A hard working plumber told Obama at a rally this weekend that he is planning to buy a small business for $280,000 and plans on expanding it by buying more trucks and employing additional help . He asked Obama on the rope line" My taxes would go up under your plan ..wouldn't it? "
Obama responded saying " It's not that I want to punish your success, I just want to make sure that everybody that is behind you - they have a chance at success too." Obama went on to say " My attitude is that if the economy is good for folks from the bottom up, it's gonna be good for everybody...I think when you spread the wealth around, it's good for everybody."
Say what? What kind of America does Obama want to create? What is his vision of the American Dream? Is it one where hard working Americans, who strive to build businesses, that create jobs, balance their budgets, live within their means are penalized with increased taxes preventing them from attaining their American Dream? What is this building the economy from the bottom up? I was never given a job by someone who didn't have any money.
Well let us look a little closer at the Plumbers story...
The Plumber is an hard working average Joe ...Joe Wurzelbacher to be exact. Joe lives in a neighborhood where homes are between $90,000 to about $145,000. He doesn't plan on buying a bigger house and says that all his money will go into building his new business so he could not afford a larger house even if he wanted one.
Joe knows what is is like to live paycheck to paycheck and little by little he got out of that position by working as a plumber, where he literally had to deal with other peoples backed up toilets, crap and urine, filling a job position that many would turn their nose up at doing.
Joe's hard work allowed him to save and he is ready to buy a company which he plans to expand ultimately creating new jobs for others.
When he asked Obama about his tax plan and Obama essentially told him that it was fair that he pay more taxes. He told Obama that his policy would keep him from achieving HIS American Dream and Obama told him that his policy would help bring him more customers.
The Plumber did not buy what Obama said in fact he said after speaking with Obama he is more frightened by Obama's responses to his question than he was before. It was clear to him that Obama does not understand how small business operates.
Obama's tax policy means for this plumber that he needs to be less successful and not grow his business. Not buy those extra trucks nor hire the extra plumbers who would use them. So instead of expanding and hiring more employees as he had hoped to do this coming year- Joe actually might need to reduce his payroll and even cut back on current staff.
Then there are the mysterious fines Obama wishes to put on small businesses who do not provide health care for all there employees. A fine that despite Senator McCain's requests during the last debate, Obama failed to define in actual dollars. As a small business owner I can not afford health insurance for myself much less for anyone else .
And when Obama claims he will cut taxes for 95% of Americans, Obama is also not being direct with us. The math does not compute. Between 35% to 40% of Americans are not paying income taxes now. Which means that the we are really talking about well fair since you can not return money to someone who did not pay money in to begin with. Obama knows better than to call it what it is so he hides it by calling it a tax cut. Today the main economic Obama guru and economic advisor danced around this very issue of wealth redistribution until he finally had to admit during an interview -- that if a single person or their businesses makes $200,000 ($250,000 for couples) that they will have to pay more in taxes and their money will be redistributed to people making less..including those who pay NO income tax at all.
Obama says that Bush's tax cuts were part of the problem. So what does that tell you ? He thought Bushes tax cuts were too deep and not only for the rich so Obama will reverse the Bush across the board tax cut which means Our taxes will ALL go up.
Obama will then give you his tax cuts to replace the Bush tax cuts but the new tax cut's will not be as deep for middle class Americans as they currently are now. In actuality most of us who are middle and lower middle America will see a tax hike. This was charted out clearly by the American Enterprise Institute. An economic tax watch dog group.
Obama plans to set the Corporate tax rate at set 35% , however he is even tougher on small business and some small businesses will find themselves taxed as high as 68% allowing those business to keep only 32 cents of every dollar. The higher business and corporate taxes will result in more business closures and more corporations setting up shop outside the country. Already Ireland is seeing an increase in prosperity since they lowered the corporate and business tax rate to 11%. Microsoft is one example of a major corporation taking white collars jobs out of the country and setting up shop where they can take advantage of the 11% rate and who wins besides Microsoft? The people of Ireland who are getting the jobs and the economic boost to their country.
Obama's policy will force small businesses to make more tough choices than they already have A) We will see a significant increase for cost for goods and services as businesses struggle to close the tax gap or face going out of business all together B) Many businesses will be downsizing because they just can not afford to keep a full staff and pay additional benefits resulting in more unemployment -Just what we need.
So lets once again examine what Obama said. I will help by dropping the political posture that Obama uses and translating his economic policy into words that actual say it like it is.
Joe you make too much --there are people who do not make as much as you-- I am going to come and take more of your hard earned money by raising your taxes and I will spread it around -- redistribute the wealth to someone or more likely to some bureaucracy, that my administration deems worthy. In a nut shell socialism. It will leave us seeing red all the way around.