Obama claims that he plans to pay for his spending increases by taxing corporations and the rich, while cutting taxes to the middle class. What he does not tell you is that his tax plans will essentially raise taxes on the poorest Americans. He also does not tell you that his taxes on the rich will not come even close to paying for more tax cuts for the middle class. He says that he will pay for his programs by closing corporate tax loopholes. He does not say which loop holes he will close. Many tax loopholes were created to encourage large corporations to help the poor. Closing these loopholes will hurt many of the poorest of Americans.
There are two other major ways that Obama plans on taxing the poor. One is by raising taxes on corporations and second is by making businesses pay for insurance for people who do not work for their companies. Both of these programs will significantly impact the poor and especially the poorest of all Americans.
Obama like many Democrats, is relying on the general lack of understanding of how taxes work. They want you to think that they are taxing someone else. There is only one group of Americans that pay taxes, that is the individual tax payer. Yes, you can tax companies and corporations but they are not the ones who pay the taxes. The taxes are paid by the people who buy their products or use their services. If you raise taxes on businesses they have no choice but to add the cost into the prices of their products or services. If they do not they go out of business. Below is an example of how taxing corporations affects prices. For the example I will use food because everyone including the poorest of the poor has to buy food.
The example is a can of pears. Since almost all farmers have incorporated to be able to stay in business, they will have to raise their prices. They send the pears to a packing house that is incorporated so they have to raise their price. A trucking company takes the pears to manufacturer to can the pears, they have to raise their price to pay the corporate taxes. The pears are sent to a national distributor, who has mark up their price. The distributor sends the canned pears to the local grocery store, which is also incorporated, so they have to raise their prices as well. This means that at least 5 different corporations have had to raise their prices just so you can buy a can of pears.
It works this way for every product manufactured in America. It does not matter if it is food, cars, electronics cosmetics pharmaceuticals or anything else. If you raise taxes on corporations the consumer has to pay more for every product they buy.
The second way Obama plans on taxing the poor is in his health care plan. His plan calls for all companies (incorporated or not) to pay for health care not only for their employees but they will also have to pay into a pool for people who do not work for their companies. When you make companies pay for insurance for people who are not employed by the company then you raise their costs. They have no choice but to raise their prices to be able to make ends meet. Who ends up paying or the insurance for 45 million Americans? You do! Under Obama’s plan, everyone will have to pay more, even the people who cannot now afford to feed and clothe their families.
To sum up there are three ways Obama’s plan will affect the poor.
1. Closing corporate loopholes designed to help the poor.
2. Forcing the poor to pay for the many levels of price increases due to corporate taxes.
3. Forcing all business to pay into a pool to cover those who do not have insurance will raise prices on the products that the poor purchase.
Author : Rusty Ford
http://www.isnare.com/?aid=300484&ca=Society
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