The Obama Tax Dilemma

You can avoid reality for only so long, then it comes rushing back and smacks you right in the face. I think Mr. Obama’s face is smarting right now. Mr. Obama has  recently been  reaquainted  with reality. The super rich just don’t have enough money to rob. So, who can you rob, Mr. Obama? Ah yes, that is the dilemma, isn’t it? That is the problem with political rhetoric. It sometimes comes back a kicks you square in the butt.

In 2008, Obama campaigned on a message of tax the rich and take care Joe Plumber. The “rich” came to be defined as those making over $250,000 per year. However, the reality is finally sinking in that there is no way that taxing the rich can even come close to paying for all of Obama’s programs. There just isn’t enough money in the over $250,000 demographic. Where is there enough money?  According to this Wall Street Journal article,  Obama would have to go after the over $100,000 per year demographic.

Do the Joe Plumbers of America that got Obama elected in 2008 make over $100,000? Maybe not. But, Joe and his wife together often do make over $100,000.  So, what are you going to do, Mr. Obama? Let’s see what the WSJ article has to say:

In the New Republic, the Brookings Institution’s William Galston zeroes in on the fuzzy math. “Unless Obama is prepared to tolerate huge deficits indefinitely,” he writes, “or to emulate arch-conservatives and curb the budget deficit with spending cuts only, he will have to break his unsustainable tax pledge at some point. The only question is when.”

 Then, referring to the demographic group earning between $ 100,000 and $ 200,000, we find this:

 The political problem is that this is a block that went Republican by 56% to 43% in 2010.

“The President’s political advisers are keenly aware of the fact that Democrats need to improve their performance with these voters or face defeat in 2012,” Mr. Salam writes. “This helps explain the profound irrationality of the Obama administration’s approach to key public-policy questions.” By irrationality, he means what Mr. Galston means: the split between what the president needs to do economically to fund his programs and what he did politically to get himself elected.

So what are you going to do, big boy? Are you going to go after Joe Plumber with higher taxes? Do you think that would get you re-elected? Or do you need to scale back your programs to reduce spending? Or maybe you could convince the American people that we just need to borrow a whole lot more money? Hmmmm. Being President is just a little tougher than being a community organizer, isn’t it? No matter where you hide, Mr. President, reality will find you.

Mr. Obama is not the only one faced with a reality check.  The American voter has to face that very same reality as point out by the WSJ article:

 So here’s the question for 2012: If we the people don’t want the higher taxes that are needed to support not only ObamaCare but a growing federal government, are we willing to support the real cuts that go along with that choice? And if we decide we don’t want these programs touched, will we accept the higher taxes that go along with keeping them, including for people making a lot less than $250,000?

The 2012 elections are shaping-up to be a real slug fest. All I can say is : LET’ GET IT ON!

What do you think?

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30 thoughts on “The Obama Tax Dilemma

  1. It will be fun to see how obama handles this. No matter how, he will make it look like somebody else’s fault.

  2. No worry mates. According to the Daily KOS, President Obama’s approval rate is in the high 70’s. Let them keep drinking the cool aid. Of course these are the same free range idiots that elected him into office.

    1. Hi UP. do be careful when hanging out at Daily KOS. That can be igan Tech is why I ask.dangerous for a sane mind.
      BTW, is that UP as in Upper Peninsula of Michigan? I went to Michigan Tech is why I ask.

  3. Jim, it is called being in a box. Unfortunately, we are in there with him. Way too many of the US electorate have failed to perform due diligence at the ballot box for too many decades.
    Just look at the last three prezs, all empty suits looking for power and wealth, and they got it. Look at what is on deck for 2012. A while back you were posting about keeping a positive outlook.
    I firmly believe we will see the “Arab Spring” come to our shores. Then we will see if US Security Forces will fire on their own people.

    1. It doesn’t have to come to that, Dave, if we can only find some decent leadership on the Republican side. So far, I don’t see it. If we don’t find a leader that people can rally around, I would say that what we saw in Wisconsin is just the tip of the iceberg of what could come our way.

  4. Pennsylvania is having a primary today. The only reason I know is that I heard from the Tea Party. There was zero on the local news this morning. Lots of Judges running. One of the most important choice we can make–they will decide if we remain free and the extent of our liberties. No one knows, no one cares. This says it all.

  5. Raising taxes creates a death spiral. Higher taxes result in less money in the private sector for spending, creating businesses, and investment. Soon the whole thing collapses.

    Good lord! I just had a vision of the Twin Towers on 9/11 spring into my head. The planes hit at the top… when the tops were structurally weakened by the planes and the flames, the towers collapsed from the top down… the top falling and crushing everything below.

    Exactly what happens when you tax away the money from the upper 20% of the economy. And the planes are being driven by government spending… the flames are taxation. Gives me chills.

  6. Read Obama’s lips: No new taxes for 95% of Americans. I have little doubt he will wait until his reinauguration to spring it on the average person who still think he’s telling the truth on this issue.

  7. I’m ready for a slug-fest in 2012. Screw Obama and his socialist bull crap. Lets find us a free-market patriotic candidate (Herman Cain, anyone?) and let’s kick some ass.

  8. Give a look to Tim Pawlenty (T-Paw). He has decent conservative creds, has taken tough stands in a very Democrat heavy state (Minnesota), and understands that business is the foundation of America, not government. I think he’ll get rolling and do pretty well. I like Herman Cain… T-Paw/Cain would be fine with me! Nobody has found their voice yet.

    I am relieved that Romney and Gingrich have stepped in it to the point where their campaigns will not recover. Give us a NEW voice. The power duo would be Ryan/Christie.

  9. Great post Jim. I think the MSM will provide the cover by tearing down all the Republican candidates. They’re not going to do anything to throw Obama off his game. As for the taxes, he is indeed in a bit of a quandary. What to do…

  10. As I go through and read what a variety of the bloggers are saying, I’m getting the idea that Obama is vulnerable on the economy. Obama will try to slow down the destruction of American long enough to gain re-election so he can finish the job. The only thing that can stop the GOP is the GOP. If they attack on issues, and only the issues, and use a good candidate to do so, they can wipe Obama out. My fear is that they are searching in the RINO reserve for the candidate.

    1. Well said, Matt. Right now the GOP is their own worst enemy. The Dems wanted Hillary and didn’t get her. We can defeat the GOP establishment. I’m still hopeful a good candidate will step forward. It’s just hard to have patients.

  11. Obama is learning that governing is a little different than campaigning and he is going to have to decide what to do about this. He has painted himself into a corner and he will either have to cut spending or break his campaign promise about only taxing the rich. Many of us tried to warn the people that he couldn’t possibly pay for his programs with the taxes he was proposing but we were not listened to–I hope the people are listening now.

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