Refresher on Tax cuts

Some taxes in the economy are clearly defined: Income tax, Sales Tax, Capital Gains Tax, etc. Then there are the implicit taxes such as the increases in your utilities and gas due to regulations imposed on companies by the US Gov't.

If debated, Obama would claim he has fulfilled his obligation to middle class Americans in giving them a tax cut citing the $60 average increase per paycheck. This can be likened to receiving anesthetic prior to surgery.

The most important costs to you are Food, Gas, Electricity(utilities), and Healthcare. These are under the threat of major price increases should Cap & Trade and Obamacare go through.

The other issue you face is who will front these costs? No matter how he defines middle class or upper class, everyone one will pay. It is convenient he can provide you no figures on exactly how much. Some of these costs will truly be handled by the upper class.

But just who is that?

This appeared to be the best compilation of Obama defining upper class.




Now let's look at his stance on his policies on CAP & Trade. For those unfamiliar, Cap & Trade is legistlation which will police carbon emissions.



"Electricity prices will necesarily skyrocket." And the cost, "will be passed on to consumers".

Next we have Warren Buffet, a member of Obama's Economic Advisory Staff (Note that he does not answer the original question).




Here, Congressman Dingell clearly acknowledges what the effects of passing Cap & Trade are (noting that Europe has failed in their efforts in doing this). He asks how will we be different. To date, there has been no answer.





And what is the rush to judgment on a bill that will clearly change America as we know it? Congressman Waxman tries to belittle this point in this next clip.




Simple ecomonics dictates that if you increase costs of business, the businesses will move elsewhere. Nowhere has this been proven more true than in Massachusetts. This state is wallowing in its own demise due to the pressures they placed on business turning what once was Technologies Highway into a technology graveyard. CAP & Trade's initial impact will be higher prices for consumers, but that won't last. Competitors abroad will see opportunity and move in unless the companies in the US find a way to keep up. Their only answer is this...




There is one more implicit tax to consider - inflation. Inflation is not 'higher prices', actually that is the effect of inflation. No, inflation is the increase of money. Which is currently what the Treasury is doing by printing dollars. WIthout going into economic theory, the basics are all you need to know. It's supply and demand. Increase the supply and demand goes down, or in this case, the value of the dollar.

So how far will that $60 take you when your food, gas, electricity costs triple or more? And it doesn't stop there. Everyone will need to raise prices to keep their employees alive and able to work in society. So services will go up as well.

Healthcare and Energy are two issues which have been around, festering for almost 100 years. Don't you think Congress owes it to the US Public to clearly define the impacts of these bills and have honest open debate, clearly informing the public of the details prior to signing?