Spreading the Wealth Around

A lot of people are noting this exchange between Barack Obama and a plumber who has figured out that under an Obama administration, his taxes will be increased. Obama explains that he has nothing against the plumber personally, but wants to “spread the wealth around”:

Spreading the wealth around is, in fact, the essence of Obama’s tax plan. It isn’t really a tax plan; rather, it’s a tax and welfare plan. Obama likes to say that he will cut taxes for 95% of Americans. But 40% or more don’t pay any federal income taxes, so how can their taxes be “cut”? The Wall Street Journal explains:

For the Obama Democrats, a tax cut is no longer letting you keep more of what you earn. In their lexicon, a tax cut includes tens of billions of dollars in government handouts that are disguised by the phrase “tax credit.” …

The Tax Foundation estimates that under the Obama plan 63 million Americans, or 44% of all tax filers, would have no income tax liability and most of those would get a check from the IRS each year. The Heritage Foundation’s Center for Data Analysis estimates that by 2011, under the Obama plan, an additional 10 million filers would pay zero taxes while cashing checks from the IRS.

The total annual expenditures on refundable “tax credits” would rise over the next 10 years by $647 billion to $1.054 trillion, according to the Tax Policy Center. This means that the tax-credit welfare state would soon cost four times actual cash welfare.The Tax Foundation estimates that under the Obama plan 63 million Americans, or 44% of all tax filers, would have no income tax liability and most of those would get a check from the IRS each year. The Heritage Foundation’s Center for Data Analysis estimates that by 2011, under the Obama plan, an additional 10 million filers would pay zero taxes while cashing checks from the IRS.

The total annual expenditures on refundable “tax credits” would rise over the next 10 years by $647 billion to $1.054 trillion, according to the Tax Policy Center. This means that the tax-credit welfare state would soon cost four times actual cash welfare.

Obama’s “tax” plan would in effect undo the greatest accomplishment of the Republican Congress, welfare reform. It would reinstate the federal welfare system that we thought was gone for good with the repeal of AFDC. Not only a welfare system: a welfare system that would rapidly grow from more than a half trillion to over a trillion dollars a year.

That plumber is right to be nervous. I wonder, though, how many voters know that Barack Obama proposes to put the federal government back in the welfare business to the tune of hundreds of billions of dollars.

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