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Wednesday, 22 February 2012
Forget Saving
If President Barack Hussein Obama has his way, investors and those saving or who have already saved for retirement will be decimated. More people will end up unprepared for retirement and looking to the US Government for their retirement subsistence.
Mr. Obama is proposing to raise the dividend tax rate to the higher personal income tax rate of 39.6% that will kick in next year. Add in the planned phase-out of deductions and exemptions, and the rate hits 41%. Then add the 3.8% investment tax surcharge in ObamaCare, and the new dividend tax rate in 2013 would be 44.8%nearly three times today's 15% rate.

Keep in mind that dividends are paid to shareholders only after the corporation pays taxes on its profits. So assuming a maximum 35% corporate tax rate and a 44.8% dividend tax, the total tax on corporate earnings passed through as dividends would be 64.1%.
While these tax increases may include the Warren Buffets and Mitt Romneys, the tax increases will most hurt those who have already retired or are close to retirement and counting on dividend and interest income to support themselves. Buffet and Romney can live without 40% of their income, the average American retiree cannot. With the Mediacare system bankrupt and broke, what will happen to the millions of aging Americans living off their savings and the dividends and interest produced by savings?

Less Americans become self-sufficient as the government encourages spending instead of saving. Even those in the labor force will be encouraged to spend instead of save, making their subsistence dependent only on the next paycheck instead of savings put aside for that rainy day.

If you believe America can afford more on the government dependency trough, you need to review where we are right now.
"One of the most worrying trends in the Index is the coinciding growth in the non-taxpaying public," wrote Heritage authors Bill Beach and Patrick Tyrrell. "The percentage of people who do not pay federal income taxes, and who are not claimed as dependents by someone who does pay them, jumped from 14.8 percent in 1984 to 49.5 percent in 2009."

That means 151.7 million Americans paid nothing in 2009. By comparison, 34.8 million tax filers paid no taxes in 1984.
That's right, half of America is supporting the other half of America. Of course these on the government dole still vote; hence, Mr. Obama's promises to dole out more from the government trough after having hijacked it from those who produce for America. It's more than redistributing the wealth (which is reprehensible in itself); it's creating a welfare socialist state where the government decides who gets what regardless of work and production. As dependents of the government, the government then feels justified in telling its people what they can eat, drink, how many children they can produce and where they can live. In a socialized state, the government must do these things to limit spending. It must decide who is too ill or expensive to treat; it will dictate life from cradle to grave based on limiting costs.

And just remember, the asylum will be run by the idiots that preach (they can't really believe this falsehood)unemployment is GOOD for the economy; Those who encourage spending over saving and don't encourage saving and conservation.

This is not America. It is not our founding principles and it certainly does not build a strong and great nation.

Interested in seeing what happens when a government increases taxes on the "wealthy"? Let's look at the UK.
The amount of income tax paid fell sharply last month in the first formal indication that the new 50p higher rate is not raising the expected amount of revenue.
Posted By P.Brown at 7:32 PM in Category:Politics
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