Tuesday, March 03, 2009

Surprise! $250K earners will soon try to earn $1 less

Check out the results of the ABC News poll today on its Blog section.

http://abcnews.go.com/Business/popup?id=6977870

Why is this a surprise? Heck, it's human nature and common sense. I'm not a millionaire, but I know this makes sense.

Evidently, The Prez and the Dems have chosen to disregard what every businessperson knows, the old saw, “make up on volume what you don’t on margin.” Of course, The Prez went to LAW school at Harvard, not the Business school. And because The Prez has been out organizin' communities, and really has never worked in "business" -- or started one -- at a management level, he can’t really be blamed for ignoring what every small businessperson has experienced this truism firsthand.

Given the chance and the opportunity, most everyone else would do this too. Why WOULD you want to intentionally inflict more tax pain on yourself if you are anywhere near that $250K threshold? As people leave that strata (there's going to be a LOT more $249,9990-ers pretty soon), the Government will HAVE to eventually go after them, first using the IRS, then as the Taxman in that $200-249K segment.

Taxing this group of people – and driving them to do the opposite (earn LESS) of what they would normally do (earn MORE and therefore pay MORE taxes) – makes about as much sense as taxing cigarette smokers to cover more healthcare funding needs while you're trying every trick in the book to get them to quit (including paying for smoking cessation programs and PSAs. Eventually, that pool will dry up (either from kicking the habit or kicking the bucket) and you’ll be on the lookout for a new funding source to replace them.

That's why it's a lie from the start that only "the rich" will be taxed more. And the President's party knows that; this happens all the time.

This is NOT retreading of some other Conservative Blogger, The WSJ or Rush; I am old enough to remember this for myself. I was there, and I know this happened.

While a candidate the 1990s, Mr. Clinton also promised "the middle class" (although the media doesn't remember this). The week of his inauguration as president, Bubba declared that things were worse than he was told/realized and that for the good of the country, the tax break promise had to wait.

So, during that much-touted, prosperous, booming economy of the 90s that Bubba supposedly gave us (although no one I ask can ever point to what precise program or policy he proposed to produce such a boom), the middle class didn't taste of a tax cut. He DID however pass the largest (at that time) tax increase in history, then cut back on Military spending (thank you Mr. Bush 1st); Welfare Reform passed and HilaryCare didn't (thus saving money all around) and thank you Mr. Gingrich, and Bubba got his budget surplus --- and a hummer. But I digress.....

25-Point Bonus Question: Do you know which party wrote appropriation and
spending legislation for the majority of the 1990s? It was under
Republican-controlled Congress, (especially the House's John Kasich, R-Ohio via
McKees Rocks Pa.), that the nation’s Welfare system was overhauled and a
balanced budget plan was enacted. Funny, you hear about this all
the time but never see videotape of the passage in Congress. Imagine
that!

Do you really think in times like these, the middle class is going to fare any better? If you believe that, I've got some sub-prime mortgages I'd like to sell you.

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