In reality, Joe’s “Middle Class” income is going to be mangled by the imposition of retributive taxes that would kill his incentive and dampen his initiative to work even harder to expand his business that would create more jobs, which would increase more household income in general!
Obama vowed to punish “the rich” even more by imposing heavier taxes to siphon wealth and redistribute it to “the poor”. The target of this tax mania is the approximately 5%-10% “rich” corporate taxpayers on top that make America the wealthiest country on the planet. They create millions of jobs for “the poor” and the “Middle Class” and increase their income by stride with a tremendous multiplier effect to the economy, thus making America the wealthiest and the mightiest nation on earth.
Like any other economists, what I am clearly saying without any iota of doubt is that it is a good policy for the government to encourage and promote corporate economic activities, and a bad policy to “kill” them with confiscatory taxes just because in Obama’s mind they are “rich”, a catchword of Liberal condemnation in behalf of the poor masses to win their votes. When big corporations close down, or move their businesses to other countries where taxes do not “kill” them, millions of jobs are lost, and the ones that suffer the most are “the poor” that Obama promised to help but instead bludgeon to hardship and consigned to penury.
Aware that Obama is going to “kill” their businesses that create jobs by imposing a punishing rate of escalating taxes, corporations are going to “hide” their “business transactions” and income outside of the United States, to evade paying taxes.
Tax havens like the Cayman Is. where I have been about two years ago on a tour and at the same in a survey of off-shore banking in the island, and the 3-Bs [Bahamas, Bahrain and Belize], are well-known sanctuaries of tax evasion.
Obama should review his knee-jerk economics. He should know that under his tax plan, scary things are going to happen that would not only create recession but more dangerously would send the economy to the ICU. The terrible financial meltdown we have now that calls for more than a $700 billion bailout, would be just kid stuff in comparison.
At least Obama should not ignore the fundamentals of taxation which he is flouting to the point of ignorance, that when corporations are penalized with unconscionable rates of taxes or forced to bear multiple taxes to raise revenue for his massive trillion-dollar government spending if elected president, just because in his vocabulary these corporations are “rich”, the public is actually the one penalized when the penalty is passed on to the consumers!
This is just one of the basic principles of economics that Obama conceitedly disregards and his advisers contravene with such condescending arrogance.
That’s not how wealth grows in America. Obama’s plan is the way of the collectivists in a centralized economy; that’s how tax evasion are encouraged, how welfare dependency among the population is promoted and how the government grows out of control.
It was in the final presidential debate held in Hofstra University in Hempstead, N.Y. on October 15, 2008 that Obama’s socialist scheme for America had become crystal clear to the public. Obama has been hiding this ideological dream since his early association with radical socialists in the academe of Chicago, like American bomber Bill Ayers turned educator who would murder Americans and bomb buildings to create a classless society in America.
I have warned millions of readers in a published editorial in the Internet, especially Obama supporters, that except for leftist partisans already riding the Democrat bandwagon down the road to White House, the public hardly knew Obama was a member of the “Democratic Socialists of America, a U.S. affiliate of Socialist International” [SOCINT]. [Click "here” or see Note below.]
In the UN, representatives of the free world [I was there as deputy permanent representative] clashed with SOCINT delegates in spirited debates when the New International Order of the 70s was crafted. Their extreme international structuralist models were the works of Baran, Sweezy, Magdoff and their kind who advocated the transfer of surplus from the periphery [Joe’s surplus income] to the center [to the government] just like what Obama is now advocating in his “wealth redistribution” plan for America. The government Obama will create is confiscatory, just like how all communist governments confiscate wealth.
The result of this government pilfering of the people’s income through punitive taxation is that the surplus drain reverses growth of businesses and industries resulting in massive loss of jobs, thus perpetuates the poverty of the less developed countries [the periphery in the global macro scene, which in domestic micro perspective means the 95% of millions of struggling poor in America].
To elect Obama president would be a haunting experience to all Americans! #
© Copyright Edwin A. Sumcad. NWS access October 22, 2008
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