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EDITORIAL: Obama's tax reform

It's all a matter of 'justice'

Not even three months into his presidency, Barack Obama already has developed a nasty habit of making grandiose promises and proposals, doing precisely the opposite of what he says and celebrating his hypocrisy and insincerity as a policy triumph.

Keep lobbyists out his administration? That lasted a couple of days. Lead a new era of fiscal responsibility? His agenda will run up budget deficits that George W. Bush couldn't have dreamed of. No tax increases of any kind for households earning less than $250,000 per year? He signed off on a huge cigarette tax hike that will pummel the poor. His populist criticism of rich, corporate fat cats and cheers for working families? He's bailing out every board room on Wall Street on the backs of taxpayers not yet born.


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  • And on and on and on.

    So what are we to make of President Obama's tax-day declaration that he will pursue "a simpler tax code that rewards work and the pursuit of the American dream"? Are we supposed to laugh? Or just concede that the president's latest idea of change will amount to the status quo on steroids?

    "For too long, we've seen taxes used as a wedge to scare people into supporting policies that increased the burden on working people instead of helping them live their dreams," President Obama said. "That has to change, and that's the work that we've begun."

    What Mr. Obama is saying here has nothing to do with tax simplification and everything to do with his "social justice" agenda -- his overriding belief that the federal government must ramp up the redistribution of wealth in the name of "fairness."

    Read the first sentence of the president's quote again. He's referring to the country's current income and capital gains tax structure, signed into law by President Bush at the start of this decade. Mr. Obama believes that allowing the affluent and the upper-middle class to keep more of their own money is a "wedge issue."

    He is saying that even though the bottom 90 percent of earners pay only 28 percent of all income taxes -- the bottom 40 percent pay no income taxes at all -- they have been frightened into wrongly believing that more punitive tax rates on the top 10 percent will damage the economy. Mr. Obama believes that having the top 10 percent of taxpayers pay 72 percent of the nation's income taxes has "increased the burden" on the other 90 percent -- when that same 90 percent paid 32 percent of all income taxes in 2001, before George W. Bush's tax cuts became law.

    The top 10 percent of taxpayers have seen an increase in their burden this decade, not the bottom 90 percent.

    President Obama's efforts -- "the work we've begun" -- involve having significantly more filers pay no income taxes whatsoever. His proposed "Make Work Pay" tax cut would increase the percentage of households that do not pay income taxes from 40 percent to 50 percent. This, according to President Obama, is fair.

    "It will take time to undo the damage of years of carve-outs and loopholes," Mr. Obama said. "But I want every American to know that we will rewrite the tax code so that it puts your interests over any special interest."

    Who is the president trying to kid? He's not talking about reducing the Internal Revenue Code down to a pamphlet that can be explained in a few minutes. He wants to retain the same Byzantine abomination that has been used by Congress for generations as a tool for social engineering.

    His ambitious, expensive social agenda demands revisions to the tax code, but not reductions. He wants to get rid of perceived "carve-outs and loopholes" that have prevented the financially stable and the wealthy from paying as much in taxes as he thinks they can afford to pay. He wants some industries, especially the oil business, to essentially hand over their bank accounts.

    President Obama will preserve the multitude of tax credits and deductions that allow the lower and middle classes to keep virtually all of their income. The only genuine simplification Mr. Obama has in mind is the elimination of many standard deductions -- for the rich, of course.

    It is not in the national interest to have the few pay the bills of the many. It erodes the incentive to work and increases pressure on the country's most productive taxpayers to support an increasing number of tax consumers. Everyone must have a fiscal stake in their government.

    This is another phony pitch from the president.

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    Thanks Fred wrote on April 17, 2009 09:12 PM: for proving my point.Why is it that you see people excersising their Constitutional rights as a threat? I don't recall seeing you whine irrationally about Cose Pink,Moveon, or any other Sorros funded groups.


    Fair and Balanced Fred wrote on April 17, 2009 06:57 PM: Help for cognitively challenged Republicons:

    GRASSROOTS:

    1 : the very foundation or source.
    2 : being, originating, or operating in or at the grass roots .

    ASTROTURF: A trademark used for an artificial grasslike ground covering.

