Friday, October 10, 2008

A Thought For The Day

The other day, I heard Jack Kemp make a statement that deserves a bit of reflection. Keep in mind that I am paraphrasing, but there is nothing lost in this.

On Obama's proposal to raise taxes on the upper 5% of wage earners and to give tax breaks to the bottom 95%, he characterized it as a means to punish the rich as a means to make people more equal, which is a mantra of every devoted socialist. Here is crux of his poignant remarks:

The way to make things fair is not to punish the rich by making them poorer. The way to make things fair is to make the poor richer.


This means to create opportunities for them to earn more, through hard work. This means allowing rich people to have the opportunity to create jobs for those poor people.

When a business owner or a corporation is taxed at a higher rate, the consumer will pay the tax. Why? Because the extra tax is part of the cost of doing business and is subsequently passed on in the price of the good or the service. As price rises, demand lessens. As demand lessens, sales decrease. When sales decrease enough, layoffs occur.

So when Obama says he doesn't want to raise 95% of the people's taxes, he is lying. When he says this tax increase on the wealthiest of people will level the playing field for all, he is dead wrong.

12 comments:

Greg said...

Always liked Jack Hemp. :)

Z said...

zimkbdbThat's exactly true. Some others have been saying the same thing; How do you call it a tax break for the poor when they're going to be paying higher prices for everything because companies had to raise prices to afford their tax increases?

My husband doubts the statistic that "95% of all small business make less than $250K a year." I wonder about that, too.

And, who amongst us didn't hear Obama infer that "Raising taxes on corporations will keep jobs here!"? WHAT?

Jack Kemp is so right; this information needs to be clearly presented by the McCain camp...and FAST!!

A.C. McCloud said...

Do any amount of research on Obama and this makes perfect sense. He's been associated with the "living wage" and "affordable housing" proponents and spares no venom for corporations.

So whether he's a moderate liberal, New Party member, Black Liberationist, or Social Democrat, Obama clearly believes that income redistribution is the only "fair" way to run America. Why should we think he'll do anything different once elected?

Jennifer said...

{The way to make things fair is not to punish the rich by making them poorer. The way to make things fair is to make the poor richer.}

That line truly says it all. People think "rich" and high taxes should be synonomus with each other. They dont' realize that these companies hire employees.....without businesses employees are squat! Good post.

Mustang said...

I agree with Kemp, and I'm glad you posted this. Here's yet another thought: being rich has nothing to do with how much money you have.

Well, at least that's what I keep telling the editorial staff here at Social Sense

LASunsett said...

//Always liked Jack Hemp.//

Let the record show that Greg, a devout NE Patriots fan, has always liked a QB from Buffalo. ;)

LASunsett said...

//And, who amongst us didn't hear Obama infer that "Raising taxes on corporations will keep jobs here!"? WHAT?//

Z, it is a sad statement, but they really believe this. They really think they have the answers and that government is the one to create solutions like this.

Many will have to see for themselves, when jobs become scarce, inflation/interest rates rise, and crime skyrockets to new heights. I have said it before and I will say it again, if this generation elects Obama, they deserve their own Jimmy Carter.

LASunsett said...

//So whether he's a moderate liberal, New Party member, Black Liberationist, or Social Democrat, Obama clearly believes that income redistribution is the only "fair" way to run America.//

It will run America alright, run it right into the ground. Maybe after this nation tanks, Europe will save us. (Nah, forget I said that. It was a brief involuntary delusion.)

LASunsett said...

//They dont' realize that these companies hire employees.....without businesses employees are squat!//

Very true, Jennifer. One only need to study the events that occurred before Mussolini took control of Italy. Factory workers took control of factories from their owners and ran them all into the ground. This set up the right conditions for fascism to rise.

LASunsett said...

//Here's yet another thought: being rich has nothing to do with how much money you have.//

Very true, sir.

Poor and broke are two entirely different things. Being broke is the absence of money at a given point in time and it is usually temporary. Being poor is indicative of a deeper deficit, one that extends deeper into the spirit and it is a much longer term problem.

L'Amerloque said...

Hi LAS !

///Being broke is the absence of money at a given point in time and it is usually temporary. Being poor is indicative of a deeper deficit, one that extends deeper into the spirit and it is a much longer term problem.///

How so very true.

Too, one is inevitably reminded of that consummate cynic, Oscar Wilde, in his 'Picture of Dorian Gray':

/// Nowadays people know the price of everything and the value of nothing. ///

(grin)

Best,
L’Amerloque

LASunsett said...

//Nowadays people know the price of everything and the value of nothing. //

Excellent statement. Thanks for reminding us of that line, Amerloque.