Monday, April 26, 2010

Hidden Taxes

The Obama administration is making a big deal out of their claim that 97% of Americans received a tax cut since he took office. On the surface, this claim is a bold-faced lie. How can 97% receive a tax cut when nearly 50% of Americans do not pay any federal income tax at all? I am sure he meant to say 97% of all Americans who pay taxes received a tax cut. But his unfortunate truth is that sayin git that way reminds the taxing paying half that they are also paying the bill for the other half. Not a good thought to place in the most productive American's mind.

While it is true that most of us who pay federal income tax did see a minuscule decrease, all Americans are seeing increases in local taxes and fees. These taxes are increased to pay for the unfunded mandates of the federal government. In Kansas, the economic downturn coupled with reductions in federal spending for education has left a budget deficit of nearly $500 million. The state is looking for new revenue streams, and has decided to pursue a sugary drink tax. It seems that Coke and Pepsi are the new sins that are begging for a tax. The proposed tax rate is 2 cents per ounce. A 12 ounce can will increase by a quarter, and a case could rise by almost $6.

The irrational logic coming from the Governor's office is that sugar promotes obesity, which is bad and unhealthy. So it is only logical that it should be taxed. Never mind that none of the tax revenue will go toward promoting health or reducing obesity. Instead, it will go into the general fund to be spent and squandered as politicians do. Another missing tidbit of information is whether diet soda will be taxed. If you believe their sugar logic, diet soda should be excluded. Other states that have implemented this tax did not exclude diet drinks, and becomes just another hole in their logic.

And it is only the very tip of the iceberg. As health care legislation slowly goes into effect, costs will be reduced by cutting the amounts paid to providers by sanctioned plans. Doctors and hospitals will be forced to make their losses up from other sources, just like they do today with Medicare. And then comes Cap and Trade. New carbon taxes levied on energy producers will be passed on the consumers. Virtually every good and service will need to charge more to cover increased energy costs.

The net result is the Obama administration has formed a plan that if enacted, will become the most punitive tax ever levied on Americans, even those in the low income range and least able to pay. And many don't even know it is coming based on their blind allegiance to him.

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