So did you all hear about the awesome cap and trade stuff that President ObamaTheOneKenobi is introducing? First off what the heck is cap and trade? In a nutshell it is federal government putting a cap on pollution emissions. That’s a good thing right? Well, we need to look just a little under the shell and discover that there are going to be increases in our energy prices. Why are we doing this? To stop the global warming that is not really happening (oh I mean climate change)! Yeah!!!! Then of course the manufacturers here in the U.S. will be punished and then more Americans will lose jobs. Neat!
So, when a politician was asked about the rising energy prices due to cap and trade they responded that we are all getting a tax cut that will help us pay those higher energy prices. So, us 95% of Americans who will be getting $13 dollars a week will be able to use that money to pay for our rising energy prices! Yeah!!!! So, it is basically zero gain. Nice.
Now another thing President ObamaTheOneKenobi is introducing $989 billion in new taxes over the course of 10 years starting fiscal year 2011. I love that it is 989 billion, it’s like the .99 cent store. It’s not a dollar and it’s not a trillion.
Here it is:
1) On individuals making $200,000+ or households making $250,000+
$338 billion-Bush tax cuts expire
$179 billion-eliminate itemized deduction
$118 billion-capital gains tax hike
$17 billion-Reinstate Superfund taxes
$24 billion-tax carried-interest as income
$5 billion-codify “economic substance doctrine”
$61 billion-repeal LIFO
$210 billion-international enforcement, reform deferral, other tax reform
$4 billion-information reporting for rental payments
$5.3 billion-excise tax on Gulf of Mexico oil and gas
$3.4 billion-repeal expensing of tangible drilling costs
$62 million-repeal deduction for tertiary injectants
$49 million-repeal passive loss exception for working interests in oil and natural gas properties
$13 billion-repeal manufacturing tax deduction for oil and natural gas companies
$1 billion-increase to 7 years geological and geophysical amortization period for independent producers
$882 million-eliminate advanced earned income tax credit.
I confess with complete honesty that I don’t understand what the flip these all mean. But, here is what is pretty clear to me. The people who employ Americans are going to get taxed a bunch. They are not going to just eat those increases they will pass it on to the middle class and then it spirals down. The rich will get less wealthy which eventually means that the poor will get poorer. Another couple of things, did you notice all of the taxes on oil production? The prices of oil will go up. The chances of us drilling for oil in the U.S. are ever decreasing. I understand the need for alternative energy sources, but it is going to take a while. In the meantime we need oil! One more thing. The itemized deduction elimination is not specific on that list. But, one of the things that people can deduct is charitable giving. That will be taken away. Americans are some of the most giving people in the world. But, the government by degrees is even taking that away from us. The government is trying to take control of every human need and they are taking away this small reward for giving. Yes, I will continue to give to charity whether or not I can get a deduction for it, but it is fascinating to watch this socialization process.
A couple notes on economics. You keep hearing liberals tell us, or shout at us, that trickle down economics don’t work. Of course trickle down economics work! Increasing wealth in the nation as a whole will bring about increases on all classes. If you decrease taxes on the wealthy and on businesses then they can pass down lower prices to the rest of us. Trickle down poverty also works. If you tax the rich they pass it on down until eventually the middle class gets poorer and then the poor get poorer. Yeah!!!
Instead they preach trickle up economics. You give money to the poorer classes who then start to spend which goes to businesses and then on up. But, how far up is it supposed to go? In fact there is only one way that things can trickle up, and that is if there is something on the top that is creating suction, you know like a straw. So, my question is if trickle up economics is supposed to work where does the money end up. Then it dawns on me. It does not stop at the businesses. They will get the stuffing taxed out of them. So, it ends with the government. That’s right folks our current government SUCKS!!
Yet another rant, hmmm I sound a little disgruntled.
God Bless Americans in every economic class.