{"id":35826,"date":"2010-07-07T01:01:01","date_gmt":"2011-05-19T00:50:16","guid":{"rendered":""},"modified":"2011-05-19T00:50:16","modified_gmt":"2011-05-19T00:50:16","slug":"no_economic_growth_on_horizon_just_massive_obama_tax_increases","status":"publish","type":"post","link":"https:\/\/www.rushlimbaugh.com\/daily\/2010\/07\/07\/no_economic_growth_on_horizon_just_massive_obama_tax_increases\/","title":{"rendered":"No Economic Growth on Horizon, Just Massive Obama Tax Increases"},"content":{"rendered":"
\n

RUSH: Here\u2019s Obama. Another speech on the economy today at the White House. The president talking about the economy and jobs. It\u2019s nothing new. We\u2019ve heard it since 2008.<\/p>\n

OBAMA: Growth won\u2019t come from an economy where prosperity is based on fleeting bubbles of consumption, of debt. You can\u2019t rely on paper gains. We\u2019ve seen where that led us and we\u2019re not going back. If we want to once again approach full employment and fuel real economic growth, then we need an end to the policies that got us here. We need to lay a new and stronger foundation on which businesses can thrive and create jobs and rising incomes.<\/p>\n

RUSH: (sigh) Uh, well, it seems to me, Mr. President, that we have already laid this ‘new stronger foundation,\u2019 yours, and it\u2019s a disaster. We\u2019re not going back? We\u2019re gonna fuel real economic growth? We need to end the policies that got us here? You ended those policies a long time ago, Mr. President. The ‘policies that got us here\u2019 are yours, and you haven\u2019t ended your policies. Mr. Obama\u2019s policies are the reason we are where we are economically. Let me remind you, I had this information last week. ‘It is about ‘Six Months Until the Largest Tax Increases in History — In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. These will all expire on January 1, 2011.\u2019 Now, you keep all that in mind when you hear what I\u2019m going to say. <\/p>\n

You keep in mind Obama saying, ‘We need to lay a new and stronger foundation on which businesses can thrive and create jobs,\u2019 and you tell me if the tax increases that are gonna hit in six months will create an atmosphere or a stronger foundation on which businesses can thrive and create jobs and rising incomes. I don\u2019t know what credibility he\u2019s got on economic growth. I don\u2019t know where in the world he got it. I don\u2019t know why he has any credibility at all when he speaks on the economy other than he\u2019s the president. He has no credibility. Personal income tax rates will rise. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed). The lowest rate will rise from 10 to 15 percent. All the rates in between will also rise. Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates.<\/p>\n

‘Personal income tax will rise. The 10% bracket rises to an expanded 15%. The 25% bracket rises to 28%. The 28% bracket rises to 31%. The 33% bracket rises to 36% The 35% bracket rises to 39.6%. Higher taxes on marriage and family. The ‘marriage penalty\u2019 (narrower tax brackets for married couples) will return from the first dollar of income. The child tax credit will be cut in half from $1000 to $500 per [crumb cruncher]. The standard deduction will no longer be doubled for married couples relative to the single level. The dependent care and adoption tax credits will be cut.\u2019 All this while Obama lays a ‘stronger foundation\u2019 on which businesses can thrive and create jobs and rising incomes. <\/p>\n

The Death Tax will resume. ‘This year, there is no death tax. For those dying on or after January 1, 2011, there is a 55 percent top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones. Higher tax rates on savers and investors. The capital gains tax will rise from 15 percent this year to 20 percent in [six months]. The dividends tax will rise from 15 percent this year to 39.6 percent in [six months]. These rates will rise another 3.8 percent in 2013.\u2019 Then the ‘second wave\u2019 of taxes to hit will be those attached to Obamacare while we are ‘laying a new and stronger foundation on which businesses can thrive and create jobs and rising incomes.\u2019 <\/p>\n

‘The ‘Medicine Cabinet Tax.\u2019 Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines. … The ‘Special Needs Kids Tax\u2019 This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500. (Currently, there is no federal government limit.) There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. <\/p>\n

‘Under tax rules, FSA dollars can be used to pay for this type of special needs education,\u2019 but no more, starting in six months. Then there\u2019s ‘The HSA Withdrawal Tax Hike. This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.\u2019 Then there\u2019s a ‘Third Wave: The Alternative Minimum Tax … will ensnare over 28 million families, up from 4 million last year. … Small business expensing will be slashed and 50% expensing will disappear.\u2019 All the while we are ‘laying a new and stronger foundation on which businesses can thrive and create jobs.\u2019 So the money saved from depreciation and expenses will now go to the federal government in the form of higher taxes, leaving less money in the business to hire new employees or offer benefits and salary increases to existing employees. <\/p>\n

In fact, ‘Taxes will be raised on all types of businesses. There are literally scores of tax hikes on business that will take place. The biggest is the loss of the ‘research and experimentation tax credit,\u2019 but there are many, many others. Combining high marginal tax rates with the loss of this tax relief will cost jobs\u2019 while we are ‘laying a new and stronger foundation on which businesses can thrive and create jobs.\u2019 So basically what we have here is President Obama just lying again as he has been since 2008. On top of all of those taxes that I just mentioned we\u2019re going to get the VAT tax, the value-added tax, like they have in Europe. We might even get a net worth tax. They might pass the first-ever-in-history wealth tax. (interruption) Well, I am saying it like it\u2019s a fait accompli because that\u2019s what this administration intends. <\/p>\n

