fact that the middle class will inevitably be taxed more as well.

RightsideVA said...

The middle class?
Not by the numbers but in other ways....

"The top 1% pay over a third, 34.27% of all income taxes. (Up from 2003: 33.71%) The top 5% pay 54.36% of all income taxes (Up from 2002: 53.80%). The top 10% pay 65.84% (Up from 2002: 65.73%). The top 25% pay 83.88% (Down from 2002: 83.90%). The top 50% pay 96.54% (Up from 2002: 96.50%). The bottom 50%? They pay a paltry 3.46% of all income taxes (Down from 2002: 3.50%). The top 1% is paying nearly ten times the federal income taxes than the bottom 50%! And who earns what? The top 1% earns 16.77% of all income (2002: 16.12%). The top 5% earns 31.18% of all the income (2002: 30.55%). The top 10% earns 42.36% of all the income (2002: 41.77%); the top 25% earns 64.86% of all the income (2002: 64.37%) , and the top 50% earns 86.01% (2002: 85.77%) of all the income".

The top 1,5,10,20,40,50% etc pay a far more in actual federal income tax as shown above. The "middle" class is part of that amount but look at the %'s paid by the top guys. This is hard tax taken from them but yet many claim that they do not pay their Fair-share...

The shame is that many do not understand that by hammering the top guys even harder only results in less investment which grows the economy and provides an avenue for the middle class to move up.

One simple question: "How does increasing taxes result in prosperity?" How does higher taxes improve the economy? How will taking more of my INCOME benefit me or the economy?