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  • Obama’s Tax Claims Contradict Reality

    President Obama marked Tax Day with a speech touting his tax policies. He made several claims about how his policies will improve the economy, most of which don’t hold up under close scrutiny.

    Here are a few of the more egregious examples:

    • President Obama claimed the tax cuts in the mis-labeled “stimulus” bill are the most progressive in history. This is true because the so-called stimulus created the Making Work Pay Credit and expanded the Child Tax Credit and the Earned Income Tax Credit. All these credits are refundable, so they send checks to tax filers who pay no income tax. This is income redistribution that does nothing to stimulate the economy.
    • President Obama also claimed that his tax policies cut taxes for the most number of workers ever. This is flat out false. The credits in the so-called stimulus phase out for anyone making over $95,000 ($190,000 for married filers), so a large number of workers are excluded from claiming any portion of them. The 2003 tax cuts applied to all workers because it reduced all income tax rates. It also did not limit the tax cut to earned income, as the stimulus tax cut did, and exclude income from social security and pensions. By all measures the 2003 tax rate reductions applied to more workers and taxpayers than the stimulus tax cuts.
    • President Obama stated that the tax cuts will boost demand and stimulate economic growth. The tax cuts will not stimulate economic growth because they are economically identical to spending. And spending does not stimulate economic growth because the money must first be borrowed or taxed out of the economy before it can be spent by the government. No new demand is created. Income is just shifted from one sector of the economy to another.
    • Lastly, President Obama said the tax cuts will create or save 500,000 jobs. The latest jobs figures contradict this claim. The economy shed 663,000 jobs in March. The analysis used to concoct the number of jobs created by the so-called stimulus has already been shown to be fatally flawed.

    The tax cuts in the so-called stimulus will not stimulate the economy. President Obama chose to pursue tax policies that redistribute income to low-income tax filers instead of cutting tax rates to encourage economic growth. By doing so, he missed an opportunity to actually create jobs and put more money in the pockets of the people he wants to help.

    Posted in Ongoing Priorities [slideshow_deploy]

    15 Responses to Obama’s Tax Claims Contradict Reality

    1. MAS1916 - Denver, CO says:

      These are exactly the reasons the Tea Parties were so successful yesterday. Ignoring facts on the ground is a good way to stir up opposition.

      The real lie though, is that Obama will indeed be taxing the lower and middle classes through a HUGE tax increase next year called inflation. Inflation is a method of taxation that is used when government cannot borrow the necessary funds to pay for its programs. Government simply increases the money supply and executes payment with dollars of lesser value. LBJ invented this methodology and used it to pay for the Vietnam War and for the first round of Great Society programs.

      There will indeed be a tax increase next year. And all the 'amateur' protesters from yesterday will certainly notice.

      http://firstconservative.com/blog

    2. Lindy Abbott says:

      It seems we live in a said day that the general public is so ignorant to facts and information that they are willing to believe whatever they hear. It may be due to the age of the internet with bloggers that post just about anything and everyone passes on emails without verifying its truth. If it is written most people believe it must be true, and with all amazement if it comes out of Obama's mouth it must be gospel truth.

      I am just a homeschool mom but when I heard Obama speak on April 15, I caught the same lies that you did in this article. I couldn't believe he just states lies as though it is factual information and most people and media repeat it and when it gets repeated enough it is believed.

      The same thing is happening with outlandish lies of some Congressmen that stand up and testify to facts that are bogus. I heard Barney Frank speak on TV last week and he spoke round and round in so many circles he didn't state anything that could even be understood by a thinking mind. I looked at my husband and said, "What?" He didn't state one flowing intelligent or logically understandable sentence. He rambled a bunch of words stating his "case" that didn't say anything but made sounds coming out of his mouth. And unfortunately this is not the first or only politician that seems to be speaking to the public in illogical verbal circles of chatter.

      What our American Citizen needs is a strong less in truth and how to determine logical sequences. We need to learn again how to think for ourselves and not just swallow down what is heard as fact.

    3. Robert French, Parad says:

      I like your writings and believe you me it is the truth. We are living in a very bad time in as much as the democrats got out and registered young people to vote and it happens that they are not educated enough to vote. However we have to live with it for four years, but with talking to both democrats and republicans alike most are begining to see the light and this will be the last of the high voting for this kind of government. Not the young as yet, but those whom were dupped into voting for this administration is not going to vote for it again.

