Recently, Mr. Obama finally took a stand. $210 million for new jobs in the construction and environmental sectors. Sounds like a good idea right?? Think again. Notice where Mr. Obama is planning on getting the money from.
- Ending the Iraq War
- Ending Tax Breaks for Corporations
- raising taxes on high income earners
- taxing carbon pollution.
Okay the first one, I have no complaints. The Iraq war is best left for another post. I am going to focus on the economics of Obama's plan. Now don't get me wrong I am all for building new bridges, and I think his idea is laudable. However, look where the last three sources of income are coming from.
Yes, that is right; the entities that already employ the most workers in this country as is. As I have stated in a previous blog, we need to reduce the taxes on corporations so they can compete on the global market. Mr. Obama is adopting the antithesis of sound policy in his proposal.
Taxing Carbon would also endanger certain industries in this country including the already devestated auto-industry. Furthmore, taxing emissions from powerplants would ultimatley serve to squeeze low income families that can hardly afford power as is. Don't think the power industry would not just pass the tax onto the consumer.
Finally, the tax on high income earners is more regressive than anything. This tax would curtail spending from a group that actually has the money to spend. If anything we want to encourage consumption, which would ultimatley increase production, and thereby jobs.
Mr. Obama you have a good idea, but while creating jobs in one industry you would be destorying the hard workers in other industries. The costs of goods would increase as companies pass off the new taxes to consumer, and the poor people we should be helping will ultimately feel the squeeze.
Perhaps Mr. Obama is trying to relive the George H. Bush speech with a new twist.
"My fellow Americans, read my lips, lots of new taxes."
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