CUTTING TAXES FOR PEOPLE WHO DON’T PAY TAXES. (http://boortz.com/nuze/200810/10102008.html)“Do you really want to know how in the world Barack Obama is going to cut taxes on 95% of Americans when 45% of these Americans don’t pay income taxes in the first place? You should already know the answer to this question … but if you’ve been listening to too much sports talk radio, here you go. It’s very simple. Obama will just pass a series of new tax credits for the Americans. Tax credits — sounds pretty good, doesn’t it? Those tax credits will lower taxes for just about everyone! Well … there are a few things you need to know about these so-called credits.First … these tax credits will not be available to the evil high income earners who we rely on to create the new jobs that will help our economy grow. The tax credits are only for people who might be likely to vote democrat.Secondly … they’re not just tax credits, they’re “refundable” tax credits. In other words, they’re a fraud. As we know, about 45% of Americans don’t pay income taxes. A tax credit is not useful to someone who owes no income taxes … unless, that is, it is a “refundable” credit. Now what does that mean? It means that if you do not make enough to pay income taxes, the government will simply write you a check equal to the amount of the credit you can’t use! Do you know what we used to call this? Welfare, that’s what. Barack Obama’s promise of a tax cut for 95% of Americans is really nothing less than a promise of a new welfare income redistribution program.”
“Secondly … they’re not just tax credits, they’re ‘refundable’ tax credits. In other words, they’re a fraud. As we know, about 45% of Americans don’t pay income taxes. A tax credit is not useful to someone who owes no income taxes … unless, that is, it is a ‘refundable’ credit. Now what does that mean? It means that if you do not make enough to pay income taxes, the government will simply write you a check equal to the amount of the credit you can’t use! Do you know what we used to call this? Welfare, that’s what. Barack Obama’s promise of a tax cut for 95% of Americans is really nothing less than a promise of a new welfare income redistribution program.”
“Tax credits may be characterized as either refundable or non-refundable, or equivalently non-wastable or wastable. Refundable or non-wastable tax credits can reduce the tax owed below zero, and result in a net payment to the taxpayer beyond their own payments into the tax system, appearing to be a moderate form of negative income tax.”
Now the reality of this is that there are almost one million people who, under Obama’s tax plan, will start receiving money from the government as tax refund credits. These are people who have not paid any income tax. Even if they all receive the smallest of Obama’s proposed refund, it will cost the taxpayers of America $500,000,000,000. Yes that is 500 BILLION DOLLARS! If you start to consider and add in the possibility of a $1000 refundable credit for couples and a $4000 refundable credit for college tuition, we are looking at an added tax burden that could reach a couple of trillion dollars. Remember, this is only considering the one million recipients who already pay no taxes.
“A $1,000 ‘Making Work Pay’ Tax Credit. For 95 percent of workers and their families—150 million workers overall—the ‘Making Work Pay’ credit will provide a refundable tax cut of $500 for workers or $1,000 for working couples. This credit will benefit over 15 million self employed workers and for 10 million low-income Americans, will completely eliminate their federal income taxes.”
“Eliminating Capital Gains Taxes for Entrepreneurs and Investors in Small Business. Barack Obama understands that small businesses are the engines of our economy, and he will eliminate all capital gains taxes on investments in small and start up firms.”
“Cutting Corporate Tax Rates for Firms that Create Jobs in America. Barack Obama will repeal tax breaks and loopholes that reward corporations that retain their earnings overseas, and will use those savings to lower corporate tax rates for companies that expand or start operations in the United States.”
“Barack Obama will keep taxes low for everyone, while working to reform our tax code and make sure that everyone pays their fair share,”
“Obama also believes that…it is vital for candidates to put forward specific ideas on how they will pay for their proposals. That is why he has called for…repealing a portion of the tax cuts passed in the last eight years for families making over $250,000.”
“Our tax code is riddled with special interest loopholes that allow some corporations and wealthy individuals to avoid paying their fair share of taxes. As President, Obama would move aggressively to close inefficient loopholes.”
For Tax Year 2006
Percentiles Ranked by AGI AGI Threshold on Percentiles Percentage of Federal Personal Income Tax Paid Top 1% $388,806 39.89 Top 5% $153,542 60.14 Top 10% $108,904 70.79 Top 25% $64,702 86.27 Top 50% $ 31,987 97.01 Bottom 50% <$31,987 2.99 Note: AGI is Adjusted Gross Income
Source: Internal Revenue Service(source: http://www.ntu.org/main/page.php?PageID=6 )
The top 1% of wage earners pay more than ten times (10 x) the taxes of the bottom 50% combined!
“Eliminating special tax breaks for oil and gas companies: including repealing special expensing rules, foreign tax credit benefits, and manufacturing deductions for oil and gas firms.”
“Cracking down on international tax havens: According to a recent Congressional investigation, offshore tax abuse costs this country up to $100 billion each year. Barack Obama has been a leader in the Senate on designing efforts to crack down on tax havens by requiring greater disclosure of financial transactions in tax secrecy jurisdictions. As President, Obama would work with Congress to enact meaningful legislation to ensure that the Treasury and IRS have the tools they need to close down the use of international tax havens for improper tax avoidance or tax evasion. This will save the United States tens of billions of dollars each year.”