Obama's Spreading of the Wealth - A Real World Contagion

Here is a real world example of the effect of the Obama tax plan. One of my business partners has a friend who owns a machine shop in the Joliet area that employs about forty people, when the economy slows he has found it better business to find work for his employees who would otherwise be idled by a slowdown. In other words he would lower, sometimes dramatically his profit on jobs that he bid and he would go after smaller jobs than normal in order to keep his workforce together and active. If the Obama tax plans go through the incentive for this man to continue doing this is greatly diminished, he is after all doing more work, spending more of his own time and taking on more risk with each additional machining job.

If Obama's plans are enacted he would not only pay higher Federal Income taxes but dramatically higher FICA taxes on each extra dollar he earns. He has done the math and as his business is going today he would lay off 25% of his workforce under Obama's more repressive tax program, that is ten people. Those ten people would not be paying taxes locally or federally, they would likely draw unemployment and possibly welfare, they would be spending less in our economy. Further this man's business would not be doing those small lot jobs at discounted prices for other small businesses, further spreading this high-tax-induced contagion to other small businesses and their employees. Barack Obama's plans would spread poverty rather than wealth.

Mission Impossible: Chicago Media To Report on Obama?

Scene: Lower Michigan Avenue outside of the famed Billy Goat Tavern (or the Silly Goat for all of you Brenda Star readers) on a dark, foggy Chicago night, a man clad in a faux Burberry trench coat kicks aside a rat with one jet black Adidas Masterpiece while crushing out a cigarette butt with the other, he reaches behind a dank dumpster to extract a shiny aluminum Zero Halliburton briefcase which he deftly lays on the hood of his primer gray 1986 Chevrolet Caprice. The briefcase is empty save a pristine 1980 Sony CFM-33 Cassette player, the man in the trench coat presses the PLAY button.

Sony CFM-33: Good evening Mr. Media, I hope that this message finds you both sober and well. You and your Media Cohorts in Chicago and elsewhere have dug into the life of an American Citizen from Toledo, Ohio known as Joe the Plumber for the simple reason that he asked a reasonable question of your fellow Chicagoan and hometown favorite Mr. Obama. Mr. Plumber was doing the job that you and your Media cohorts have avoided for at least 22 months. Your mission, should you decide to accept it is as follows:

Do your job. Yes Mr. Media I am not asking much of you and your fellow ink-stained wretches, I am simply asking you to do your job. Should you accept this mission you will travel all of 1 mile 4, 789 feet from the end bar stool at the Billy Goat to the Richard J Daley Memorial Library on the campus of the University of Illinois at Chicago. When you arrive you will investigate and honestly write about Mr. Obama's only executive experience at the Chicago Annenberg Challenge. In the mean time you can have that bubble-headed girl who is your "intern" pull up all of the Annenberg articles that your paper wrote during the Challenge's existence.

Because you have acted as if you have no idea where those records are located, here are your directions: take this street, Lower Michigan Avenue south over the bridge to Lower Wacker Drive and take a right, follow Lower Wacker in the right lane to the end at the I-290 West on-ramp, take that and stay on your right, when you get back over the river stay in the right lane and get off on the I-90/94 Exit and take the I-90/94 East Dan Ryan exit on your left, take the Dan Ryan about a half of a mile and get off at Taylor Street West, take Taylor Street to Morgan Street, take a right and find a place to park. The Richard J Daley Memorial Library will be on your right, you can't miss it.

At less than four miles round trip there will be no mileage allowance.

Good luck Mr. Media. This tape will self-destruct in 12 seconds, ten, nine, eight, seven...

Obama Senior Advisor Does Not Understand Income

This is no surprise but it is further evidence of either the utter dishonesty of the Obama campaign or their utter lack of real world knowledge. Stephanie Cutter, a "Senior Obama Advsor" was just on FOX News trying to explain the Obama campaign's recent idea to attack an American citizen with the temerity to ask Obama a serious question. In her FOX interview Cutter was asked whether each dollar that Joe the Plumber makes over $250,000 would be taxed at a new, higher rate? Cutter's response was (paraphrased) "no, Barack wants to lower taxes for small businesses, and he will pay a lower capital gains rate so his taxes won't go up." Now in all fairness to Ms. Cutter her boss Senator Obama has been saying much the same thing.

There are some big problems with all this, for starters the only "capital gains" that Joe the Plumber would declare would be from the sale of all or part of his business. Furthermore, as I am sure Mr. Obama knows, most small businesses are set up as an "S-Corporation". The business files a return, form 1120S with the profit being declared on the owner's form 1040 (line 17). In addition to being dishonest on the subject it should be noted that during the past decade small businesses that file as S-Corporations have been very important job creators. Obama wants to pluck the geese that have been laying the golden eggs in our society.

Good Lord, Mort Kondracke just said the same thing concerning capital gains, business income is not a capital gain.