Monday, October 6, 2008

Obama cannot deliver tax cuts to middle class (Sums do not add up)

Already Barack Obama has made promises totalling 1,000 billion dollars. In addition the bailout just agreed will cost an extra 700 billion dollars. Now he promises substantial tax cuts for the middle class. Quite simply these cannot be funded with an overhang of 1,700 billion dollars. This is political smoke and mirrors-loony bin economics. Such an economic policy will produce economic Armageddon.

Tax cuts can only be introduced by a freeze on government spending. Such a freeze would make resources available to fund such tax cuts. This is the McCain approach. McCain has advocated a freeze (excluding military spending). He has promised a war on waste and pork barrel spending. He has a strong track record in opposing pork barrel spending. Obama on the contrary has been a strong proponent of pork barrel spending and has voted for 94 tax increases.

When challenged on a public expenditure freeze-in the first debate-Obama ran for cover and fudged the issue.
Obama’s plans to double the capital gains tax is a further ingredient in the current instability. The likelihood of an Obama victory could trigger a further massive sell off on the stock market as investors seek to avoid higher capital gains tax rates.


5 comments:

rainywalker said...

We have had many tax cuts without a freeze on spending. Both McCain and Obama voted for the 700 billion bailout which is really over 800 billion with the pork. Which by the way is secret from the American people. But McCain is the one who says he never signs a bill with pork. Well he just did with the extra 100 billion, so where is the truth. The plan the Senate and Congress put together is not to help the American people it is to pay off their friends that made those inside the beltway rich. The plan may not even work according to many experts. Now it is starting to spread to the rest of the world. I really don't see where you are coming up with the trillion dollars? Even with an increase on business, they will be paying less than most of the world when you look at the fine print. Give me something concrete here to understand besides attack. I'm even sick of that and many of us here in Colorado are not even watching the lap dog media. I get my information from both the left and right on the net.

John Barry said...

For another view see:
Washington Post

John Barry said...

The 1000 billion dollars averages out at 250 billion annually. The following has further interesting information:
Tony PHYRILLAS admittedly from a conservative perspective. It refers to the National Taxpayers Union which is non partisan.

rainywalker said...

If you believe anything the Washington Post says I have a bridge I want to sell you. Talking points during any election will mirror the conservatives bias. Thanks but I'm not convinced.

John Barry said...

The National Taxpayers Union is non partisan. It claims that Obama's promises amount to 293 billion dollars annually. A President Obama and a Democratic controlled congress will not tackle overspending. Obama cannot cut taxes. His policies do not add up.