SUBSCRIBE:
Error: Unable to create directory uploads/2018/07. Is its parent directory writable by the server?

MSNBC: Obama's "Tax Cut" Becomes a Massive Tax Hike

by
Posted on July 17 2009 12:54 pm
Be Sociable, Share!
Print This Post Print This Post

On MSNBC’s Morning Joe program, columnist Mike Barnicle asked Meet the Press moderator David Gregory about the possibility that the Obama administration, in order to fund universal healthcare, will seek to impose a tax on the medical benefits that American workers currently receive from their employers; in other words, to treat the dollar-value of those benefits as though it were actual income, and to tax it at the same rate as the rest of the workers’ income. As Barnicle noted, “some powerful Democrats in the Senate are in favor” of such a plan even though they, like Barack Obama, opposed it during the 2008 campaign.

If the Democrats get close to passing a universal healthcare bill, Gregory speculated, “I think the White House would be open to that [taxing medical benefits like regular income].”

Then Gregory identified the key issue:

I think the biggest problem with it is they [Obama and the Democrats] open themselves up to the charge that they’re going to be taxing, you’re going to effect a tax increase on people making less than $250,000 a year, which is what the President vowed he would not do.

Consider what such a plan would mean to the average American taxpayer — you remember, the man or woman who is among the “95 percent” of the American people whom Obama bedazzled during the campaign with his bold promise of a tax cut. That tax cut, it turned out, would net each American taxpayer a paltry $8 to $13 per week.

Moreover, it should be noted that for tens of millions of people who were paying no taxes to begin with, it was not a tax cut at all, but rather a government check whose sole purpose was to expand the number of Americans dependent on government handouts (and, by extension, the number of Americans voting for the party responsible for distributing those handouts, the Democrats). As the Washington Times pointed out:

[Obama’s] plan would send checks to tens of millions of tax filers who pay no personal income taxes — payments that critics say look “suspiciously like welfare” … Because the IRS says that nearly 46 million tax filers — one-third of all filers — had no tax liability in 2006, there is the question of how millions of Americans can receive an income “tax cut” when they pay no taxes.

If Congress and President Obama now impose a tax on healthcare benefits, that tax will cost each taxpayer — depending on his or her income bracket and medical plan, and on the specifics of the new tax itself – an additional $1,000 to $4,000 per year.

And don’t forget about the cap-and-trade monstrosity that the House of Representatives passed three weeks ago, and which will now be considered by the Senate. If that gets signed into law, the average American household will pay yet another $3,100 in extra hidden taxes each year.

Moreover, Obama has pledged to permit the Bush tax cuts (on income and capital gains) to expire next year, a move — or rather, a non-move — that will more than offset the aforementioned pittance that Obama gave to taxpayers in early 2009. (The Bush tax cuts were 50 percent greater than Obama’s.)  The fact that Obama will allow the Bush tax cuts to expire is no surprise, of course, but merely a fulfillment of what he said, quite candidly, during the presidential campaign:

If we tabulate the sorry figures above, we find that the American taxpayer, who was promised a tax cut if he or she earned less than $250,000 annually, will in fact be paying anywhere from about $4,000 to $7,000 more in taxes each year.

And just think: Our benevolent President will have achieved all this in less than a single year in office. Imagine what surprises he has in store for us next year. Perhaps yet another tax cut. How exciting.

Be Sociable, Share!
2 Responses leave one →

Leave a Reply

Note: You can use basic XHTML in your comments. Your email address will never be published.

Subscribe to this comment feed via RSS

Copyright 2018 NewsReal Blog

The Theme Foundry