(snip)"Tax Hikes to Help Us Grow?

The Democratic candidates agree that the Bush tax cuts needs to be repealed. So, in 2010 we face the largest tax increase in history if that is to be the case. Want to double the dividend and capital gain taxes? Vote for Hillary or Obama. Watch your stocks tank.

They want to "tax the rich" and make more for middle class tax cuts. Sounds nice, but let's look at the facts. The bottom half of taxpayers only pay 3% of the total income taxes collected, which is 1% less than before the Bush tax cuts. 44% of the US population, or 122 million people, pays no income tax at all.

The richest 1% of the country pay 39% of all taxes ($365,000 income and up), which is 3% more than before the Bush tax cuts, under the Clinton tax policy. The top 5% ($145,000) pay 60% of all taxes (up 5% from 1999); and the top 25%, with income over $62,000, pays paid 86% of all taxes. It seems to me that the rich are paying their fair share. Every category is paying more now than under Clinton, except the bottom 75%.

Under any Democratic plan, they would want more than 50% of US citizens to pay no income taxes. If you pay no taxes, why do you care if we run deficits? Polls clearly show that those who pay no taxes are overwhelmingly against tax cuts, as they think it will cut their entitlements and benefits. The plan is clearly to build a constituency of voters who will vote Democrat to increase taxes on someone else and spend the money on programs for them.

Any increase in taxes at the levels proposed by Democrats is by definition anti-growth. Government spending is not as efficient or productive as private spending. It will also be a large drag on the stock market. 2010 is now less than two years away. Congress is going to have to deal with tax policy in 2009 or risk a major economic setback. See how safe your job or business will be in a second recession within a few years, like we saw in 1980-82.

A repeal of the Bush tax cuts would raise taxes on the bottom 75% of the country, and cut taxes for the rich, as a percentage of total taxes paid.

I can go on, but I have probably offended enough readers for one weekend."(snip)

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