This year when people were getting their $600 stimulus checks, I got an adjusted check for just over ten bucks. It seems that I am too “wealthy” to get a check. And where most of those who received their “rebate” (read: handout) used it to pay down debt, people like me would have actually SPENT it and put it into the marketplace. My ass would have went down to the John Varvatos store on Bowery and bought a pair of shoes, jeans and a shirt. Bye-bye $600. It’s that easy.
But no, if you made more than $75,000 there was no rebate for you. So before you even get excited about Obama’s “95 percent of workers will get a tax cut” bullshit, consider this: in some of his first comments on how to jumpstart the economy, Obama talked about money for welfare, extending unemployment benefits and bailing out the auto industry. He also talked about his pledge to let the “Bush tax cuts” expire in 2010. He is then going to lift the top income bracket to nearly 40 percent AND increase capital gains tax.
Bad idea. Let me tell you why…
Wealthy people can feel taxes too. I don’t care if you make $200,000 or $2,000,000, you will feel that hit. Do you think that these people are going to say “Oh, well. What can you do?” No. Traditionally, and even more so today, this is what will happen if the rich get taxed like never before.
They will spend less on goods and services. The new car will have to wait; ditto for these home improvements. They also might lay off some staff. Yes, it’s belt tightening time. Think this doesn’t affect you? If the everyday person starts to watch spending, you won’t see a blip. If the RICH start to spend less, you WILL see it. It affects everything from retail sales to consumer confidence. That’s bad news for the economy as a whole. I mean, the government spent about a trillion dollars on "stimulus" packages - i.e. trying to GIVE people money to spend. Why then would you take away money from those that actually SPEND it on goods and services?
They give less to charity. Yep, that’s right. In times of economic upheaval, the rich will put the brakes on charitable giving. So charities will also feel the brunt.
They spend less on luxury goods. Yeah, you're saying "what do I care?" right? Well someone has to make fancy tennis racquets and watches and clothes. Less companies manufacturing goods means slower growth.
They will delay new home purchases. HELLO!?!? The WHOLE REASON we are in this mess is because Bill Clinton and the Democrats decided that minorities deserved to be home owners, whether they could afford it or not. Yeah, thanks Bill. But the more and more people delay home purchases the worse this crisis is going to get. And guess what wealthy - truly wealthy - people LOVE to do? BUY HOUSES! Tax them at 40 percent and guess what they will do?
They will play it conservative in the stock market. Just when you need some stability in the stock market, you're going to raise capital gains taxes? Great idea. In turn, the wealthy will put their money into safer investments: T-bills, gold...not exactly the prescription for growth, is it?
Since Obama got elected thanks to these blue collar dullards in places like Ohio and Wisconsin, he needs to start creating manufacturing jobs. First, that is NOT where you want to see growth. You want to encourage children to excel in math, sciences. But if you concern yourself with the WRONG KIND of job creation, you'll have a whole bunch of goods and no one to buy them!
And finally...
Windfall tax on oil companies. Worst idea ever. Companies exist for one reason: to MAKE MONEY and benefit shareholders. That's it. Here you have someone - um, a PRESIDENT, wanting to TAX an industry because it is doing what it SHOULD DO - MAKE MONEY!!! Duh! And if you think that those unions that the Dems love so much are going to benefit from tactics like this...then the unions should check and see what COMPANIES their pension funds are invested in....want to bet you'll see ExxonMobil there? BP? Shell?
So go ahead, Obama - tax the rich. Let's see where we are a few years from now.
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