Of course, it will not be Obama who recommends it. It will be Erskine Bowles and Alan Simpson and their commission which will recommend it. Obama will say, ‘Well, we didn\u2019t abandon the policies that got us here soon enough. We gotta pay the piper now, and the Republicans have been talking about reducing the deficit and paying down the debt, and the only way we can do this is going to have these new taxes, the VAT tax, a net worth tax like they have in Europe.\u2019 That\u2019s a tax on one\u2019s wealth. After all the other taxes have been paid — after income taxes, after the new capital gains tax, after all of these other taxes — there will be a net worth tax, and it will be attached to people of $250,000 or more. <\/p>\n

It\u2019ll start small like a half a percent or a percent or whatever, and it will keep building and building and building, and this is all part of ensuring that nobody accumulates wealth anymore in this country. That\u2019s where we\u2019re headed. Fait accompli? Maybe not entirely. But unless the Republicans start talking about growth, economic growth and pointing out that Obama\u2019s killing it, and saying that in no uncertain terms… Yeah, you can talk about deficits and debt. People get that. You don\u2019t need to keep hammering that nail because it\u2019s in the coffin. People already know that. Economic growth has to be the policy. Economic growth has to be the answer to what we\u2019re having now, and none — none, absolutely none — of any of Obama\u2019s policies will lead to any economic growth in the private sector by design. It\u2019s not enough just to say, ‘Well, we gotta wait \u2019til this guy is out of office.\u2019 If we\u2019re gonna make an effort to win the House and perhaps the Senate, you\u2019d better be prepared to use the power that we acquire. <\/p>\n

I\u2019m a little long. Take a break, come back, get more of your phone calls. There\u2019s still three more sound bites of Obama\u2019s economic speech. You\u2019ve heard it all before. The man ought have zero credibility on anything he says regarding economics. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Now, here\u2019s another interesting tax increase that is effectively a tax increase coming in six months. ‘Charitable contributions from IRAs are no longer going to be allowed. Under current law, a retired person with an IRA can contribute up to $100,000 per year directly to a charity from their IRA.\u2019 They get the deduction; the charity benefits. This contribution counts toward an annual required minimum distribution, but this ability will be canceled, this feature will be canceled January 1st of 2011. One more Obama sound bite. This is from this morning in Washington, as the president, who has destroyed the US private sector, speaks about it.<\/p>\n

OBAMA: Some might argue that government has no role to play at all in our economy.<\/p>\n

RUSH: Who says that? <\/p>\n

OBAMA: Everybody in this room understands that the free market depends on a government that sets clear rules that ensure fair and honest competition, that lives within its means, that invests in certain things that the private sector can\u2019t on its own. In the absence of sound oversight, responsible businesses are forced to compete against unscrupulous and underhanded businesses who are unencumbered by any restrictions on activities that might harm the environment or take advantage of middle-class families, or threaten to bring down the entire financial system.<\/p>\n

RUSH: I don\u2019t know where to start on this. You have an indictment of everybody in the private sector as a bunch of cheats, underhanded and unscrupulous, responsible businesses are forced to compete against them. Who is it that\u2019s unencumbered by any restriction? The government. His regime is what is unencumbered by any restriction. His regime is the biggest stumbling block to private sector growth that it has ever been. The US government has never been the obstacle that it is today. The US government has never, ever been as big an obstacle to prosperity as it is today, and to listen to this pap is maddening, pure maddening. In France, the wealth tax, by the way, 1.8% of net assets. It is called the solidarity tax on wealth. All your assets, your net assets — meaning, after you\u2019ve paid all your taxes — what you\u2019re left with, there\u2019s a 1.8% tax on that. It\u2019s a tax on wealth every year, which we don\u2019t have in this country. <\/p>\n

We\u2019ve never had a tax on wealth. The income tax, by design, is to prevent the acquisition of wealth, to certain limits. The income tax, the rising marginal rates, leaving you with less disposable income, that\u2019s one of its purposes. It\u2019s not primary to raise revenue. If it were to raise revenue, they would lower tax rates. That works every time it\u2019s tried. It\u2019s about control, it\u2019s about loss of liberty, it\u2019s about making as many people as possible dependent on government, not just for their needs, but also for their wants, \u2019cause people aren\u2019t going to have the disposable income to handle all of that, and so you will vote for the party which provides those things for you and that\u2019s what FDR and the Democrats have been setting up and executing for the last 50 years.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: And in case you didn\u2019t hear, in case you didn\u2019t hear Obama the first time or the second time, in case you didn\u2019t hear Geithner the first time or second time, he said it, Obama did, again just this morning.<\/p>\n

OBAMA: As I told other leaders of the G20, after years of taking on too much debt, Americans will no longer borrow and buy the world\u2019s way to lasting prosperity. We alone cannot be the engines of economic growth. Furthermore, a strong and durable recovery requires that countries not have an undue advantage.<\/p>\n

RUSH: What do those two have to do with one another? How do we have an undue advantage if we\u2019re going into hock, as he says? Anyway, that\u2019s your president, folks, that\u2019s your future. We\u2019re no longer going to be a leader in anything. We\u2019re just a bunch of average ho-hummers.<\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: Here\u2019s Obama. Another speech on the economy today at the White House. The president talking about the economy and jobs. It\u2019s nothing new. We\u2019ve heard it since 2008. OBAMA: Growth won\u2019t come from an economy where prosperity is based on fleeting bubbles of consumption, of debt. You can\u2019t rely on paper gains. 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