Are They Truly That Stupid?

Barack Obama is a Socialist. The “Joe The Plumber” incident finally brought to light the hidden agenda of Obama and the rest of the Socialist left when he came right out and said that he wants to spread the wealth around, although his running mate, Joe Biden, later denounced this statement. It all hinges on his ‘spread the wealth around’ comment. Redistribution of wealth is a key tenet of Socialism, and Barack is now completely ignoring the surfacing of a 2001 radio interview in which he told the interviewer that our constitution is flawed in that it led to the “flawed” state that the US is in today. He also commented on the Supreme Court’s inability to enact “redistribution of wealth” (Obama’s exact words).

So here we are. Obama is out of the closet. But will we still remain voluntarily blind to his true agenda and to the consequences of that agenda? Yes, we need change, but to enact Obama’s change would be the same as if you saw a hurricane tracking to hit your home in the gulf coast and, rather than lose it to the hurricane, you blow it up. Well, you no longer have anything to fear from the storm, but you don’t have a house either. Obama and his gang want to recreate America with their own vision. That vision is of the Socialist countries whose economies have failed time and again. Increasing taxes and allowing the government to provide equal (but substandard) services to all. The common factor of all those countries is that they rely on government for everything. Just look at the socialized health care of any country that has it and you will see that those people that can afford it come here for medical care.

Welcome To The United Socialist States of America

A couple of things came out today, the first of which is that Obama has reduced his max income cap from $250,000 to $150,000.

Follow up:

That’s HUGE. You have now included every small business owner in the country. Any business earning less than $150,000 a year either has no employees or is a part-time cottage business. You wouldn’t want to work for a business this small. Trust me, I tried it and you won’t dig it. So, every business in America is looking at a tax increase. As I mentioned in an earlier post, these business will face some options when dealing with this new tax rate. One is just to pay the tax. Profits will shrink, and the lifestyle of the owner will be curtailed. This might be an option for a business owner who makes enough that a doubling of the tax won’t hurt that bad. Logic dictates that no one will opt for this.

Next is to look for other areas to make up this shortfall. Some of the ways would be to not invest in growth of the business. That means no new facilities. (So the construction company loses a bid and has to cut jobs). No additional staff and possibly layoffs. (If you’re one of the lucky ones who gets to keep your job you can expect an increased workload, and that raise? Forget about it!) Reducing or eliminating research and development. R & D is the innovation that makes new things possible. American’s have always been innovators and that’s what we have exported to the world. Not just new things, but new processes and new ideas as well. Development of those things requires capital investment, but corporations will no longer have that capital to invest because it’s being taken from them to provide for the guys that lost their jobs because of the tax increases. This option will be looked at by every business that answers to investors. When they fronted the money for the business they were promised a certain level of return on their investment, and it is unlikely that will be renegotiated because of an increased tax liability.

Which brings us to our final option: Higher prices. When business owners and investors see their profits being jacked by the government they will be forced to raise prices. In a free-market economy, competition keeps prices low. But when tax increases take place across the board like Obama is proposing companies will not hesitate to raise prices because they know their competition is in the exact same predicament and will be forced to increase their prices as well. Don’t believe me? What happened when oil prices went up? Fuel prices rose, as did the cost of everything that’s transported by planes, trains or trucks regardless of which grocery store you buy from, because they were all hit with higher prices for transportation. When they’re all hit with higher taxes, you will feel it again. Even those of you that earn less than $150,000 a year. So while you won’t see an income tax increase per se, you will be forced to pay the higher taxes levied on business in the form of higher prices. And the worse news is that if we are ever lucky enough to get back to an administration that lowers the taxes, the higher prices are unlikely to come down soon after, if at all.

The other thing that came out today is that George Miller has plan to snatch your retirement account. This is not Barack’s plan yet, but if elected, I think you will see it enacted in short order. Miller, (D-Ca) wants to repeal the tax credit for your 401(K) or IRA contributions. This repeal of the tax credit will infuse an estimated $80,000,000,000 a year into the government.

But that’s not all. His plan is for the Social Security Administration to seize your account, converting it from whatever yield you were getting in the free market to Treasury Bills, guaranteed by the government, but at a 3% annual yield. The cash taken from you would then be used to shore up the sagging Social Security system in an attempt to prevent a collapse.

You would be allowed (maybe required?) to continue to contribute 5% of your income to the “new” Social Security system and you would be given a $600 check to replace your tax deduction.

At retirement time, you would get a check from the Social Security Administration.

So I guess if Obama gets elected it will officially be Miller time.