The Washington Times has a commentary article by Lawrence Kudlow that talks about Obama's economic strategy plan for "Change"... The article is very good on brings up many good points that Obama does not bring up in his stump speech, but neither does Hillary in her economic game plan...
"He wants to spend $150 billion on a green-energy plan. He wants to establish an infrastructure investment bank to the tune of $60 billion".
Both Obama and Hillary talk of their "Green Energy" plans and tout how many "Green Jobs" will be made to benefit both the environment and those looking for work. Unfortunately neither of the Democratic Party candidates explain what happens when you hire somebody to replace all of those energy sucking incandescent with those funny looking curly-cue compact fluorescent bulbs. Sure this will create a "Green" workforce to go around and change the bulbs but what is the end result? The new Green CFR bulbs will save energy, which is good, but these bulbs also cost more and last much longer. Will the Democrats then provide free bulbs to those who can't, or don't want to afford paying for the change? Since these bulbs last about five years each what will happen to all of the workers now making the older bulbs that only last a year or so and are put of of a job?
"He wants to expand health insurance by roughly $65 billion. He wants to "reopen" trade deals, another way of saying he wants to raise the barriers to free trade. He intends to regulate the profits for drug companies, health insurers, and energy firms. He wants to establish a mortgage-interest tax credit. He wants to double the number of workers receiving the earned-income tax credit (EITC) and triple the EITC benefit for minimum-wage workers".
As already noted on RightsideVA lets look at some of these plans. Obama wants to regulate the profits of drug companies but how will he help these same companies bring new life saving drugs to market, which costs an average of $800 million per drug, to market? What happens when he takes the incentive away from developing new Drugs or energy sources to market and investments in these areas fall? The evil Exxon and other U.S. energy companies already pay about 45% tax rate to the government. Double and triple the EITC benefits? Where will the $$$ come from and is this nothing but wealth redistribution?
"The Obama spend-o-meter is now up around $800 billion. And tax increases on the rich won't pay for it. The middle class ultimately will shoulder this fiscal burden in terms of higher taxes and lower growth".
Tax increases on the "Rich" has resulted in lower money or incentives to risk money in investments which create small business, improvements and growth to existing business, and hire more people. This will also result in lower GDP and returns on the "Middle class" investments in the form of their mutual funds and 401k programs....
"Mr. Obama says he wants U.S. corporations to stop "shipping jobs overseas" and bring their cash back home. But if he really wanted U.S. companies to keep more of their profits in the states, he would call for a reduction in the corporate tax rate. Why isn't he demanding an end to the double-taxation of corporate earnings? It's simple: He wants higher taxes, too".
As noted in this other Washington Times article. The U.S. corporations are already getting hammered by the highest corporate tax rates already and where is the incentive to move this working capitol back into the states where it will only be hit by at 39.3% tax rate. Another thing. Corporations DO NOT PAY TAXES!!! The tax is paid by the consumer in the cost of the product produced by the corporations. Raise their taxes and you raise what we pay for the product. Take their profits and you take the profits of the shareholder investor which makes up the vast number of us "Middle Class" people who have invested in our future in the form of mutual funds and 401k programs... Many of us are in these programs for we fear the government will not have our money that we paid into Social Security when it comes time for our retirement... What's Obama's plan to deal with the Social Security problem?
Hold that "Change" still left in your pocket tightly...