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  • Morning Bell: The Obama Tax Hikes, Another Step Toward a European Welfare State

    Last night, the Senate voted 61-39 in favor of a $26 billion bailout for states and government unions financed in part by an $11 billion tax hike that will kill American jobs at U.S. companies that compete overseas. Worse, before that final vote was taken, the Senate also defeated two amendments by Sen. Jim DeMint (R-SC), both by 58-42 votes, that would have prevented the largest tax hike in American history. And earlier this month, Vice President Joe Biden told ABC News that the only thing wrong with President Barack Obama’s first $862 billion economic stimulus was that it didn’t borrow and spend enough.

    The message to the U.S. economy’s job creators from this Administration and Congress is clear: You can expect higher spending, higher taxes and higher deficits for years to come. The verdict on this approach is in. Today the Labor Department’s Bureau of Labor and Statistics released its monthly jobs report showing the economy shed 131,000 jobs in July as 143,000 temporary census workers lost their government jobs. With the private sector only managing to add 71,000 jobs and averaging only 51,000 jobs over the past three months, the private economy appears stuck in first gear. Despite the job losses, the nation’s unemployment rate didn’t budge from 9.5% because another 181,000 discouraged workers left the workforce. All told the U.S. economy has now lost 2.4 million jobs since President Barack Obama signed his stimulus bill, and his administration is 7.6 million jobs short of what he promised the American economy would support by 2010.

    Faced with this failure, the Obama administration wants to double down on its tax and spend policies by hiking taxes on America’s job creators. Research on the last seven recessions shows that small businesses generate about two out of every three new jobs during recoveries. But the $3.2 trillion Obama Tax Hike in January will hit these businesses the hardest. As Heritage Foundation analyst Curtis Dubay has detailed, while only eight percent of small businesses pay the highest two tax rates, those businesses earn 72 percent of all small business income and pay 82 percent of all income taxes paid by small businesses. According to a study by the American Family Business Foundation, just stopping President Obama’s Death Tax hike alone would create 1.5 million jobs.

    But lower taxes and a more dynamic private sector is not the direction that President Obama wants to take the country. Obama’s economic direction is obviously not popular among conservatives, and is now becoming less and less popular among independents and liberals. As Slate columnist David Weigel told National Review‘s Dan Foster this week: “It is like the biggest failing of Obama, and I keep saying this, that he just can’t be honest about the fact that he wants America to be more like Europe. Obviously he does.” We couldn’t agree more. For two generations after post-war reconstruction, Europe and America have pursued different economic models, and accordingly, moved in different economic directions. The American model was low tax, low spending and small government. It favored growth, income and vibrancy. The European model is high tax, high spending and big government. It favored fairness, equality and stability. It also featured unemployment rates double those of the United States, often hovering around 10 percent. Now that is no longer the case. Under Obama’s economic leadership, U.S. unemployment rates are surpassing Europe’s.

    Commenting on President Obama’s budget, Rep. Paul Ryan (R-WI) told National Review Online: “This budget presents a choice of two futures. … This budget is about more than specific programs or policies. It is really about the American idea, and whether we want to move towards a European-style welfare state.” Allowing the Obama Tax Hikes to occur will be one huge step down that road. Is that really the choice Americans want to make?

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    39 Responses to Morning Bell: The Obama Tax Hikes, Another Step Toward a European Welfare State

    1. Jack E Lohman says:

      Look, the poor people can't pull us out of this, only the rich can. Tax hikes on the most wealthy — at least for the moment — are necessary. But then, get the campaign bribes out of the political system and let the Pols run the country as any non-conflicted board of directors would. No company could sustain internal corruption and neither can our federal government.

      Jack Lohman …

    2. Lew Richards Palm Ba says:

      Yes, allowing the Bush tax cuts to expire is just another Obama scheme to force America deeper into his agenda for a Socialistic America.Every path designed by Obama and his thugs has driven our economy into bankruptcy. This man is not looking our fot the best interest o America but instead is wanting to destroy our once great nation.

      In just twenty months he has done more damage to our citizens than any other dictator.For the first time in America's history our most dangerous enemy now sits in our White House and directs our destruction!! Wake up America!!!

    3. West Texan says:

      From my comment on JD Foster's earlier blog, "I forget which democrat proposed this, but he wants to lower the income tax rate for urbanites to offset their cost of living. Sure, homes and some goods may cost more, but this constituent back-scratcher doesn’t tell his people their wages are higher to offset this cost differential. Here in rural America, our cost of living is typically lower, but so are our wages. This said, urban dwellers will by comparison pay lower taxes at the expense [of] rural folk, who’ll pay the greatest share from what little they earn. And obviously to the delight of the far left’s [wealthy earners]…."

