As most readers of this blog are keenly aware, I've been extremely apprehensive about the thought of Barack Obama leading this country through the many crises that we now face.
At this time I'm still uncertain whether or not Mr. Obama meets the minimum qualifications per Article II of the U.S Constitution regarding natural born citizenship. I don't need to elaborate hear but there are at least a half a dozen lawsuits pending throughout the country questioning this matter.
I'm also deeply concerned about Obama's ability to lead us as Commander-in-Chief through a world wide war on terror currently being fought by our troops on two different fronts. It also troubles me that for any other government job, Mr. Obama would not pass the background check necessary to obtain a security clearance regarding sensitive information.
But what affects me the most personally seems to be the Obama tax plan. I'm neither an accountant or tax attorney so my grasp may be limited but I am the owner of two subchapter S corporations and a managing member in a land development LLC. The plan appears to me to not be original but only a resurrection of the Clinton tax plan with Bush style rebates thrown in to the majority of tax payers. I strive to not reveal too much personal information online but I must make myself a little more vulnerable now because I can only relate to how this matter personally affects me.
As a stockholder in subchapter S corporations, the profit from those entities trickles down from the corporate tax return through schedule K-1 to my personal tax return. As a result of this my taxable income for 2007 was $359,967 of which I paid $96,866 in income tax. Of the $263,101 remaining, my family lived on less than $100,00. The balance went toward interest payments on a new commercial building for one business that must be later capitalized and a stock buyout of former partners from another business. So the majority of money was reinvested to help maintain local economic growth which ultimately added jobs.
If I understand the Obama tax plan correctly, my taxes would have been $142,546, a staggering $45,680 higher than what was paid. Consider the crippling economic effect on a nation full of closely held corporations. In my case alone between one and two jobs would be lost or as much as 8% of the work force! Can our nation sustain that type of blow? With the additional money contributing to big federal government spending, there would also be a draining of the local economy. Unless I'm missing something, an additional 8% of the poulation unemployed would force this nation to tumble into another 1930's type depression. Hopefully, there still remains in Congress enough common sense to prevent this from happening. Why penalize small business owners with higher taxes while offering a $1,000 rebate to 95% of the population causing nearly 16% to become unemployed forcing even higher taxes to support the welfare state?
It appears to me that the Obama tax plan will cause an out of control downward spiral in the U.S. economy, stagnating business growth and the creation of jobs. Please, let's not allow that to happen.
1 comment:
Although most more intelligent Americans have figured out exactly what you did the problem is there are more people that will get that welfare check than businesses that will be hurt. Those people could care less about the rise in unemployment right now they just want that money in their pocket. The economy has been in worse shape it is just that more people have over spent their ability to make the payments. We should stop worrying about corporate greed and worry more about the greed of people who don't have the money to pay back their personal debt. That is why we are in such bad shape. People getting mortgages they can not afford and buying things on credit cards they can't afford. I say do away with ALL credit cards and make people save for the thing s they want like it used to be in the old days.
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