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Originally Posted by l2ridehd
Obama promised no middle class tax increase. Economics 101 or not he made that campaign promise. I agree it was naive. However it is something again when you make the promise, then go and SPEND, SPEND, SPEND and then claim you need a tax increase to pay for all your spending. And it will not stop. Even his own COB is telling everyone that the current health care bill will add another 1 trillion to the deficit. And if we can't borrow it, then you have to tax for it. Just keep supporting all these programs that increase spending. You will see tax hikes that you can begin to believe. To meet current spending alone the minimum tax rate at $40,000 income will have to rise to 63%. And to 90% plus at the highest incomes. So guess what? Why work? And the problem gets worse when high income people leave, take business elsewhere, or just shut down their business. And there are many examples of the fact it does happen.
A tax increase during a recession is the worst possible answer. As I have said before, get ready for 15% to 20% interest rates, 20% unemployment, and 25% to 50% inflation. Go back to Carter who did the same things except Obama is doing it many times worse.
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The good news is: no matter what legislation is passed that can cause more spending , it will take several months to set the agencies in place, write the regulations and a little longer before
real spending happens. Even HR 3200 has 1-year timetables before many of the regulations are to be in place, and that rarely happens according to Congressional timetables. SO, there is ample time to put a new Congress in place to reverse whatever other Santa Claus legislation comes from the sitting Congress.
The bad news is: It indeed costs money to shut down operations, so the taxpayer is still stuck with paying bills that should never have happened. BUT at least much of the fiscal bleeding can be clotted before the patient is terminal, IF we do change out the 2-year spendthrifts in office in 2010.