    4. ThomNJ says:

      I think that obama really wants to go one step further than a Euroweenie welfare state. He'd be delighted if somehow he got "elected for life" as dictator (DOTUS), er, president.

    5. Mary.... WI says:

      Slim chance the house will vote against this tax hike. Why does the democrat party hate America so much?! Why does the democrat party want America to become a country of desperation? What have the members of the democrat party been promised in exchange for the destruction of this country? Vile, corrupt people completely out of touch with the "former" United States of America.

      I mentioned to a friend of mine the direction this president is taking this country is so upsetting to me I think it's making me crazy! She assured me most folks she's talked with are feeling the same way.

    6. Ruth Rhodes SAn Anto says:

      How is it that we the American people can all say what we want and don't want the the White HOuse does as ir pleases. The Judge yesterday went against the people on marriage, the adm is going to raise taxes, where is he thinking the tax money will come from when we all have no business. The elite will not have as much either if the common man has no work.

      If the borders or not secure, it will even get worse. What are they thinking???

      Not down the line, I think. How about their children.

      We the middle class are sick at out stomachs as this is just killing the common men and women.

    7. Timpclimber Provo, U says:

      If we don't reverse this spending of what we don't have the horror stories my parents used to tell me of the 1930s will add a new chapter for my children and grandchildren. My father worked in the bean fields of California and my mother accepted a pay cut of 50% to keep her job. They were always thrifty not living beyond their means. Too bad our government forgot these lessons. May we not forget them in November.

    8. Mark, Georgia says:

      Normally one would think that this president is a complete failure at all he has done or not done, however many of us have never been fooled by this man. All he is doing is by design. finally more and more people are waking up. We can not set back and watch any longer, get involved in some compacity. Stay law abiding and get in good with your local police departments and sheriff. remind all elected officials of their oaths to defend the constitution. We must hold on to our liberty and justice for all! We must not be devided into small fractions but fight for freedom against all forms of tyranny.

    9. Blair Franconia, NH says:

      Obama wants to hike taxes on "the rich." But who are "the rich?" "The rich" are the

      small business owners who are responsible for creating all the jobs in this country.

      "The rich" are the people who pay their taxes at the personal, not the corporate, rate.

      In short, they're those people who make it possible for us to do what we do. These are the people Obama wants to raise taxes on. The definition of rich by Obama is north of two hundred fifty thousand dollars. Two hundred fifty thousand dollars may have been considered "rich" in 1980 but today it's middle class.

    10. john arizona says:

      Aren't there any Democrats in the US Congress who see what's going on? Or are they all bent on a socialistic state? Apparently the will of the people doesn't mean anything to the incumbent democrats.

    11. Mary Anne, New York says:

      What can we do???? I live in New York State and no matter what I feel, this is a stupid Democratic and Union state! They will continue to vote Democratic and nothing will change that. I feel totally defeated and getting madder and madder every day.

    12. Cliff South Carolina says:

      Check out bill# S 1619. "The Livable Communities Act". This forces cities to construct housing communities to be closer to the city or town so they can use public transportation or walk to wherever they need to go, saving gas and cutting on pollution, just like Europe.

    13. Robert Reynolds says:

      The presidents closest adviser, confidant and speech writer spent his early days as a mass-murderer-terrorist wannabe. As his bombs never worked right, he has devised a much more destructive instrument in the Manchurian candidate named Obama. And Bill Ayers does not have to do anything more than sit back and watch his fellow traveler initiate programs that will leave this nation in a complete mess.

    14. Jack E Lohman says:

      Blair, make it that the rich are those over $1M per year. Would you buy it then? And let me assure you, as a former small business owner, virtually ZERO small business owners make over that. And if they want to add jobs and technology, all they have to do is spend tax-free corporate money rather than personal money!

      And understand this: Those OVER $1M and not investing in America. They will invest where workers get paid $1 per hour and profits are high. Taxes should be raised on them.

      Jack Lohman …

    15. Jay A Anema says:

      The Seatle Times this morning in an article about Judge Walker proclaimed him as a "Conservative" "Independent". Liberal Progressives in charge of who is or is not Conservative?

    16. Jay A Anema Seattle, says:

      The Seattle Times carried an article saying Judge walker is a "Conservative" and an "Independent. Media run amok. Who put Liberal Progressives in charge of deciding who is Conservative?

    17. KLIMAX Baltimore, Ma says:

      Thomas Jefferson noted "A Democracy will cease when you take away from those who are willing to work and give to those who would not" This fits the direction NObama is taking us !! The problem NObama is having is he is having trouble borrowing money so his next move is to raise taxes to generate more money for him to spend !! He is borrowing 47 cents of every dollar he is spending now and his cash flow is drying up but he will not cut spending he wants to spend more !!! He should do what Regan did when faced with a similar situation he lowered taxes for three years and the economy rebounded then the tax cuts expired !! I don't know what he has up his sleave but the way things are going the "Middle Class" will cease to exist soon !!!!

