Obama’s statements on taxes explained

Having the benefit of years of pouring through data and trying to correct entrenched assumptions about what that data is telling us, has been far more useful in this election than in the past. I find it fascinating to listen to the “words” and “speeches” of Oabama and the ease at which he uses statistics and statements to back up false arguments. It is not surprising that many fall for it.

Statements like ‘tax cuts for 95% of Americans” leaves out the little fact the close to 40% of Americans do not pay taxes so their “tax cut” is actually a check based on someone else’s tax payments. That didn’t uses to be called a tax cut. It used to be called welfare or socialism. But “tax cut” sounds so much better and 95% is such a high number. The Wall Street Journal went in to this as well yesterday. Un fortunately their numbers are worse then I thought, they say under Obama 44% of people will n0t pay taxes. Then others will get a refund check that pay very little taxes. We are approaching the 50% mark when all Liberals will have to do to retain full power in blame the rich Republicans for trying to tax you. 50% of the population will do almost whatever it takes to vote themselves money out of other peoples pockets. An economy built on those principles will not last. Can we make it even 2 or 4 years under this model? Will it ever be reversed? I fear the incline of the slippery slope just got higher and Obama is greasing the skids. In fact I see that the Wall Street Journal just hit on this point today. This is far more scary then any tax policy could ever be.

The other statements about “taxing the rich” or that “most small business make under $250,000” . I had heard (maybe seen) that 2/3 of the tax returns in the top 5% are s1 corporations and small businesses. How can these two be reconciled. Let me add in this simple fact, “most small businesses fail”. So since most fail and only a few succeed, Barrack Obama is right. Most small businesses due make under 250,000. The problem is that those that succeed and make money and want to grow and hire people are the ones he wants to tax an additional 10%. Those that succeed created 80% of the jobs in the last five years. Guess what… The Wall Street Journal hit on this yesterday.

I am glad to know I have this much influence over their reporting. Or maybe it is that they too have a bit of common sense. I am sure I will have more lying through statistics soon.

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Background

I am a political junky and Reagan conservative [at least I think so].

I grew up during Carter and shaped much of my beliefs in the years that followed. I lived through the airraid drills in the schools, the Iranian hostage crisis, and double digit unemployment (my father was included). I have heard about the 24% interest rates but at the time had no clue of that impact. I did enjoy the 6% saving account interest, but did not understand the negative impact that double digit inflation was having on my meager funds.

I survived as did this country and watched Reagan and Bush compete in 1979. If I remember properly my dad liked Bush better then. I then watched as a strong man with strong opinions captured the country by storm. I listened as he talked about how great we were and that this crisis was about to end. And end it he did. Dropping tax rates, growing business and cheering us the whole way. Driving revenues upward and bringing the American economy and people with it.

I went on to College in 1985 in a whole new world from the one I grew up in. I graduated in four years (or there abouts) in Engineering. I have spent the last 20+ years working with computers, applications, databases, business intelligence, well… numbers.

I have always had strong opinions based on my upbringing and education. Hypocrites and the continual abuse of statistics have been my biggest pet peeves. I decided that talking with family, friends and yelling a the television was not cathartic enough. I decided to start writing them down and to see what others thought. Well let’s see….