Wednesday, December 5, 2012

Who’s On First? Is Anybody Else confused?




Tax rate changes are up this year and maybe down next year? Or is it down, then up? Is this the teeter-totter approach to cliff diving? The examiner.com asks: are Americans winning or losing on the teeter-totter?

The S&P 500 is up from January 2012. It is a safe assumption that the wealthy are wealthier than they were in 2011. Therefore raising the wealthy Americans’ tax rate for 2012 is not a huge impact to the federal deficit, nor will it be hurtful to the wealthy who remain wealthier than they were last year; a half-pence for the pauper. For a President who ran for office promising a “Robin Hood” presidency, did the people receive “Prince John”?

The purposed tax changes in fact are more harm than good. The S&P 500 will likely be continuing a downward trend for 2013. Lowering the taxes to the wealthy for 2013 will ease this pinch. It is more of the wealthy getting their pat-on-the-back and more of the “good ol’ boy politics”.  However, cutting benefits to the elderly is harmful to the populous. Obama is considering the “Lizzie Borden” approach to economics; taking the hatchet to benefits for the elderly. People who can barely afford their medications, food and housing will now get their ax, a cut in social security benefits.  Welcome to 2012-13 America….

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