Truly, I didn’t expect to find a story critical of Obama’s tax plan on the ABC news website but there it is! It certainly comes off as vaguely critical of the messiah, Barack Obama. The author, Emily Friedman, has focused on how Obama’s tax plan will impact people making over $250,000 annually. The consensus among the interviewees is that they will do what is necessary to earn less to avoid Obama’s punitive taxes.
“Dr. Sharon Poczatek, who runs her own dental practice in Boulder, Colo., said that she too is trying to figure out ways to get out of paying the taxes proposed in Obama’s plan.
‘I’ve put thought into how to get under $250,000,’ said Poczatek. ‘it would mean working fewer days which means having fewer employees, seeing fewer patients and taking time off.’
‘Generally it means being less productive,’ she said.
‘The motivation for a lot of people like me – dentists, entrepreneurs, lawyers – is that the more you work the more money you make,’ said Poczatek. ‘But if I’m going to be working just to give it back to the government — it’s de-motivating and demoralizing.'”
Dr. Poczatek is absolutely right. The demoralization that she’s feeling is a natural side-effect of redistributive economics. The real unintended consequences of Obama’s tax policy will be the loss of productivity. Think job losses now are bad? Just wait.
“Obama’s budget proposal calls for $989 billion in new taxes over the next 10 years, most of which will be earned from increased taxes on individuals who make more than $200,000 and from families who make more than $250,000.
The expiration of the Bush administration’s tax cuts at the end of 2010 would garner an estimated $338 billion, $179 billion would come from the elimination of some itemized deductions for higher-income taxpayers and $118 billion would be brought in from a hike in the capital gains tax. The remaining $353 billion would come from taxes on businesses.”
Not many are talking about how the expiration of the Bush tax cuts will affect the economy but we should be. The expiration of those cuts will equal a tax increase for the bulk of taxpayers.
The ABC news piece also features a poll. The question is, “is it fair to reduce salaries to sidestep President Obama’s tax proposal?” As of 8:08 this morning, the answer “Yes. I also would find ways to decrease my salary to avoid taxes” had a significant lead.