Obama Mispeaks About Tax Cuts


Political Point

Barack Obama ‘s words were just carried on national TV.

I am not about to add seven hundred billion dollars to our deficit by allowing a permanent extension of the tax cuts for the wealthiest of American…Barack Obama

Extending the Bush tax cuts for all Americans is not adding even one cent to our deficit. You do not create deficits by allowing Americans to keep their own money. Deficits are added by overspending on the part of the federal government.

Deficit spending is spending money that one doesn’t have. When a person or government does this,  deficits are created. Mr. Obama’s rhetoric may confuse a lot of people, but please do not be confused. Leaving tax cuts in place is NOT the same thing as overspending and creating deficits.

What Obama is really saying is that he planned for the wealthiest of Americans to be taxed heavily in order to pay off the debt that he, Congress, and those coming before him spent. He forgot to take into account simple economic principles. Wealthy Americans also keep the economy going by spending and investing. When the economy begins to collapse the wealth of all Americans begins to shrink. There is less money circulating and being spent. Deficit spending stinks whether it is a small budget in a family situation or on a tremendous national scale.

America’s debt is already so out of control that it cannot be paid off without tremendous cuts being made by Congress. Cutting taxes will help the economy. Cutting spending will help pay off the deficit. That is how it works Mr. President.

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About jlue

I am a grandmother of seven and I like to garden, read, study the Bible, and spend time with family. I am not very politically active, but very interested in who is elected to lead our country.
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2 Responses to Obama Mispeaks About Tax Cuts

  1. datGurl! says:

    Actually these tax credits were bs from the start, put in place FOR the rich BY the rich.

    The Rethuglicans held the Unemployed Americans hostage while they sat up there on their collective asses and squeezed for this credit to be extended. And they were prepared to let 2 million+ people die on the vine till they got it. Now tell me how ‘in the interest of the American people” is that?

    Cutting taxes for the wealthy will help the economy? How so, when these fat cats dont put it back into the economy, instead they pile it up in bank accounts and stock purchases and buy more private planes and vacation homes…

    Again how does that benefit the little people?

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    • jlue says:

      This post is referring to the Bush tax cuts, not tax credits. According to Princeton Law school a tax credit is a direct reduction in tax liability (not dependent on the taxpayer’s tax bracket). A tax cut is a reduction in the amount of taxes owed based on the taxpayers tax bracket. A tax credit is a one time reduction while a tax cut may be for an extended or indefinite period.

      The Bush tax cuts were across the board tax cuts for American people. Everyone got a tax cut regardless of income. Even so, Bush apparently was able to close loopholes and get tax dollars from the rich according to the Wall Street Journal, December 17, 2007 edition:

      Every Democrat running for President wants to raise taxes on “the rich,” but they will have to do something miraculous to outtax President Bush. Based on the latest available tax data, no Administration in modern history has done more to pry tax revenue from the wealthy.

      Last week the Congressional Budget Office joined the IRS in releasing tax numbers for 2005, and part of the news is that the richest 1% paid about 39% of all income taxes that year. The richest 5% paid a tad less than 60%, and the richest 10% paid 70%.

      How Democrats are able to translate that into being put in place by the rich for the rich is beyond me. Only those interested in class warfare would even try.

      As for who the rich actually are? Try Bill Clinton and Barack Obama for two. Bill Clinton has a greater net worth than George Bush. So what can you say? Most politicians are rich?

      Now, as to Republicans sitting on their wealth and not letting unemployment benefits pass, which party still has a majority in both houses and controls the executive branch. For now, it is the Democrats. Those “Rethuglicans” you are referring to do not take office until January. Democrats have a way of spinning stories and making people believe what they want you to believe. Think about it.

      Don’t get me wrong. Republicans are politicians, too, and should be watched carefully, but Democrats, don’t get me started.

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