In 1931, the US economy was on the rebound from hard times–very similar to what we’re in now. In 1932, President Hoover raised taxes on those who made $100,000 or more, which boomeranged any rebound and sunk us into the Great Depression.
Why the history lesson? Because history repeats itself.
Going to the inflation calculator at WestEgg.com:
Hoover’s $100,000 in 1932 = $1,500,000 in 2007.
Obama’s $200,000 in 2007 = $15,200 in 1932.
Barack Obama’s promise to raise taxes on only those earning $200,000 or more is the equivalent of Herbert Hoover raising taxes on people who earned $15,000 in 1932. That is, if you can believe Obama’s slippery numbers.
Democratic VP candidate Senator Joe Biden proclaimed that Obama’s taxable middle class is now at $150,000. But wait–New Mexico Governor and Obama surrogate Bill Richardson went on record saying that Obama’s middle class is actually $120,000. WestEgg calculates $120,000 today to be the same as $9100 in 1932. Did Hoover dare to dip that low to squeeze the middle class? This is a Democratic tax limbo: how low will the middle class go? Do you really want to break your back to find out?
This says nothing of Obama’s proposal to raise taxes on capital gains, meaning any profits that people make from stock market investments. He’s going to raise capital gains from the current 15% to as high as 30%. If you are lucky enough to make $1,000 in the market, your taxes would go from $150 to as high as $300.
Now add “free” health care to the mix. We all know from experience that there are no free lunches (thank you Jim Cannon, WVC)…how exactly is Obama going to finance the free?
History teaches us that when the economy is on shaky ground, the last thing you do is raise taxes on anybody. Barack Obama is trying hard to sell the idea of a tax increase for 5% of Americans alongside of $1 Trillion in new spending. How can he raise taxes on only 5% when the definition of the middle class keeps falling? Look at history, then go ahead and do the math.
If Obama wins on Tuesday, and insists on spreading your family’s wealth via reckless tax increases and a Fantasy Island of a spending package, then you better stock your pantry and buckle up for Barack Obama’s Great Depression of 2009.