The fundamental stupidity of the Obama tax plan is that he will increases taxes on companies that actually make profits in these tough times. The impact of those taxes will be two-fold. He does not just want to increase the corporate tax rate but also the capital gains taxes on anyone that happens to want to invest in that company (individual shareholder, mutual funds, 401ks) So when many companies struggle to turn a profit and have to let people go, just who will be left to employ them? Not so many. Even those that are hiring are likely to stretch out those decisions over multiple months or quarters. Compound this slow hiring over 100,000s of companies and millions of jobs; the overall unemploymment rate will climb rapidly.
So how does Obama’s plan counteract that impact. You will get the $1000 tax credit that Obama is setting up. Looks like a lot of people will be needing that credit. Maybe he will extend the time at which you can collect unemployment benefits. At least he is trying to help out. I am guessing that regardless of your job you can outperform that $1000 tax credit over the course of a year. If not let me know and I will find someone to help you out.
Many think that there is no way Democrats would let this happen, that this makes absolutely no sense to let the economy spiral downward. But those people are looking at this from the perspective I out forth on tax revenue and the impact on jobs. I submit that you are looking at this from the wrong angle if you want to understand the motive. Obama and his ilk look at this as creating more fairness. Revenue and jobs do not matter in that contect. The fact that is also creates more dependent people is a “pleasant” side-effect. Their reaction to the inevitable impact is to direct the angry unemployed people to lash out against anyone that still has a job and those companies that dared to try and profit from “their pain”. They will demand more government intervention and more fariness to help them out and the spiral continues.
Sounds almost unbleiveable, but pull your head from the sand and truly look at the programs put in place (or tried) by Democrats since the great society.