Tuesday, October 21, 2008

100% tax on those earning less than $250K

Obama has said that he will only increase taxes on those individuals that earn over $250K a year, the "rich". This will effectively work out to a 100% tax on many that earn less than $250K per year. I refer to it as a 100% tax because if you do not have a job, your take home pay is the same as if you have a job and are taxed at a rate of 100%.

What Obama's constituents cannot seem to understand is that when you increase taxes on "the rich", they cut back on their consumption of all sorts of goods, and services. And guess who builds, transports, sells and maintains all those products or provides all those services? Answer: Mostly people making far less than $250K a year! As the demand for these goods and services decreases, so does the demand for the people involved in providing them, thus job losses, and in an Obama world, potentially massive ones.

If you earn less than $250K per year, the last person you want to vote for is Barack Obama. It is like Obama voters are happily drifting down a gentle stream and cannot see the huge waterfall around the bend. Only as they plunge over the falls (a metaphorical pink slip) will they realize their mistake.

Rush Limbaugh calls Obama's economic plan "trickle up poverty". The master has hit the nail on the head yet again!

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