WSJ: Obama’s 95% Illusion

by Francisco Gonzalez ~ October 13, 2008

The Wall Street Journal just wrote an excellent piece exposing Obama’s lies about how he is going to give the bottom 95% of Americans a “tax cut.” It’s no tax cut.

First, these are a series of “tax credits” and NOT “tax cuts.” There is a huge difference.

Second it’s going to be an income transfer — a federal check — from taxpayers to nontaxpayers.  (In other words, redistribution of wealth - in other words, socialism). As the WSJ points out, “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.”

The Journal article outlines many political “catches” to this so-called “tax cut,” but none is more striking than the fact that as incomes rise, they impose a huge “marginal” tax rate increase on low-income workers. A fundamental principle of basic economics is to create incentives. This not only reduces incentives, but gives low-income workers no incentive to move up in income. Just like good-ol’ fashioned welfare, it traps low-income workers in a cycle of dependency on government.

And, those are more facts about what the master of illusion has planned for the American economy.