The Washington Times reports on the fuzzy numbers behind Obama’s tax “cut”. WashTimes looks at the rather questionable assertion that you can give a tax cut to people who already pay no taxes. To achieve their goal of “cutting” taxes for 95% of America, it seems Team Obama will simply take $500 or $1000 from some people, and give it to somebody else – no questions asked.
That idea caught the attention of AFP’s Phil Kerpen (a very bright guy):
It’s got to raise alarm bells when you claim you are going to cut taxes for 95 percent of working families when more than 40 percent of them pay no income taxes.
Obama’s folks are justifying this wealth redistribution scheme by suggesting that Social Security taxes paid are now “refundable” through income tax rebates even if no income taxes were paid.
Unlike conservatives who have consistently pointed to the cumulative amount of taxes, the Democrats have suddenly discovered the “total tax burden”. They will use income taxes paid by some to rebate back Social Security taxes paid by others.
How exactly will that work, given that the Social Security trust is broke and about to start paying out far more that it takes in? Well, I suspect we’ll soon see another “soak the rich” campaign removing the social security cap so “the rich” will see dramatic increases in Social Security taxes to make up for the gap created by Obama’s rebates.
If you doubt that, you should read the quote from Obama’s campaign advisor. It may be the scariest thing you’ll ever see in print.
“Senator Obama believes that the tens of millions of families working hard and paying payroll taxes do not think that tax cuts are a form of ‘welfare’ or ‘redistribution’ – they think it is only fair to reward work,” said Jason Furman, the Obama campaign’s chief economic adviser.
You heard that right. Work that results in someone not getting ahead is to be rewarded with money taken from those whose work results in them actually making money (which is apparently work that needs to be punished).
An Obama administration will first absolve a huge segment of taxpayers from any tax responsibility at all, and then shift that obligation to those who create jobs and get ahead. The wealth redistribution schemes the Obama team wants to put in place should scare the bejeezus out of anybody with one ounce of grey matter in their brain case.