Senator Obama plans to raise the corporate tax rate. I am frustrated by our economy as much as the next guy. I would not mind watching corporations take one on the chin. I believe many voters share my feelings.
However, upon closer examination of the actual impact, this proves to be an economic folly. Reflective of Senator Obama's poor judgement and inexperience.
The US. currently has the second highest corporate tax rate in the world, and is full of loopholes. Obama's proposal to raise the rate even further, will drive more companies overseas. They will take their jobs with them. Compared to much of the world, out labor costs are already cost prohibitive. Increasing the tax rate makes locating or continuing operations in the US even less attractive.
One of my best friends lives in Titusville, Fla. Sophie Clark, aka, Titusville Mary, claims to be undecided in this election. Sophie cleans houses for a living. Her boyfriend, Jeff is retired military, and works one full time job, while maintaining a second part time job. Jeff is behind Obama.
Like so many voters they like the eloquent speeches Obama gives; failing to recognize the vagueness of his words. They do not foresee the implications of Obama's proposal. They do not realize that a ten percent increase in the corporate tax rate will affect them directly.
Sophie and Jeff have not thought through the issues, such as this. Raising the rate is going to drive away companies and jobs. Remaining companies are not going to absorb the tax increase. The voters are. Companies are going to offset the increase by laying off workers, cutting investment, and increasing their prices. This will drive up unemployment, prices and inflation. At a time America can ill afford it.
Imagine a ten percent increase hitting your monthly expenses. Your household's monthly operating expenses (minus mortgage), will be going up at a rate reflective to this tax increase. If you currently have an $1,000 overhead, add 10%.
The gallon of gas and milk that already seem expensive will be even more under Obama's plan. Sophies boyfriend is remodeling his home. This plan will add to the materials cost of this seemingly endless endeavor. Sophie has her home in state of perpetual renovation. This will be taking the wind out of her sail.
McCain wants to take out the loopholes and lower the rate. By lowering the rate, he will appeal to companies to remain in the US. Saving Americas jobs. By closing the loopholes, McCain will actually increase the revenue.
Obama's tax break to working families will not offset this corporate rate increase and the affects on consumers wallets. It will hit American consumers the same as if Obama raised the taxes of all Americans, because all Americans will be paying for it. Someone once said you can put lipstick on a pig, but it is still a pig. America get ready to squeal!
As for Obama's tax break to 95% of Americans, it is another expansion of an increasingly socialist program. A twist on redistribution of wealth. Currently, approximately 35% of Americans do not pay any taxes. Under this plan they will get this "tax break" at the expense of legitimate taxpayers. Spreading the wealth does not help in the long run. It merely serves to decrease incentive for workers to strive to get ahead.
Add to this, Obama's plans for bringing back the 'Death Tax', adding to the already overtaxed small businesses tax liability, and we have a prescription for economic disaster. Small business is where jobs are created and Obama wants to stifle this growth.
The Senator from ACORN lacks the experience and judgement to recognize what is best for America. Rhetoric is not a viable plan and is not a substitute for experience.
I do hope Sophie and Jeff think things through between now and the election.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment