Economy Staggers Amid Higher Gas Prices and Obama Tax Proposals
As gas prices soar above $4.00 a gallon in California, the Obama Regime plans to further slow the economy by proposing a revamp of taxes that raises rates for some business by eliminating some of their tax breaks.
The proposal will lower the “effective” tax rate on manufacturers to a top rate of 25%. That’s a decrease from the current 32%. But Obama plans to eliminate many of the huge deductions and subsidies for large oil companies.
The Obama plan also plans to tax overseas earnings of U.S. companies for the first time.
The prospect of higher corporate taxes will take yet another gouge from the pockets of American consumers.
According to Neal Boortz and John Linder’s book the The Fairtax Book, corporations and businesses don’t pay taxes. “When it comes right down to it, no corporation or business really pays taxes. The burden—all of it—falls on us.”
The Obama Regime’s continued call for higher taxes will ultimately prolong the stall economy’s stall. With the prospect of $4.00 per gallon gas prices on the near horizon, the American economy won’t have has little chance of a recovery in 2012. The Obama Regime knows that that it stands to lose billions in tax revenue because of high gas prices.
Americans buy less gas when prices go up and so fewer taxes are collected on gasoline sales.
Americans buy less gas because they make fewer trips. Fewer trips means they are visiting stores less often. And when they get to those stores, they have less money to spend because of higher gas prices. So stores sell less and begin laying off people.
Manufacturers have to reduce production because people are consuming less. They begin to lay people off.
Now even fewer people have the money they need for the basics–and the cost of basics go up and up.
The cost of shipping everything from asparagus and zucchini to diapers and gasoline itself goes up and those prices also get passed onto the consumer.
So where in all of this craziness does it make sense to raise taxes? When an American loses their job, they cut back on their spending.
When the Obama Regime collects fewer tax dollars, they raise taxes.
The answer is not now nor has it ever been to spend more tax dollars. The answer must be fiscal responsibility and that means making serious and painful cuts in government spending.
But that has not been the Obama way. Remember the $2 trillion ObamaCare plan? Everyone gets healthcare which sounds great but at the end of the day, the Obama socialist plan has been to enslave Americans. His policies are designed to make Americans more dependent upon government rather than challenge Americans to improve their economic condition through hard work and real employment.
Under Obama the American Dream is an economic nightmare. The Obama plan is to re-distribute wealth in America by overtaxing everyone and anyone so that he can give away welfare dollars, government pork projects and healthcare.
When Barack Hussein Obama was inaugurated in 2009, the price of a gallon of gas averaged $1.81 a gallon. According to the Christian Science Monitor the national average price for a gallon of gasoline is $3.52 as of today.
When Americans go to the polls in November, it will cost them more to drive there and when they’re standing in the voting booth ready to cast their vote they need to ask themselves, “Am I better off today than I was four years ago?”
The featured image for this article appeared in NewsInSacramento.com
Short URL: http://bignewsnow.com/?p=1008
Posted by Elizabeth Samson
on Feb 22 2012. Filed under Business News, Featured News, US Politics.
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GO Rangers!