Businesses cannot flourish in an unstable economic environment. When taxes, interest rates, and prices of raw materials fluctuate a business owner can't put together an operating budget and a business plan for his coming year. With the coming of the new year the tax rates that were introduced in the Bush administration are due to run out. The wise thing to do, even under Keynesian, theory would be to extend these tax levels for at least five years. Tax levels as they stand are sufficient to run a reasonable government structure. And as the general economy improves, money flowing into the government coffers would increase.
That would be the wise thing to do. Unfortunately, the president, to continue invigorating his tactic of class warfare, insists that he must allow the taxes on those making over $200,000.00 for an individual or $250,000.00 for a couple to increase. This is mere symbolism because it would raise insufficient taxes to make any difference to the enormous outflow of our dollars that Obama has perpetrated on taxpayers.
In many small businesses the profits from the business show up as income to the owner. So by taxing these people more heavily the government is taking the business owners operating capital. The money the an owner might spend on new equipment, additional hiring, or increased inventory will be taken away by the government to spend as they see fit.
That is, certainly, bad enough. But leave it to the Democrats to double down on a bad situation. They have announced that if the Republicans don't agree to let them pillage small business owners, the will let the entire Bush plan expire giving an un-needed tax increase to everyone. That will push the economy right over a cliff. At that point they plan to be all over TV telling long and loud how the Republicans ruined the economy because they wouldn't do what the Democrats told them to do. Which is the Democrat definition of bipartisanship.
It has been widely reported that the economy is stable and starting to make a slow turnaround. Do not believe it. The old saying that "figures don't lie. But liars can figure" applies here. Unemployment is not 8.3 percent. It is actually someplace north of 14 percent. The GNP just hit a thirty year low. I suspect that you may have noticed but I'll tell you anyway. The economy stinks. Pile more taxes on top of today's economic situation and we could be into another depression.
Of course, that is not all. We also have the possibility of the Obamacare tax. This is both insidious and complicated. The cost of health insurance will of necessity go up. The requirements of Obamacare will force this increase. Many employers will cease to provide health insurance because it will be much cheaper to pay the government fine (tax). Families will have to find their own health insurance or they will have to pay a fine (tax). Meanwhile there are thousand of taxes and fees hidden in the 2600 page bill and the thousands of regulations, most of which haven't even been written yet.
This is a mess. This is not hope and change. This is hopeless change. If we as a country do not stop this in November the next two generations will not have the lives that we had. All this to satisfy one mans over sized ego. Stop it now. Preserve America!