Last week, Democrat Party presidential hopeful Barack Obama began his discussion of economic issues in the state of Oregon with the news media and workers at Verneir Software & Technology in Beaverton, Oregon. A key point Obama made was his high-tax platform that he claimed would help Oregon's economy. However, according to conservative strategist Mike Baker, this is the same old "tax and spend," big-government plan that's been the bedrock of American socialism for years.
"Obama is a slick politician. He takes failed socialist programs and renames them and attempts to dupe people into believing this is cutting-edge economics. It's just Marxism with a new facade," claims Baker.
During his speech in Beaverton, Obama proposed a laundry list of tax hikes, but he failed to mention that Oregonians already carry a huge tax burden. For example, Senator Obama called for higher income taxes on the wealthy (people making $100,000 per year and more), higher Social Security taxes, higher corporate taxes and what he called "an investment tax."
"Liberals and Socialists will seldom use the word 'tax.' They prefer using euphemisms such as 'investment' or 'contribution' when they really mean mandatory taxation," said economist Warren Kelly of New York University.
"No successful economic system has ever taxed itself into prosperity," said Professor Kelly.
Part of Obama's plan for Oregon and other states is massive new domestic spending, and a healthcare plan that perhaps could be the next step to a full-scale, single-payer system. Is that what most Americans want, someone who will fulfill a Democratic policy wish list?" Yes, according to Sen. Obama and his followers.
"Obama sees himself as a modern day Robin Hood," claims Sid Francis, a former head of the African-American police organization in New York City, The Guardians.
"He's telling his followers that he's prepared to tax the supposed wealthiest Americans and turn the money over to his constituents,' said Det. Francis.
"Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2008, Oregon tax payers had to work until April 16 to pay their total tax bill, ranking it the 32nd highest in the nation," said economist Warren Kelly.
"If Obama's elected President and gets his way with a Democrat-run Senate and House of Representatives, Tax Freedom Day for Oregonians will quite possibly be May 15 of each year," said Kelly.
Kelly claims that Sen. Obama supports nearly doubling the Capital Gains tax rate, which is major tax hike for many Oregon residents.
CNBC's Maria Bartiromo told viewers that "He [Obama] wants to raise taxes. Right now, as you know, the cap gains tax is at 15%. He has yet to give us a specific number, how high he wants that number to go. He has said, and he told me today, that he won't go above 28%. So we are talking about the possibility of a doubling in the capital gains tax." (CNBC's "Closing Bell," 3/27/08)
Obama rationalized his tax hike when he said that raising the Capital Gains tax wouldn't "Distort ... Economic Decision Making."
He went on to say, "I think that we can have a capital gains rate that is higher than 15 percent. If it -- and if it, you know -- when I talk to people like Warren Buffet or others and I ask them, you know, what's -- how much of a difference is it going to be if it's 20 or 25 percent, they say, look, if it's within that range then it's not going to distort, I think, economic decision making."
Advertisement
"In 2005, the average Capital Gains and dividend income reported per tax return in Oregon was $4,837. On average, it accounted for 9.82 percent of adjusted gross income," said Mike Baker.
"In the name of 'soaking the rich,' Obama is prepared to financially hurt working families who may come into large sums of cash for a variety of reasons," added Baker.
161,412 Oregon taxpayers with adjusted gross incomes of less than $50,000 reported capital gains and as a result were hit with a huge tax bill. In addition, according to economists, Obama's opposition to the so-called "gas tax holiday" ignores the needs of Oregon families.
"He quite simply is opposed to any kind of tax relief while he ignores the needs of Oregon families," said Professor Kelly.
During an appearance at a community college in the Philadelphia suburbs, Obama rejected a tax holiday as bad economic policy.
"I've said I think John McCain's proposal for a three-month tax holiday is a bad idea," Obama said, warning consumers that any price cut would be short lived before costs spike back."
As Of May 9, 2008, the average price for a gallon of regular unleaded-gasoline in Oregon was well over $3.70.
Oregon uses a substantial amount of natural gas for electricity and home heating: Natural gas accounts for about one-third of Oregon's electricity generation.
Obama is Wrong for Oregon's Small Businesses
Political observers believe that small businesses are vital to Oregon's economy. According to a report by the Small Business Administration, in 2006 "Oregon had an estimated total of 350,500 small businesses. In fact, over 97 percent of Oregon's employer firms are small businesses.
"Employer firms totaled 110,900 in 2006, up 3.8 percent from the previous year. Of this total, an estimated 97.8 percent, or 108,500 were small."
"Quite simply, a President Barack Obama payroll tax hike would be a disaster of Oregon's small businesses," said Professor Kelly.
Also, Obama supports lifting the earnings cap on payroll taxes. Obama told Democrats that he believes "lifting the cap is probably going to be the best option."
"Lost in Obama's calculations is that many of the people who would be affected by eliminating the earnings cap are small-business owners who employ more than half the private-sector work force and create two of every three new jobs in this country," said Sid Francis, who owns a private security firm -- FLT Security Systems -- in New York.
"Hearing Obama's plans for Oregon should scare workers and business owners in the other 49 states. He's a big-government socialist who is trying to pull a fast one on American voters," said Francis.