Tuesday, September 2, 2008

Joke of the Day

The Hussein Obama camp has been touting a laughable tax cut for 95% of people. This is an outright lie. I don't mean that because it will only apply to 93%. I mean because that notion of a tax cut for anyone coming from the most liberal Senator is a lie.

The lie is exposed very succinctly here.

Americans however being the gullible fools they are will believe this lie. Oh gee Sally, I hear that lovely Barrack fellow is going to cut our taxes, while that mean old McCain will only be cutting taxes for the E-V-I-L R-I-C-H people.

Too bad that moron Sally doesn't realize she doesn't pay taxes to begin with. A married couple with kids making under $75K pays virtually no taxes today. Under $125K that couple pays $10K in taxes, again virtually nothing. It's only when you get above that level where the taxes start kicking in. Not because the marginal rates go up, but because all the deductions start phasing out. So no more child deduction. No student loan deduction. No IRA deduction. All those tax avoidance schemes go away around the $110K to $125K income level. What Hussein Obama will do is get rid of those deductions much earlier, in some cases get rid of them for everyone. He will do that while at the same time lowering marginal rates but by a lesser net amount. And he will raise the capital gains tax on top of it all which will affect everyone at all income levels either directly or indirectly via pension funds, 401k accounts, IRAs, etc. It is the equivalent of putting $2 in your front pocket and taking away $3 from your back pocket. I wouldn't expect anything else from someone who was raised on the streets of Jakarta.

But since most Americans don't even know what a marginal tax rate is, they'll never know the difference. Some Americans (God I hope not most) think that if they get an IRS tax refund check, it means they don't pay taxes. Yes, there are people that economically illiterate around, and a lot of them too. It is with this level of stupidity among the American public that a man like Hussein Obama can get elected. And when Sally's tax increases by 50% she won't even notice it because she'll get a tax refund check at the end of the year and think all is super duper fine.


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