Obama’s Tax Increases: Heralding The Beginning Of The Second Great Depression

Are you ready for double-digit unemployment and double-digit inflation rates? We haven’t seen that since Jimmy Carter. But, they are on their way here again.

Barack Obama’s tax-and-spend liberal policies are the same exact policies that Jimmy Carter tried and the same exact policies that took us into the recession of late 70’s/early 80’s. We got out of that recession by cutting taxes and letting the American economy grow.

Only this time, Obama’s policies are Carter’s policies on steroids. The results are going to be even more catastrophic than Carter’s, and those of us who remember 1979 know exactly how catastrophic they were. It was the first time since the Great Depression that we has a misiery index over 20. (Misery index = inflation rate plus unemployment rate.)

Here is what Barack Obama wants to do to our economy according to Jake Tapper of ABC News:

President Obama’s budget proposes $989 billion in new taxes over the course of the next 10 years, starting fiscal year 2011, most of which are tax increases on individuals.

1) On people making more than $250,000.

$338 billion – Bush tax cuts expire
$179 billlion – eliminate itemized deduction
$118 billion – capital gains tax hike

Total: $636 billion/10 years

2) Businesses:

$17 billion – Reinstate Superfund taxes
$24 billion – tax carried-interest as income
$5 billion – codify “economic substance doctrine”
$61 billion – repeal LIFO
$210 billion – international enforcement, reform deferral, other tax reform
$4 billion – information reporting for rental payments
$5.3 billion – excise tax on Gulf of Mexico oil and gas
$3.4 billion – repeal expensing of tangible drilling costs
$62 million – repeal deduction for tertiary injectants
$49 million – repeal passive loss exception for working interests in oil and natural gas properties
$13 billion – repeal manufacturing tax deduction for oil and natural gas companies
$1 billion – increase to 7 years geological and geophysical amortization period for independent producers
$882 million – eliminate advanced earned income tax credit

Total: $353 billion/10 years

Several things to notice here:

1. Look at all the new taxes on oil and gas companies. How high do you think the price for a gallon of gas will go? How badly do you think that will affect low and middle income families? It is not only the gas that will go up in price but anything that has to be transported will go up in price as well. That includes food, clothing and any other consumer commodity that must be transported by ship, truck or rail.

2. The total revenue on these new taxes is $989 billion. That doesn’t even cover the porkulus/spendulus bill (1.3 trillion total in spending and interest) and represents only about half of Obama’s proposed $1.75 trillion deficit! Who among you really believes that the Dems are going to stop their tax-and-spend orgy at people making more than $250,000 per year? How long before the proposed new taxes extend downwards towards people making $100,000 per year, or $75,000 per year or $50,000 per year? I’m betting months.

I have historical fact on my side for that last assertion. In 1992, Bill Clinton promised that his new taxes would not affect anyone making less than $90,000 per year. After they added up all the numbers, a new tax law was passed through Congress which levied new taxes on people making as little as $36,000 per year. So much for unkeepable promises.

These new taxes will mark the beginning of the Second Great Depression, just as Smoot-Hawley heralded the onset of the First Great Depression.

When all is said and done, the Democrats will only have themselves to blame for the coming financial disaster, but you can be certain they will be trying to pass the blame off on someone else.

You can access the complete entry on-line here:

Obama’s Budget: Almost $1 Trillion In New Taxes Over Next 10 yrs, Starting 2011
Jake Tapper
ABC News
February 26, 2009

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2 Responses

  1. Actually the last of the double digit unemployment and inflation numbers occurred in 1982, but economic policy takes 18-24 months to have a full impact so these are Carter legacy numbers. I’m just a stickler for accuracy, nothing personal.

    As for Gas prices, you are correct. Obama & co. wants high gas prices. An article in Wired magazine shortly after Katrina provides the basis of this opinion. In that article Wired proposes it will take sustained prices of $5/gallon to support alternative energy development. This has been declared a prime directive of the Obama administration. They will do what it takes, stop domestic production and raise taxes on oil to make certain this happens. I will go on the record as predicting $8/gallon before 2011 and certainly by 2015 if Obama gets a second term, which I doubt but hey, W. got one & I didn’t expect that.

    • Thanks AI,

      I probably wasn’t clear on that point. But I did write: “Barack Obama’s tax-and-spend liberal policies are the same exact policies that Jimmy Carter tried and the same exact policies that took us into the recession of late 70’s/early 80’s.”

      What I was trying to convey is exactly what you responded. It takes a year and a half to two years for economic policy to fully implement and the double-digit unemployment was a result of Carter’s policies.

      Thanks for responding to my post.

      84rules

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