Tax Cut Promises

Watching Obama's State of the Union, I can't help but comment on his tax cuts and incentives "promises" and how ridiculous this idea is. The government will run deficit spending to $1.35 trillion this fiscal year, with no sign of slowing. I realize the government is spending to stimulate the economy. It is necessary. That deficit number does not scare me because our GDP is still much higher. However, as tax revenue is basically a game of balance, my question to President Obama and his Administration is this: How are you going to make up for the lost revenue from both small and large businesses tax cuts? Because the middle and working class can't afford the squeeze. And the people who fill yours and other Democrats' re-election coffers aren't going to give you money after you raise their taxes. And we all know the working poor and poor don't have any money. That's why they're poor. So, where is it going to come from? Better auditing from the IRS? More deficit-spending? Relying on repealing the Bush Tax Cuts? Not enough.

When Reagan was in office, the income tax on the upper most bracket of earners was at 70%. Today, it is at 35% (cut in half). Which means, to make up for that difference, someone else has to pay the difference. On average, those in that bracket only pay 27-28%. For a frame of reference, you most likely pay a similar rate. So, Dude-Man Magillicutty who makes a few fresh millions each year and can afford a savvy tax accountant who finds loopholes and creates tax-dodging mechanisms pays the same rate as you do. Kind of doesn't seem fair to me.

Tax policy over the last 30 years in this country has been written by people who don't know anything about tax policy. And thus, holes have been bored into a system allowing very creative people to develop tax shelters and schemes to help their clients avoid paying most, if not all of their income taxes.

So please Obama-man, don't try to sell me snake-oil. I'm trying to become a snake-oil salesman myself.