The Democrats want to tax the rich. They are going to repeal those tax cuts given to the rich by the Bush administration.
The concept of being rich to the voter is something entirely different than what Congress is talking about, but they’re not about to correct Joe Six-pack's misconception. The average person envisions a rich person as someone with gobs of money that doesn’t have to work. So go ahead and tax the rich bastards. The trouble is, this is not the group Congress wants to pick on.
In order to pay taxes, you have to have earnings or a big healthy retirement plan. You can’t really tax a millionaires savings to death. Three million in the bank might return 30K a year but the taxes are a measly 4K.
The people the Democrats are targeting are the high wage earners and families where both the husband and wife work. Many of these people run businesses that have employees. If their future taxes increase, they will contemplate moving offshore. So we have more taxes and Obamcare for this group of rich people. If you’re an employer, it really puts a crimp in your bottom line. From off shore, the employer gets to keep the $12 profit per shirt and claim a modest one dollar profit as a jobber supplying imported product to the US. Notice how the taxes and labor costs drop out of the equation. I don’t think Congress can assume that rich people are stupid and are going to wait in line, to pay the new taxes.
The Democrats don’t need to tax the rich; the inflationary spending policy of Congress (printing money) does a superb job. Anyone with a savings account has lost 30% of their purchasing power over the last 10 years and we are liable to lose another 30% before the next election. That gentleman in the example above with three million in the bank now has the buying power of 1.5 million and he hasn't lost a dollar, kinda sucks doesn't it?
This snowball started rolling down the hill way back in FDR’s time. Very few people lived to collect Social Security at age 65 back then. Social Security in the beginning was a carrot on a stick. In today’s world, we either need a longer stick or a hell of a lot more carrots.
So rally around the Democrats, they are going to tax the rich and big corporations (who also pay no tax, the consumer pays it, it’s in the price tag). They are going to save Medicare and Medicaid for the elderly and keep those nasty Republicans at bay. “Nobody gets thrown under the bus.” Just love these analogies. Does Congress have a waiting list for people to be thrown under the bus?
We are spending 1.5 trillion more dollars than we take in, in taxes. If we cut out discretionary spending and the military, this budget could work. What’s left, is the money needed to service the national debt, Social Security, Medicare and Medicaid. And look out, here comes Obamacare entitlements.
People are beginning to realize that the budget has grown absurdly large and is very unrealistic. In Congress it is business as usual. By God, we are going to tax the rich and raise 50 billion. Of course we’ll need to raise the national debt limit up another trillion dollars. Do you get the idea that Congress is doing something incredibly stupid? Of course, it appears to be working so why worry.