Mao Tse Obama has a Program

Beware of Liberals Bearing Tax Credits

Everyone better read this WSJ editorial (WSJ only because it explains it better) about the Obama "Tax Plan." This is in actuality an income redistribution plan that Chairman Mao would have loved. Read it. Read it.
There are several sleights of hand, but the most creative is to redefine the meaning of "tax cut."
First and last take a look at how "tax credit" is used---remember a third of us pay no income tax at all---his solution is to confiscate all the money that the top 5% of us earn in order to send money back to the flake elements.
In their lexicon, a tax cut includes tens of billions of dollars in government handouts that are disguised by the phrase "tax credit." Mr. Obama is proposing to create or expand no fewer than seven such credits for individuals:
After all the "rebate" checks are sent out, stripped from the upper middle class, you have
Here's the political catch. All but the clean car credit would be "refundable," which is Washington-speak for the fact that you can receive these checks even if you have no income-tax liability. In other words, they are an income transfer -- a federal check -- from taxpayers to nontaxpayers. Once upon a time we called this "welfare," or in George McGovern's 1972 campaign a "Demogrant." Mr. Obama's genius is to call it a tax cut.
And it gets worse each year. It puts almost the entire country on the dole so that everyone is dependent upon the government for everything.
The Tax Foundation estimates that under the Obama plan 63 million Americans, or 44% of all tax filers, would have no income tax liability and most of those would get a check from the IRS each year. The Heritage Foundation's Center for Data Analysis estimates that by 2011, under the Obama plan, an additional 10 million filers would pay zero taxes while cashing checks from the IRS.

The total annual expenditures on refundable "tax credits" would rise over the next 10 years by $647 billion to $1.054 trillion, according to the Tax Policy Center. This means that the tax-credit welfare state would soon cost four times actual cash welfare. By redefining such income payments as "tax credits," the Obama campaign also redefines them away as a tax share of GDP. Presto, the federal tax burden looks much smaller than it really is.
It sums up much worse because McCain has remained silent about this new Bolshevism
Some families with an income of $40,000 could lose up to 40 cents in vanishing credits for every additional dollar earned from working overtime or taking a new job. As public policy, this is contradictory. The tax credits are sold in the name of "making work pay," but in practice they can be a disincentive to working harder, especially if you're a lower-income couple getting raises of $1,000 or $2,000 a year. One mystery -- among many -- of the McCain campaign is why it has allowed Mr. Obama's 95% illusion to go unanswered.
When all is said and done McCain has allowed this communist to accomplish what the Soviet failed to do for fifty years. McCain has sold us down the river through his indifference, his refusal to see Obama for what he really is--it's spelled out for us if we care---and a campaign that is clearly the worst any of us have ever seen. Not mentioned: got a college fund for your kids or your retirement? Fugedaboudit, the dividends accumulated in those funds will be taxed. . Patterico does a pretty good take too.

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