    18. KC - New Mexico says:

      What I find interesting now is that those in education have some funds to help get through the coming year, so do the governmental employed union members. But what happens next year? Will the money making continue or will really hard questions and their resulting decisions be made?

      When the country is not working (<10% unemployed) plus all those who have given up, tax funding is just not there. Then, the government still needs to provide for all those who have little including all the illegals. Therefore the money must come from those working. Sure, we can pay more in taxes but the breaking point is close. American's who work just might decide to stop working and get on the gravy train of free handouts. Then what???

      I think the answer comes back to the flat tax initiatives – everyone pays 10%, no exceptions – if you get money from work, charities (religion is included), then you pay, no deductions for over breeding etc.

      2nd – get American's back to work, even the jobs that they may not want to do but at least they are working. No more free handouts unless you perform work or at least community work to earn the handouts.

    19. Debbie Erickson - Al says:

      @ Ruth from San Antonio. While I agree with your comments for the most part, Americans do not want to do the type of work that most immigrant workers do. The link attached is a challenge commented on by Stephen Colbert. Take a look, and be my guest to work out in the heat for 12+ hour days.


    20. Paula, Oklahoma says:

      "Born free, Taxed to Death"….that was on a t-shirt I saw yesterday….it seems that it is only a matter of time until the "Born free" is gone. I agree with Mark in Georgia, this is not a failing of Obama, it is his plan. Americans need to wake up and fight this agenda or soon we won't be able to.

    21. Mike, Omaha says:

      One other aspect of the European welfare state model that Obama desires for us is that it is possible in part because the US has been able to afford to be the policeman of the world. Thus allowing the Europeans to underspend on national defense and use the savings to support their social programs. If we chose their model our ability to defend ourselves, let alone the free world, will be greatly diminished – to everyone's great peril.

    22. Judith in Michigan says:

      This administraton began by being subtle in their intentions of creating a European-style Socialist utopia. In their panic now, they are dropping all pretense and rushing to get as much pushed through while they have the chance. The American people are on to their schemes. and are rebeling.

      We can talk all we want about "why aren't they seeing the damage being done, and why don't they do this or that." But the bottom line is that they are doing exactly as they planned. There is absolutely no other way to achieve their grand plan of a Socialist America. Deconstruct the capitalist, freedom-based society, then rebuild it up to fit their own ideology. Total government power and control. The New World Order. Once Americans accept that premise, then we can move forward to stop it.

    23. Kelly Carter says:

      Off the Subject here, I see Japan wants an apology from the US for dropping the bomb on them. I understand some of the pain and suffering many of them have gone through. However, I have not forgot Pearl Harbor or the Batan Death March. The Only reason Japan didn't drop a atomic bomb on Pearl, they didn't have one.

      I guess we should let them put a giant buda statue at the Pearl Harbor Mamorial, like the Muslums will build a mosque at Ground Zero.

    24. E.P.WOOLLEY,CLEBURNE says:

      Raise taxes temporarily to pay down the national debt,then reduce taxes?I have never seen a temporary tax .Our beloved congress will rise to the ocassion to spend more.Reduce spending,period.If this fails vote in a new congress.May the blessings of Heaven rest upon us and all regular Americans.

    25. Mia Chicago, IL says:

      Two big factors of post WWII Europe that no one mentions and Obama doesn't know or care about:

      1. The will of the people. After two major wars fought on their land from 1914-

      1945 and the major Great Depression inbetween; those years of destruction,

      dictators, war, poverty and constant rebuilding left the Europeans tired and

      drained from the strain of over thirty years of chaos. Socialism and big

      government "solved" their problems for the near future and took care of the

      exhausted populace. They were willing to give up some of their freedoms for

      the lack of security in the first half of the 20th century. But this was only

      possible because……

      2. US Military. Europe was able to provide their citizens a nanny state because

      the US became the world's policemen (not by choice, but by necessity)

      after WWII. Europe had the luxury of spending little for their countries'

      defense (as was/is true of most of our allies and neighbors) and this

      necessary, costly burden is bore by the US taxpayers. In light of

      Communism, Soviet threats, terrorists, what choice did the US have? So

      when progressives, liberals, etc rip the US for no national healthcare, no

      European 5- 6 weeks annual vacations, no nanny state, they show their

      ignorance or desire. We have kept the US and other democracies free; and

      freedom isn't free. But the progressives only want their utopia and will destroy

      anything or anyone who disagrees. They really want power to dictate our

      lives and will never acknowledge that only God gives us our rights and


    26. Bob, PA says:

      If we are really serious about what is going on in DC, we have the tools to change it. In November we need to not only vote, but get others out to vote.

