Pre-Election Economics 102: Of Taxes, Obamacare and Economy

In order to spare my readers a very long post, this is an overflow of info that didn't fit the topic in Pre-Election Economics 101. Here are some facts about America's current economy, new taxes, and Obamacare. 

I. The Blame Game:

President George W. Bush isn't to blame for everything. For example, the trouble with mortgage lending that led to the collapse of housing prices began escalating before his term. Even the liberal Time Magazine listed all these people ahead of Bush as responsible for the collapse: President Clinton, actions by Congress, consumers themselves (some who knowingly bought homes they couldn't afford) and bosses at big loan companies.

-During Bush's terms, unemployment had consistently fallen since 2003 and reached a low at 4.7% in Feb., 2006.

-The average gas price before the 2006 election was $1.50-2.00; When Democrats took control of Congress in 2006, it soared to $4.00 and hasn’t come down far since then.

 

-On September 4, 2012, the national debt surpassed $16 trillion for the first time in the nation's history. Under President Bush, the national debt grew by $4.89 trillion in eight years. But it's increased by another $5.38 trillion in President Obama's four years.

-It took President Obama just over 3.5 years to incur as much debt as 42 other American presidents combined.

II. Taxes:

The Congressional Budget Office (CBO) says ending Bush tax cuts and increases in taxes will dampen economic growth in the short term and cost a substantial amount in the long run.

Raising taxes is not the only way to lower deficits. Republican Governors all over the country and its islands have been lowering their state budget deficits without raising taxes, including Kasich of Ohio, Christie of New Jersey and Martinez of New Mexico. Governor Fortuno of Puerto Rico slashed taxes and his own salary to improve Puerto Rico's budget.

III. Taxes and Obamacare:

Don’t forget - the U.S. Supreme Court’s 5-4 decision that Obamacare is a Tax. Most people thought Justice Roberts' decision was bad - but it was good in this respect: It clarified Obamacare as a tax on the middle class; and unfortunate in this respect - it means the President's breaking his promise not to tax Middle America.
 
-66% of business owners say they will eliminate their healthcare choices and tell their employees to go on Obamacare because it will cost them so much money to keep other insurance plans (see the employer rules here).

-U.S. Senator John Thune, appearing on Fox News' On the Record told host Greta Van Susteren it will be so expensive for small businesses, that business owners will rather pay the $3,000 fine for not complying than cover their employees. This will throw everyone into Obamacare when people were promised there would be a choice.

-In fact, says the CBO for example, single Americans making less than $60,000 a year, and families of four with combined incomes of $123,000, will pay more than half of a new tax in Obamacare— $3.1 billion.

-Obamacare puts a 3.8% Medicare tax on home sales beginning January 1, 2013. There's a “high income threshold” but it's not fixed to account for inflation, so it will reach middle-class taxpayers who sell their homes if prices increase.

This new home sales tax is the first time the government will apply such a tax on unearned income specifically to help pay for something like ObamaCare. The National Association of Realtors called it “destructive,” “ill-advised” and predicts it will even hurt job creation.

IV. Economy and Employment:

Under Obama, the unemployment rate has remained above 8% for 40 straight months – the highest since the 1930’s, and it represents most of Obama’s time in office... But just today, it was announced that unemployment is now 7.8%. It “miraculously” fell below 8% only 1 month before the election, after President Obama’s whole first term above 8%, and only 2 days after President Obama was declared the loser of the first debate by even many“mainstream media.” That’s just weird, because…

For this same day, October 5, the Huffington Post – not a conservative publication – said that the real unemployment rate is 9.4% when you eliminate people who have stopped looking for jobs or collecting unemployment.

-The middle-American average household income in March, 2012 was down $4,300 from its average since Obama took office in January 2009. This means the median net worth of families plunged by 39% since 2009.

-The latest Bureau of Labor Statistics shows 780,000 more women out of work than in Jan. 2009.

-55% of small business owners say they would not start a business today, blaming President Obama's new restrictions on businesses.

Ask yourself this question: Are you and your loved ones better off than you were four years ago?