Cedric forwarded me a YouTube video from a Democratic Primary debate between Obama and Hillary. This is the essence of why any policy claims that Obama makes need to be seriously held in doubt:
To go against the hysterics from the poster of the video, I am willing to admit that Obama is not only human but a politician. If he were to acknowledge the truth of the situation then he would literally be calling himself a moron, which would undermine the whole “change you can believe in” mantra.
The true shame is the total lack of intellectual honesty, but even worse the political twisting. Remember, a very important point that I wish to get across about Obama is that he IS NOT anything more than a politician. The claims of “hope” and “change” are nothing more than high political savvy and an angle to get more votes.
What is so terrible about this video is that Charles Gibson outlines the EXACT truth of the relation of Capital Gains taxes and Tax Revenue raised. Obama plans to double the current Capital Gains Tax from 15% to 28%.
A fundamental, but not well known, Economic Law is Hauser’s Law. For several resources on it:
1. Original WSJ article: http://online.wsj.com/article/SB121124460502305693.html?mod=opinion_main_commentaries
2. Very insightful blog post from J.D. Tuccile: http://www.tuccille.com/blog/2008/05/hausers-law-laffer-curve-and-pissed-off.html
3. As well as a “slight” opposition article from Portfolio.com: http://www.portfolio.com/views/blogs/odd-numbers/2008/05/20/lying-with-charts-wsj-edition?rss=true (the essence of this article is highly debatable, and I will post on this later – link to be inserted in the future)
But Gibson’s explanation is quite sufficient for Barack to have understood the point of Hauser’s Law. If Capital Gains Taxes are lowered history proves that Tax Revenue increases, and if Capital Gains Taxes are increased then Tax Revenue falls.
Obama’s answers can be maddening at times, but require close scrutiny.
First he says that for the “purposes of fairness”, due to Hedge Fund managers and people who have earned $5 Billion from money made from Capital Gains, should not be paying a lower tax rate than their secretaries.
This is ok if taken alone. “Fairness” and “doing the right thing” is a fundamental belief of Democrats and is a noble Good Intention. Of course Tax Revenue will drop, there will be less money for the government, business growth will be stifled, and the economy will be hit hardest by trying to maintain “fairness”. But, on its own, if this is what Democrats believe in – Socialism – then I guess messing up the economy so that “rich people” have to pay the same taxes as “poor people” is reasonable.
Unfortunately, like the masterful politician that he is, Barack then has to of course play the other side of the coin. He states that “someone has to pay so that we can afford to pay for education and our national health care program.”
It is Barack’s ability to so easily and charismatically provide a contradictory answer to a very simple question that worries me the most.
To put Obama’s answers in a logical context without all the “feelings”:
1. Raise taxes for fairness which will lower tax revenue.
2. The country needs to raise tax revenue so that it can afford social programs.
These two statements are in DIRECT opposition to each other and therefore should not be taken seriously. Additionally, if Obama does raise Capital Gains Taxes for the purpose of “fairness” but additionally increases Social Programs, which therefore require more Tax Revenue, where does the burden fall?
The only conclusion that I can make from this is that Barack Obama has a complete and utter lack of economic understanding and unfortunately he will soon be President enacting these policies, and the person at the end of the shaft will be the American people.