    27. wade, texas says:

      this ob non-care about america, the people of america, is well know-he is driving us into oblivion. he wants govt control that is his only agenda.

      i hope that they people who voted for him are now awake!!!!!!!!!!!!!!!!!

      vote em all out!!!!!!!!!!!!!!!

    28. Rich McCrackin says:

      These recent job numbers do not exclude the seasonality adjustment usually incorporated into this number, this time of year. The car manufacturers shut down for re-tooling in July normally, but not this year. The government is well aware of this, but still kept the adjustment, reporting numbers that are in their favor. I believe the job distortion is 21,000 private jobs, but I am not certain.

    29. Lowe Utah says:

      I do not , have not, and will not support higher taxes. I was in a small business and those taxes and, don't forget, fees helped destroy it.

    30. Drew Page, IL says:

      Well there you have it. Biden says the only thing wrong with the first Stimulus is that it didn't put us further in debt. Something that the Democrats will try to remedy by spending even more before they are thrown out of office.

      In response to John in Arizona, who asks "Don't any of the democrats in Congress see what's going on?", the answer is that they know perfectly well what is going on. They are pandering to the unions and to minorities and illegal aliens, promising them freebies at the expense of taxpayers they call "the rich", as they have always done. They would sell their mothers for a vote. They never tire of spending other people's money and they don't give a damn about anyone who doesn't like it.

    31. Joe NY says:

      Heaven help us — PLEASE!

    32. Steven Coy Westminst says:

      Impeach the Bastard Now, he is an ILLEGAL Kenyan Born Radical Muslim who hates America and White people. What else is there mto say?

    33. Jackson, Denton TX says:

      The "Weasel In Chief" is in charge of the henhouse. The nutjobs in CA want to legalize and tax marijuana, so what will the tax money go for? Drug Rehab?

      When the Bush tax cuts are left to expire and the inheritance tax exemption goes away your heirs will pay 55% of your estate to the Govt even if it means selling the farm or other business which is helping drive our economic engine. He is not going to stop until he taxes us into oblivion. It is time for another REAL Tea Party..dump Him and his corrupt cohorts into the harbor.

    34. Jerry Porter, Freder says:

      Hello out there! Except for drug dealers and pimps, why are people around the world even amidst the insanity of an Obama Regime, still clamor to come to America, legally and illegally, even amidst the governance of the Obama Regime?

    35. Pingback: Morning Bell: The Obama Tax Hikes, Another Step Toward a European … « Tax explained to you.

    36. Tenn Slim says:

      We are right on track.

      Rules for Radicals, 1. Upset, corral, denigrate, manage, the existing system.

      2. Re Structure the newly created/disrupted system, fiscally, personally,

      3. Re DIRECT the new system, toward the goals your group envision.

      4. And this is where we are now. Fend off attempts to re re direct, bolster the efforts already made, divert attention to Other Crisis. Funnel the major effort in the desired direction. NEVER EVER WAVER from the ultimate goal.

      5. And this is the next step. AVOID the Major Obstacles of Legal impediements. IE Electoral Change. Impede, Avoid, denigrate, demean, solicit support.

      Goal. The demise of the USA GNP, the USA Constitution, the USA Productive Electorate into a US Socialistic Welfare state.

      If this latest Senate Passage is not enough to clarify the Goal, read CPUSA Agenda, Democratic Strategist Agenda, Center for American Progress "What America wants" article. Clear, consice, and w/o conscience.


      Semper Fi

      We WILL Prevail

    37. Tenn Slim says:

      Reviewing the comments.

      1. Apparently the posters "get it" meaning the OBNA Desired end game.


      There are a lot of folks, that do not understand the past history of the Left.

      "When defeated, or set back, go underground, re emerge stronger and abler", a basic survival tenet we see in play today.

      IF, the November election does in fact toss the Leftist down the Capital steps, then the obvious "Underground" is the Civil Service, 2nd, 3rd and 4th tiers. Appointees at this level, plus newly hires, dedicated to the Leftist agenda, will be the seeds for re emergence, long after this current attempt is history.

      We will not see the Left go quietly into the night, come November.


      Semper Fi

      We WILL Prevail

    38. Barb, Wisconsin says:

      Open your eyes America. Obama's plan to destroy this country as freedom loving and capitalistic is as deliberate as his every move. He hates this country and has said many times prior to his election that he would transform it. To those if you who voted for this communist, did you not see and hear that?

      Now it's clear that elections have serious consequences. He is a died in the wool communist, as were his father and mother. They both left him as a child to follow their communist endeavors. He is bound and determined to destroy our country as founded and kiss your God-given liberties goodbye. God help America.

    39. Pingback: July – Dec 2010 Browseworthy Stories Archive « Clear Thinking

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