During the campaign, Obama repeatedly stated that he would cut taxes for 95% of Americans AND simultaneously reduce the deficit. Somehow, the voters had an interruption of brain service and actually fell for this ploy, without consideration for reality or history.
For starters, if we just consider basic math, it is a problem. Before considering this ridiculous lie as if it were true, the government already spends more money than it collects. So for it to collect less, even if doesn't spend more, it cannot possibly reduce the deficit. There is no denying it. The math is fuzzy.
Now if we consider the "95%" part of the promise, it is an insult to our intelligence. There is an estimated 300 million Americans. If in "Obamaworld" (not to be confused with the real world), 95% don't pay tax, that means that 5% or 15 million people would be the ones who pay. Obama and the democratically controlled Congress spent 3 TRILLION dollars in the first year of his administration. So even if the deficit were not reduced, Obama thinks those 15 million would be paying off their first year's spending of 3 trillion. Really? How much does he think these people make? Has Obama ever heard the expression that you can't get blood from a stone?
In addition to the drunken sailor spending of 2009, Obama has proposed a "spending freeze" in his SOTU address for the next 3 years. Should we be celebrating? No. Did Obama and Congress suddenly grasp the meaning of fiscal responsibility? No. It is just another scam. After devoting every waking moment to whining about Bush and what he "inherited", Obama raised the 2009 budget by approximately 20%. Freezing an already bloated budget is certainly not worthy of applause. To add insult to injury, while freezing the exhorbitant budget means they can't spend more, it also means they can't spend less!
So if we do some quick math, that's 3 trillion a year, for 4 years, totalling 12 trillion. Wow, those 15 million folks sure are going to be poor paying for it all. I don't know who these people are, but common sense dictates that it is impossible. At a 40% tax rate, this would mean that those 15 million people would have to generate 7.5 TRILLION in income PER YEAR, just to sustain the government's bloated budget each year. And this wouldn't even put a dent in the deficit which is increasing by the day just on interest alone.
The impact of these taxes being paid by the 15 million people would be a drastic drain on the economy. The money literally sucked out of the economy and lost in the government coffers would result in companies closing, more jobs lost, and propel America at warp speed in a downward spiral into a pit of despair. So much for all that "hopey changey" stuff.
So now it seems that Obama has realized it is time to renege on his lies. Who will pay for all the spending? Subtlety, by stealth, he is planning to INCREASE taxes on the 95% of working Americans. The middle class is the target.
So what is Obama thinking? Why not steal from the Americans that work for a living? Why worry about the millions that are unemployed? After bringing the top 15 million into poverty, they'll just take from those that have even less. Someone has to pay for Pelosi's botox and 100k bar bills, and of course all those White House parties.
While Obama may try to pretend he isn't increasing taxes, his actions or rather non actions will have a significantly different result. By allowing the Bush tax cuts to expire, all the tax rates will automatically increase, right down to those in the 10% bracket which will disappear. It leaves you a warm and fuzzy feeling, doesn't it? Don't worry. After campaigning nonstop about cutting taxes for 95% of working Americans, Obama is now going to reach his grubby hands into the pockets of the middle class, and take everything down to the lint, including anything fuzzy. As the DEMS unravel the economy, it is now only a matter of time before they run out of pockets to pick, and leave us all out in the cold.