Urbin Report

Friday, February 27, 2009

Lies of the Obama cabal

Two big ones in a row.

First from the gaffmeister himself, Joe Biden. You can almost forgive him, because he has a long history of just saying wacky shit, but he is an official spokesman of our Dear Leader, so BHO should be keeping a leash on him.

Biden falsely claimed that Louisiana is loosing jobs a rate of 400 per day
. Of course, the actual truth is the opposite of what came out of Joe Biden's mouth. Louisiana is adding jobs, i.e. the unemployment rate is falling. Don't expect MSNBC (i.e. the "Obama network") to point out this obvious error of the Obama administration.

The next big lie came from our Dear Leader personally. BHO claims that he can jack the taxes of "wealthiest 2% of Americans" to pay for his massive socialist government spending. The Wall Street Journal points out that the numbers just don't add up.

Consider the IRS data for 2006, the most recent year that such tax data are available and a good year for the economy and "the wealthiest 2%." Roughly 3.8 million filers had adjusted gross incomes above $200,000 in 2006. (That's about 7% of all returns; the data aren't broken down at the $250,000 point.) These people paid about $522 billion in income taxes, or roughly 62% of all federal individual income receipts. The richest 1% -- about 1.65 million filers making above $388,806 -- paid some $408 billion, or 39.9% of all income tax revenues, while earning about 22% of all reported U.S. income.

Note that federal income taxes are already "progressive" with a 35% top marginal rate, and that Mr. Obama is (so far) proposing to raise it only to 39.6%, plus another two percentage points in hidden deduction phase-outs. He'd also raise capital gains and dividend rates, but those both yield far less revenue than the income tax. These combined increases won't come close to raising the hundreds of billions of dollars in revenue that Mr. Obama is going to need.
The bottom line is that Mr. Obama is selling the country on a 2% illusion. Unwinding the U.S. commitment in Iraq and allowing the Bush tax cuts to expire can't possibly pay for his agenda. Taxes on the not-so-rich will need to rise as well.

On that point, by the way, it's unclear why Mr. Obama thinks his climate-change scheme won't hit all Americans with higher taxes. Selling the right to emit greenhouse gases amounts to a steep new tax on most types of energy and, therefore, on all Americans who use energy.

The numbers just don't add up, and I'm betting that Team BHO knows it. They are just hoping that most Americans won't do the math until it is too late.