    Yep. Tea Parties, funded and organized by Republican billionaires: artificial and grasslike, not "grassroots".

    The Republicons cannot lead, so they consistently mislead.


    Hey Fred wrote on April 17, 2009 06:24 PM: Try staying away from Huffington and Daily Kos for just 1 day at first,then stretch it to 2,and so on. Eventually,with lots of hard work,you may be able to generate at least rudimentary thoughts on your own.Why was Samson Obama denied entry to the U.K.?


    Fair and Balanced Fred wrote on April 17, 2009 05:27 PM: "Grassroots" Tea Parties. Tell us another one, Republicons!


    nowoolinmyeyes wrote on April 17, 2009 05:01 PM: To paraphrase that modern philosopher and sage, John What's-his-name, "You cannot be serious!" The tax whiners, including the editorial author, come out of the woodwork when the privileged status of the wealthy is threatened in any way. They talk about redistribution of income and socialism now, but ignored the very effective campaigns by the wealthy during the last several decades to redistribute wealth and to repeatedly reduce their taxes. They didn't mind using their tax structure to promote their own social agenda, but when the shoe shifts to the other foot, they don't hesitate to scream bloody murder.

    It would be helpful if instead of using sarcasm and misrepresentation, they would stick to the facts. A little historical perspective would also be enlightening. During WWII and most of the 1950's, the top rate for the income tax was more than 90%. It applied only to income exceeding a given sum, so noone actually paid that on their entire income. With that high rate, we managed to send hundreds of thousands of returning GI's to college or for training, and the middle class grew to its largest representation in the country. Unions became powerful enough to adequately represent working people and their salaries and benefits rose to unprecedented levels.

    I realize that it is not politically correct among the tax-whining crowd to appreciate the role that working people and unions played in making this country great. But it was not them or Obama or the Democrats that put us in the economic mess we are currently enjoying. They didn't send jobs overseas or hide their income in offshore accounts. They didn't hire lobbyists by the dozens to obtain one tax break after another. No, thank your wealthy buddies for that.


    randy wrote on April 17, 2009 04:23 PM: It won't be that great sweetie.

    Obama is Bush Lite on international relations and Bush on Steroids on government spending. On education he claimed to be a reformer, but has bent over for the unions and is now threatening to throw 1700 low income kids out of good schools because his donors hate the concept.


    azstripper wrote on April 17, 2009 03:58 PM: As always, We wind up with experts coming out of the woodwork, popping out of holes,and making themselves geniuses in taxes, politics, Religon, and generally everything they read about in their local newspapers!.
    I myself am very glad George W. Bush happened! Sometime in the future we will all realize how we let this happen and perhaps never let it happen again. George has become the Epitome of Chaos and destruction to the american economy, our way of life, and it will be a very long time before our nation can drag itself out of this nightmare. However it is all our culpa, mia culpa, mia culpa, mia culpa!... Well we got exactly what we asked for!! Now his poor ole party is walking, and talking like blithering Idiots, lost, with no place to go. Well they deserve that too! WE THE PEOPLE is what placed Obama in the whitehouse not the democratic party!. The GOP has no idea how to protect themselves or stratagize against the WE THE PEOPLE program. Isn't that neat??.
    So please, stop your moaning, and whining, read our constitution,listen to it mostly, obey our laws, rules, and regulations, stop acting and sounding like ignorant fools, enjoy what little you have of your lives (It don't last too long) Listen up, we have eight more glorious years of this you will learn to like it I GARANTEE it!!! Lots O Love azstripper


    Hey Fred wrote on April 17, 2009 03:20 PM: Why was Obama's brother denied entry into the U.K. Fred? I don't see you bringing that up.

    Patrick: Should Obama return the campaign contributions and inaugural contributions he received from bailed out companies?


    payer wrote on April 17, 2009 03:12 PM: I couldn't agree more with the article.
    It's all about income redistribution.
    The Obamites will enact the largest new tax on energy consumption, but will make it "fair" by handing out more welfare to "those who can least afford it."

    From those, according to their ability,
    To those, according to their need.

    Any questions?


    Comment Doctor wrote on April 17, 2009 02:19 PM: Fair and Balanced Fred- have you had your medication today to re-store balance? In the future, please take your medication so you may post good comments.


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