America, You Asked For It!

Political News and Commentary from the Right

Middle Class Tax Relief

Continuing to dissect Obama’s Blueprint for Change, today we’ll take a closer look at his plan for middle class tax relief.

Provide a Tax Cut for Working Families: Obama and Biden will restore fairness to the tax code and provide 150 million workers — 95 percent of workers — the tax relief they need.

The plan calls for a refundable tax credit of $500 for 150 million American workers. That’s going to cost $75 billion that has to come from somewhere. From everything I can find, this will be in addition to the Earned Income Credit. This article on Wikipedia claims that 21 million Americans received $36 billion under the EIC for tax year 2007. So Obama plans to triple the cost of this wealth redistribution scheme in an effort to make 130 million more Americans dependent on the government.

Create the American Opportunity Tax Credit: Barack Obama and Joe Biden will make college affordable for all Americans by creating a new American Opportunity Tax Credit. This fully refundable credit will provide $4,000 a year for college education.

Another refundable tax credit! If you didn’t click the link to see the definition above, these credits have the capacity to reduce a person’s tax liability to less than zero. The net effect of this will be to pay students $4000 each year for college. Again, this appears to be in addition to $4,050 Pell Grant already available to most of these students.

The only requirements for receiving this credit appear to be enrollment in college and 100 hours of community service. I see no performance standards, attendance standards, or the like listed. The lack of such standards already plagues the Pell Grant program. Some students enroll in low-cost college programs for the specific purpose of receiving this grant and subsequently fail the class or even never show up for class. In other words, there is a subset of our society that abuses this program to effectively receive a government handout. Unless strict requirements are put in place to prevent this type of abuse, this will become just another redistribution of wealth in too many cases.

Barack Obama and Joe Biden will reform the Child and Dependent Care Tax Credit by making it refundable and allowing low-income families to receive up to a 50 percent credit for their child care expenses.

Currently, this credit is non-refundable and covers up to 35% of the first $3,000 for families with one child or 35% of the first $6,000 for families with 2 or more children. Obama’s blueprint claims this set up disproportionately benefits upper-income families. That’s only because it’s a tax deduction, not a damned welfare program! I can’t resist it any longer, I have to quote Marx here…”From each according to his ability, to each according to his need.” Someone please tell me again this slogan doesn’t apply. This is making me absolutely sick!

Simplify Tax Filings for Middle Class Americans: Obama and Biden will dramatically simplify tax filings so that millions of Americans will be able to do their taxes in less than five minutes.

The blueprint claims this will save up to 200 million hours of taxpayer taxfiler preparation and aggravation and $2 billion in paid preparer fees. Newsflash–the 1040 EZ is pretty damned simple already! I’d bet most taxpayers taxfilers will continue to use paid preparers if only to get the refund advance they offer.

Barack Obama and Joe Biden will eliminate all income taxation of seniors making less than $50,000 per year.

What, no refundable tax-credit? Perhaps they didn’t think this one all the way through yet. This is one I might actually be able to support if the description in the blueprint is accurate. Although, this is going to create a huge burden on the younger generations as waves of baby-boomers retire.

I guess the thing that troubles me the most about Obama’s plan is that his refundable tax credits are disguised as tax cuts–they’re giveaways. I’m absolutely sick and tired of politicians and the media calling government giveaway programs tax cuts. A tax cut reduces the amount of tax one pays, it doesn’t give someone more money than they pay in taxes! That’s welfare my friends, or a redistribution of wealth.

If Obama plans to hand all this money out, it has to come from somewhere. This is redistribution of wealth, no two ways about it. Though they try to disguise it, the requisite philosophy is that the state–or the populace–owns whatever it deems as one’s excess income. If this plan is enacted as outlined, we’ll be one step closer to becoming the United Socialist States of America.


November 10, 2008 - Posted by | Obama | , , ,

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