stephanie
10-27-2008, 10:28 PM
By INVESTOR'S BUSINESS DAILY | Posted Monday, August 18, 2008 4:20 PM PT
Election '08: Barack Obama's economic blueprint sounds like one his communist father tried to foist on Kenya 40 years ago, with massive taxes and succor shrouded as "investments."
As a Nairobi bureaucrat, Barack Hussein Obama Sr. advised the pro-Western Kenyan government there to "redistribute" income through higher taxes. He also demonized corporations and called for massive government "investment" in social programs.
Barack Obama Sr., who died in 1982 at age 46 in a Kenya car crash.
Writing in a 1965 scholarly paper, Obama's late father slammed the administration of then-President Jomo Kenyatta for moving the Third World country away from socialism toward capitalism. He chafed at the idea of relying on private investors — who earn "dividends" on their venture capital — to develop the country's fledgling economy.
"What is more important is to find means by which we can redistribute our economic gains to the benefit of all," said the senior Obama, a Harvard-educated economist. "This is the government's obligation." The "means" he had in mind were confiscatory taxes on a scale that redefines the term "progressive taxation."
"Theoretically," he wrote, "there is nothing that can stop the government from taxing 100% of income so long as the people get benefits from the government commensurate with their income which is taxed."
Therefore, he added, "I do not see why the government cannot tax those who have more and syphon some of these revenues into savings which can be utilized in investment for future development."
As Obama's father saw it, taxes couldn't be high enough, so long as the collective benefited. "Certainly there is no limit to taxation if the benefits derived from public services by society measure up to the cost in taxation which they have to pay," he said. "It is a fallacy to say that there is this limit, and it is a fallacy to rely mainly on individual free enterprise to get the savings."
His son is also pushing massive taxes and "investments" in social programs — at the expense of free enterprise. Sen. Obama wants to raise the top marginal income-tax rate to at least 39%, while increasing Social Security taxes on those with higher incomes by completely removing the payroll cap. That means many entrepreneurs would be paying 12.4% (6.2% on employer and 6.2% on employee) on Social Security payroll taxes alone, plus the 2.9% on Medicare taxes, for a total federal tax rate of 54%.
In addition, Obama wants to jack up the capital-gains tax rate and reinstate the death tax.
Echoing his father, he argues that the government should impose "tax laws that restore some balance to the distribution of the nation's wealth."
And likewise, he asserts that the nation's wealth ought to be rechanneled by government into "investments" in the economy and welfare programs that create "a new American social compact."
"We can only compete if our government makes the investments that give us a fighting chance" in the global economy, the Democrat presidential hopeful said in his 2006 book, "The Audacity of Hope." "And if we know that our families have some net beneath which they cannot fall."
"Training must be expanded," his father proposed as one of his government "investments." Likewise, Sen. Obama wants to "invest" billions more in federal jobs retraining.
read the rest..
http://www.ibdeditorials.com/IBDArticles.aspx?id=303952499910291
Election '08: Barack Obama's economic blueprint sounds like one his communist father tried to foist on Kenya 40 years ago, with massive taxes and succor shrouded as "investments."
As a Nairobi bureaucrat, Barack Hussein Obama Sr. advised the pro-Western Kenyan government there to "redistribute" income through higher taxes. He also demonized corporations and called for massive government "investment" in social programs.
Barack Obama Sr., who died in 1982 at age 46 in a Kenya car crash.
Writing in a 1965 scholarly paper, Obama's late father slammed the administration of then-President Jomo Kenyatta for moving the Third World country away from socialism toward capitalism. He chafed at the idea of relying on private investors — who earn "dividends" on their venture capital — to develop the country's fledgling economy.
"What is more important is to find means by which we can redistribute our economic gains to the benefit of all," said the senior Obama, a Harvard-educated economist. "This is the government's obligation." The "means" he had in mind were confiscatory taxes on a scale that redefines the term "progressive taxation."
"Theoretically," he wrote, "there is nothing that can stop the government from taxing 100% of income so long as the people get benefits from the government commensurate with their income which is taxed."
Therefore, he added, "I do not see why the government cannot tax those who have more and syphon some of these revenues into savings which can be utilized in investment for future development."
As Obama's father saw it, taxes couldn't be high enough, so long as the collective benefited. "Certainly there is no limit to taxation if the benefits derived from public services by society measure up to the cost in taxation which they have to pay," he said. "It is a fallacy to say that there is this limit, and it is a fallacy to rely mainly on individual free enterprise to get the savings."
His son is also pushing massive taxes and "investments" in social programs — at the expense of free enterprise. Sen. Obama wants to raise the top marginal income-tax rate to at least 39%, while increasing Social Security taxes on those with higher incomes by completely removing the payroll cap. That means many entrepreneurs would be paying 12.4% (6.2% on employer and 6.2% on employee) on Social Security payroll taxes alone, plus the 2.9% on Medicare taxes, for a total federal tax rate of 54%.
In addition, Obama wants to jack up the capital-gains tax rate and reinstate the death tax.
Echoing his father, he argues that the government should impose "tax laws that restore some balance to the distribution of the nation's wealth."
And likewise, he asserts that the nation's wealth ought to be rechanneled by government into "investments" in the economy and welfare programs that create "a new American social compact."
"We can only compete if our government makes the investments that give us a fighting chance" in the global economy, the Democrat presidential hopeful said in his 2006 book, "The Audacity of Hope." "And if we know that our families have some net beneath which they cannot fall."
"Training must be expanded," his father proposed as one of his government "investments." Likewise, Sen. Obama wants to "invest" billions more in federal jobs retraining.
read the rest..
http://www.ibdeditorials.com/IBDArticles.aspx?id=303952499910291