President Barack Obama this morning addressed the press corps on a variety of issues ranging from the economy to international affairs.
The President elaborated on the Congressional Democrats and the White House achievements thus far.
President Obama also laid out the economic progressive tax structure with permanent tax cuts for the middle class and those earning up to $250,000 income.
On the previous administration’s tax cuts expiration for the top 2% wealthy individuals earning above $250,000 - the economic strategy would benefit the higher income groups and not hurt them as claimed by the critics.
As the President explained - the first $250,000 earnings would qualify for the permanent tax cuts and only the remaining income would be subject to the applicable tax. Essentially 98% taxpayers might qualify for the permanent tax cut creating a vast middle income that would expedite economic recovery.
With a finger on the pulse of the economy, the recent reports on employment, housing, financial and stock market post stimulus funding worth $787 billion approved by Congress in February 2009, has drawn both praise and criticism from different quarters. The praise is always welcome and encouraging for any administration and the Obama administration is no exception to the rule, particularly when they are relentlessly engaged in stabilizing the economy as the top priority.
Whereas, the criticism targeted at the President is no revelation considering the partisan Washington atmosphere. The results thus far, indicate the current national unemployment rate at 9.2% against 8% in the pre-approval stimulus package forecast. Further, the reports reveal the economy shed 1.6 million jobs with the White House claiming 150,000 jobs saved since...
Sacramento is struggling with the fiscal budget crisis and dependent on California voters to help the legislators finalize on the tax hikes and spending cuts through ballot measures scheduled on Tuesday, May 19, 2009.
The latest assault weapon for Senator John McCain and Gov. Sarah Palin against their opponent Senator Barack Obama is the “Socialist/Marxist/Robin Hood” tag on him.
Such rhetoric and false propaganda is to create doubts in the minds of entrepreneurs against Senator Obama.
The distortion of Senator Obama’s policy leading businesses to believe that,
“In Taxing 1% of the population in the 40% tax bracket while shifting the tax burden to the top 10% percent with 70% of tax exacerbates the entities from active participation in the economic growth.”
The reason behind similar branding is the fair tax proposal presented by Senator Obama to alleviate the socioeconomic problems that has currently widened the canyon between rich and poor in our country.
Thus slowly but gradually eliminating the middle class in our society.
Senator Barack Obama’s tax policy is based on relieving all citizens including small and medium sized businesses earning less than or equal to gross income of $250,000 per annum from any tax hikes to offset expenditure.
This strategy creates financial liquidity among households and businesses alike that is desperately required to stimulate the ailing economy.
By exempting the average households from any tax increases, the consumer spending is generated that will benefit the Retail economy which in turn will permeate throughout the economic spectrum.
The strengthening of the Retail economy will boost the manufacturing, service industry… reaching all the way to the top of the corporate growth.
The Corporate growth means investment prospects for both private and public sectors resulting in healthier and consistent stock market performance that has been highly volatile recently.
It is simple economics.
Supply and demand forces determine a free market system.
Unless, there is a demand for any particular goods or services the supply chain link cannot remain in force.
Simultaneously, the demand can be a catalyst in the process only through affordable consumer spending.
This is where the small and medium sized businesses come into play with the tax breaks from Senator Obama’s policy.
It is noteworthy that small and medium sized businesses deal with wholesale industries for raw materials and other items ultimately owned by major corporations in a market economy.
There are valid reasons to embrace the market economy worldwide.
A.Induces competition apart from enrichment of ideas
B.Competition enables choices in quality and price
C.Controls inflation or deflation
Therefore, the retail consumers benefit from the market economy that facilitates all small, medium and large players in competing with one another effectively for common good.
All of the above factors directly and indirectly influence the fiscal, monetary and economic policies in a Capital economy.
Briefly, the cash flow offered through tax relief by Senator Obama to a substantial group of taxpayers who are also the consumers trigger consumer spending and exponentially elevate the economic status among various groups in the society.
It also eventually contributes to the wealth accumulation by the top ten percent in the society whose welfare alone is a major concern for McCain/Palin candidacy.
Ironically, the McCain/Palin candidacy in their zeal to own Capitalism as the trademark, fail to recognize the importance of fundamental growth in the lower and middle income groups vital for the survival of small businesses and retail industries, the structural components of a successful Capital economy.
Senator McCain’s tax policy to freeze tax increases across the board by asserting that the Bush administration’s permanent tax cuts to wealthy individuals and Corporations would miraculously revive the economy is a fantasy beyond reason.
It is worth remembering for McCain/Palin campaign that the current Bush administration, as their supporter will depart shortly leaving the nation with multi-trillion dollar debt, on-going wars in Iraq and Afghanistan requiring constant capital injection, declining dollar and hosts of economic commitments willfully neglected in the past eight years.
The undecided/swing voters in every battleground state must realize that there are no precise solutions from McCain/Palin candidacy to resolve the humongous challenges confronting our nation in the absence of any meaningful tax policy.
Senator McCain’s policy to create new jobs as economic solutions again fails to meet the criteria of capital requirement in the present economy with severe financial liquidity crisis.
In fact, the recent economic strategy to bankroll the corrupt and failed corporations with the taxpayers funds, along with the economic stimulus package by the Bush administration fits the profile of the political stigma - “Socialism/Marxism” except,
Here, the beneficiaries are the Corporations and their wealthiest CEO’s rather than the taxpayers i.e. the average citizens.
Since, the same political party represents the Bush administration and McCain/Palin candidacy, it would be more appropriate to assign the factoid to the respective contenders.
Fact Check: In a progressive tax structure, Senator Obama’s policy to exempt the vast majority of taxpayers/consumers from tax increase would,
1.Promote economic status as highlighted above…
2.Ultimately, create a fair system of sharing the economic burden by all rather than only by the affluent ones.
Such farsighted and permanent solutions to persisting economic problems is in direct contradiction to the myth and misnomer cast by McCain/Palin doctrine against Senator Barack Obama to win the election.
Socialism/Marxism may well be the nemesis to Capitalism,
Capitalism cannot thrive without consumerism – That is the fact.