      Thanks for your information.

      Respectfully,

      Robert French

    4. Pingback: I’m Drawing a Line in the Sand « The KBook Report

    5. B. Johnson, USA says:

      People forget that the Founders made the 10th A. to reserve the lion's share of government power to serve the people to the states, not the Oval Office and Congress. In fact, Chief Justice Marshall had established the following case precedent which appropriately limits the power of the feds to lay taxes.

      "Congress is not empowered to tax for those purposes which are within the exclusive province of the States." –Chief Justice Marshall, GIBBONS V. OGDEN (1824) http://supreme.justia.com/us/22/1/case.html

      The bottom line is that the people need to wise up to the ongoing, illegal usurpation of state powers by the feds and do the following. The people need to work with their state lawmakers to repeal the 16th A., the amendment that gives the feds the power to tax citizens directly. The problem with that amendment is that it makes it too easy for the corrupt federal government to lay constitutionally unauthorized taxes.

    6. Spiritof76, New Hamp says:

      People need to understand that the oppressive governmental power is being wielded by Obama and his followers in the US Congress. We can argue endlessly about the unconstitutional nature of the federal government and believe me, it is totally out of whack. When push comes to shove what are the freedom-loving and Constitution-adhering citizens to do to throw off the yokes of oppression? We have to try what Martin Luther King did- non-violent civil disobedience. We must support people like governor Rick Perry of Texas to reject the federal authority beyond the Constitutional limitation. That must be the next step of all those that started the movement with the tea party.

    7. Pingback: The Heritage Foundation Discredits Obama's Tax Claims - Political Forum

    8. Nick Baker, Oklahoma says:

      Not to detract from the message of this blog, but we are all so riled up about federal taxes that state governments are cleaning our pockets while they have us focused on the feds.

      The scheme of choice seems to be all the various tax credits program used to stimulate economic growth. Great ideas, but the devil is in the details. Tax credits by nature are the tool of choice for scams, for several reasons. We were originally all sold on the idea that tax credits was a way to reward success, i.e., those achieving profitability. It didn’t take long before language was quietly being slipped into many state tax credit programs that would allow selling the tax credits for the cash as soon as the credits were received.

      Since tax credits divert tax revenue before it reaches state books many are using tax credits as a way to fund or simply hand cash directly to special interest off the books. This is being used to spend outside the balanced budget acts of some states

      The other scheme was the infamous CAPCO scheme that ripped several states off. I believe Wisconsin was one of those states? http://prowlingowl.com/Scams/CAPCO/CAPCO.cfm

      Now there is a more insidious scheme that has cropped up in Oklahoma and new information suggests possibly Hawaii, where language is creeping into tax credit programs requiring the identities and uses of tax credits to be kept secret. Here in Oklahoma we are losing $100s million per year in tax credits given to unidentified people for unknown reasons. Details http://prowlingowl.com/

    9. E Kend says:

      To my absolute disgust, and our son, the Marine, has told me to settle down about Napalatanio's horrendous report about right-wing, so, what is left-wing? or, what is center-wing?, our city here in NC annexed us from the county into the city… again, against our will, we fought it for about, five years, before finally the city just took our neighborhood in and now, we pay double house-property taxes, one for the city, and one for the county… and that doesn't include our car taxes, our water bill that goes up with frequent regularity now (in spite of the water drought we had three years ago which 'justified' our raise in water rates… our water bill has increased every six months since then), our sales tax, tobacco tax (while not a smoker, we live in N.C.)… the list goes on. We did not want this president, and while respecting the Office, we feel he is blatantly ignoring our requests to LOWER OUR TAXATION WITHOUT REPRESENTATION (sorry, don't mean to yell, but you do get frustrated at being ignored).

    10. Jerome Zacny says:

      Mr. Obama cleverly, yet deceitfully, declared that his tax plan would result in tax cuts for 95% of Americans. First of all, he meant Federal income taxes. Second, he meant workers, not taxpayers. There are a large number of workers who pay no income taxes due to the relatively low wages they earn. For these folks, he's talking about a welfare check. Third, the maximum tax cut available is $400.00 a year or $8.00 a week. Wow! Now there's a stimulous. That ought to ease everyone's retirement worries and end the concern over paying their kids tuition. But before getting too excited over this tax windfall, remember that the tax cuts don't apply to you if you make more than $95,000 a year.

