Obama Says “I won”….Who Lost????

In his press conference a few days ago his highness proclaimed he ad won. He quoted some mysterious poll (which no one could find) that 80% of Americans favored paying more taxes. SAY WHAT?

The man is so out of control that he is starting to believe his on oratory which really isn’t his but is written by speech writer 29 year old Jon Favreau. Everything the anointed one utters comes from the mouth of this 29 year old political science major who has never held a real job. Just like his boss. He has worked two presidential campaigns, Kerry’s and Obama’s so is batting .500. Not bad for an unemployed writer.

But his latest writing is so far off the mark that it will get his boss in one big pile of dung once the campaign really begins. Just think of it, 80% of the American public wanst to pay more taxes. I wonder what they pay this political junkie to write drivel like this?

Let’s look at the facts.

Keep in mind that Mr. Obama has already signed the largest tax increase since 1993. In case you forgot  Bill Clinton was in the white house then chasing Monica around the Oval Orifice.  While everyone focuses on the Bush tax rates that expire after 2012, other tax increases are already set to hit the economy thanks to the 2010 Affordable Care Act better known as Obamacare. As a refresher, here’s a non-exhaustive list of ObamaCare’s tax increases:

• Starting in 2013, the bill adds an additional 0.9% to the 2.9% Medicare tax for singles who earn more than $200,000 and couples making more than $250,000. Now let’s face most of us don’t make $250K a year unless we own a business and then $250K of AGI is easy to come by. Hence every shop owner in America will get screwed by this one.

• For the first time, the bill also applies Medicare’s 2.9% payroll tax rate to investment income, including dividends, interest income and capital gains. Added to the 0.9% payroll surcharge, that means a 3.8-percentage point tax hike on “the rich.” Rich is defined above, those poor slbs that own businesses.  Oh, and these new taxes aren’t indexed for inflation, so many middle-class families will soon be considered rich and pay the surcharge as their incomes rise past $250,000 due to tax-bracket creep. Remember how the Alternative Minimum Tax was supposed to apply only to a handful of millionaires? What a freaking disaster that was/is.

Taxpayer cost over 10 years: $210 billion.

• Also starting in 2013 is a 2.3% excise tax on medical device manufacturers and importers. That’s estimated to raise $20 billion.
• Already underway this year is the new annual fee on “branded” drug makers and importers, which will raise $27 billion. And don’t you think they are not passing this on to the end consumer. Naaawwww.
• Another $15.2 billion will come from raising the floor on allowable medical deductions to 10% of adjusted gross income from 7.5%. This sneaky tax hits ALL OF US! We just lost 2.5% of our allowable medical deductions.
• Starting in 2018, the bill imposes a whopping 40% “excise tax” on high-cost health insurance plans. Though it only applies to two years in the 2010-2019 window of ObamaCare’s original budget score, this tax would still raise $32 billion—and much more in future years.
• And don’t forget a new annual fee on health insurance providers starting in 2014 and estimated to raise $60 billion. This tax, like many others on this list, will be passed along to consumers in higher health-care costs.
There are numerous other new taxes in the bill, all adding up to some $438 billion in new revenue over 10 years. But even that is understated because by 2019 the annual revenue increase is nearly $90 billion, or $900 billion in the 10 years after that. Yet Mr. Obama wants to add another $1 trillion in new taxes on top of this.

So I ask the rhetorical question once again. Who won? What did he win? All I know is WE LOST, big time.

 

Hidden Taxes and the Airline Industry

Many of you out there support the ideals of the TEA party and some are not so sure. But do all of you know what the TEA party really stands for? It has nothing to do with the ubiquitous drink at all and only has a casual relationship with the original Tea Party that occurred in Boston Harbor. American patriots were protesting King George’s tax on their beverage of choice, tea. They didn’t have Starbuck’s back then. Of course this was all before Lexington and Concord but was the first manifestation of the American Revolution.

 

Today’s TEA Party stands for “TAXED ENOUGH ALREADY”. Americans are fed up with the level of taxation imposed at all levels of government but in particular, the Federal government. Our current administration feels we should tax the rich and defines rich as anyone making more than $250,000 a year. The inherent flaw in that argument is anyone who owns any kind of business, be it small, medium or large, exceeds this arbitrary limit. And coupled with the stagflation and stagnant economy the current regime has placed us in, any tax increase to the business sector will be a death knell to what’s left of our economy.

 

But, that is not the purpose of this writing. I want to alert you of the hidden taxes that have been quietly imposed by the Federal bureaucracy while you were out trying to earn a living for you and your family.

 

We all are aware of the so-called “sin” taxes. These are taxes levied on alcohol, tobacco and gambling. The intent is to make it painful for the average Joe to engage in such activity as it costs more to do. I recall back in the early sixties when I was in college, a pack of Lucky Strike cigarettes cost twenty five cents out of  machine. In some locales today that same pack costs eight dollars or more. Now I am not condoning smoking as I don’t smoke. Just making a point.

 

Did you know that airline tickets are also subject to “sin” taxes? Say what? Airline tickets? No way! Read on.

 

In 1972 the federal tax on a $300 round trip ticket was $22.00. Today that same $300 ticket has a tax of $61.00 added to it. This does not include the security surcharges. Government imposed taxes and fees on US airlines  yield more than $16 Billion a year. Twenty years ago it was $3.7 Billion. Aviation tax levies have been on autopilot rising steadily and without interruption for years. In the last ten years alone, collections of US taxes and fees on the aviation industry have risen 38%. And guess who is paying all this tax? You and I every time we book an airline flight.

 

Taxes increase the cost of everything transported by air—from perishable food to overnight parcels. They also make travel more expensive for vacationers and business travelers. Such added costs make President Obama’s goal of doubling U.S. exports in five years impossible. Much of what Americans manufacture, especially high value-added goods and services, is transported overseas by air.

 

Taxes stifle the global competitiveness of U.S. airlines, which are so vital to our nation’s growth. By making air service more expensive, they lead to fewer business trips, less tourism and higher shipping costs. The trend of over-taxation is counterproductive—a punitive burden on airline customers and the overall economy. These are resources that could be better spent making air transportation more efficient and putting more people to work.

 

Aviation is central to America’s global competitiveness and a key component of U.S. productivity. The Federal Aviation Administration estimates that commercial aviation drives $1.2 trillion in economic activity and more than 5% of U.S. gross domestic product each year—and is responsible for 11 million jobs. Every 100 airline jobs support about 388 jobs outside of the industry.

 

Congress struggles to find ways to reduce the federal budget deficit. Indeed, Congress and the White House should go further by examining and then ending the job-killing tax burden. New taxes on commercial aviation can and must be rejected out of hand. It’s time to give our airlines a chance to compete globally, boost the economy, and create jobs. We all benefit when that happens.

 

Special thanks to Mr. Nick Calio for the above facts and figures. He is the CEO of the Air Transport Association of America.