Talk Back: Populism and Taxes
Not too long ago, Obama was pushing tax increases for those making over 250,000. Now he’s had a change of heart. If you make $999,999.00 or less he doesn’t want to touch your money. If you make a dollar more than that, however, you’ll be responsible for paying for the next “stimulus” known as the American Jobs Act.
Obama’s policy shift is sheer populism. If taxes need to be increased why not increase the tax burden on those earning more than $100,000.00 (a number well above the average income). The reason is that too many voters fall in that category and Obama isn’t really worried about getting the tax money, he’s worried about getting votes.
All of these shenanigans are for one reason: so that Obama can say “Republicans blocked American jobs to protect millionaires.” This is all fine and well, but I’m getting tired of plans, acts, and bills that serve no purpose but firing up “the base.” We need real jobs and practical changes to the tax code to do so.
The current poor vs. rich public discourse makes real change nearly impossible. On January 1st Canada dropped the corporate tax rate to 15% with little to no impact on tax revenue. The U.S. is at 35%. Where would you want to incorporate your business? China is at 15% for crying out loud. Alas, no change will happen until the election cycle wraps up. Hope you enjoy the populism, it’s all you’re likely to get.