      Here we begin to learn what Mr. Obama meant about spreading the wealth. We can see what he meant by taxing the "rich". His tax policy defines the rich as those who earn more than $95,000 per year ($190,000 per family). It's nice to know that if you make a hundred thousand dollars a year, you can count yourself among the nations multi-millionaires and billionaires (Oprah, George Soros, Bill Gates, etc.) even if Robin Leach doesn't ask you for an interview.

      Now, for the lucky ones who do qualify for the $8.00 weekly tax windfall, there will be Mr. Obama's new energy tax to contend with, due to his Cap In Trade legislation. I somehow think that tax may exceed eight bucks a week.

      Of course if we get real lucky, and lose our jobs, we may get that tax cut on the income we no longer make. That will help with the new energy taxes, the new taxes that will be levied to support those very tax cuts themselves, the new taxes to support his national healthcare reform effort, the new taxes needed to support his education reform efforts, the new taxes that will be needed to support the bonus payments to Fannie Mae and Freddie Mac executives for their stellar accomplishments at those institutions and last but not least, the additional taxes needed to fund the 8,500 earmarks in the stimulous package.

      To borrow a phrase from Mr. Obama, "let me clear about this". These comments are not complaints, but merely observations. After all, we don't want to be named as potential right-wing extremeists by Ms. Napolitano, in her department's reports to law enforcement officials.

    11. Jim@Redding,CA says:

      What's needed is for us to see a bit beyond what is immediately in front of us.

      When you put ALL THE FACTS TOGETHER, you

      get a frightening glimpse at what is REALLY COMING. None of this is about tax

      issues or health care or environmental

      pollution or better roads or anything else

      this administration is touting to America!

      Look no further than their reaction to the

      tea party protests which they dismiss with

      utter contempt and derision, calling it

      some sort of "orchestrated conspiracy".

      Place that in concert with the WELL-TIMED

      "leak" of the DHS report the day prior to

      the nationwide portests, and you might get

      around to wondering just who is conspiring

      against who…

      There can be little doubt that this is a

      concerted effort to place average American

      folks under a HEAVY YOLK OF GOVERNMENT

      CONTROL. They FEAR any consolidated move-

      ment such as the one shown on 4/15/09 by

      ordinary citizens such as you and I… We

      need to continue down this path if we value our constitutional rights and free-

      doms. These types of protests are, along

      with our votes, what separate us from all

      other countries, but, if we don't exercise

      them, then we will LOSE THEM to morons

      such as those currently in our government

      at EVERY LEVEL – BOTH REPUBLICAN AND DEMO-

      CRAT ALIKE. We also have the right to the

      impeachment process when we discover we've

      been deceived by liars who defile our con-

      stitution and pass UNLAWFUL measures.

      So, what can we do? 1)Impeach 'em all.

      2)Vote them out in 2010 & 2012. 3)Keep on

      protesting!

    12. Vick , Gulfport says:

      THE OLD SHELL GAME! Even the master P.T. Barnum Obama, does not know if or which of the 3 or 4 shells may have an answer under it, he keeps guessing and picking empty shells! While the focus is on him the rest of the governing body is busy passing crushing legislation on the working in the U.S.A. We have let a circus be elected to run the country ! Vick

    13. tucanofulano, Calif. says:

      Did he open his mouth? Were the words really smooth ? Was he lying, again? Still ?

    14. Barb -mn says:

      Great Posts! Mr. President contradicts all of reality.

      It's funny, the president just spoke of how "we need to be honest with ourselves." Huh? We are honest with ourselves.

      YOU, MR. PRESIDENT, NEED TO BE HONEST WITH US!

      Take on your own accountabilities and quit using "we!"

    15. staci - oregon says:

      I read some honest reporting outside of the MSM and get a fuller picture of this administration. Too many people rely on the MSM to get the truth and then believe it to be gospel – just like BHO. Personally, I am using my $8 to send my daughter to college – it has made all the difference in the world!

      I have friends who "just love Obama" but they are starting to send me email petitions (?!!!) to stop his insane programs. We have to stop this or that they claim — I tell them to suck it up and pay my part too since they wanted him so badly.

      The Supreme Court needs to take back its powers the the Congress and Executive Office have claimed, only then will we be inline with the constitution. We no longer have checks and balances in the government only quid pro quo.

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