Tax Machine Blog™

Obama, and his “Robin Hood” State of the Union Address

This past summer, Mark Morford wrote an article over at SFGATE referring to Barack Obama as the “best worst president ever.”

In the article, he points out some facts of interest:

  1. The Dow Jones was “danc[ing] around record highs…
  2. The income gap between the 1% and everyone else [was] more demeaning than ever… [and]
  3.  banks [hadn’t] fundamentally changed in the slightest…
  4.  corporate profits [were] way up..
  5. And while corporations are raking it in, workers are seeing less and less of their fair share. “

Bottom line, according to Mr. Morford, is that the “rich” are doing better than ever under Obama’s tenure, while the “poor” and “middle class” have very little to show for it.

Meanwhile, we have a president who has previously described himself as a “warrior for the middle class” and – if you believe the media – he’s about to lay out his vision to take this “war” a step further in his State of the Union tonight.

Tonight, our president will propose that the GOP-controlled congress do something most members of that party have consistently pledged to never do – raise taxes on the wealthy and financial firms. Take a look at the preview of his speech:

“Now that we have fought our way through the crisis, how do we make sure that everybody in this country, how do we make sure that they are sharing in this growing economy?” Obama asks.

 

Apparently, we make sure that every gets “their share” is by raising taxes on the famous “1%.” Specifically, our president will propose a rate hike on capital gains taxes for couples making more than $50,000 a year. According to an unnamed senior administration official “99 percent of the impact of the tax increases would fall on the top 1 percent of earners.” Along with a transaction fee on large financial institutions, the plan projects that the tax rate hike will produce additional revenues of $320 Billion over the next ten years – revenue that will be used to provide middle class families with additional tax credits for child care and community college tuition assistance.

 

What do you think about the proposal. Is it ever right to increase taxes on the rich to give additional tax credits to the less fortunate? Share your thoughts in the comments below.