General Obama declares war on deficit and the wealthy.

A short week after signing into law the biggest spending bill in the history of the United States, Obama has turned his attention on cutting our deficits. Akin to an alcoholic saying he will no longer drink whiskey, while doubling up on vodka and beer.

His first line of business is to cut spending in Afghanistan & Iraq, ironic of course considering he just signed the deployment of 17,000 additional troops to Afghanistan. What exactly does he plan to cut? Going to send the soldiers over there without rifles? Russians did so in battle of Stalingrad, so there is SOME precedent. Withdrawal from Iraq has been promised to take place within 16 months, but rumors are swirling that this timeline might be extended.

So how else does Obama plan to “get exploding deficits under control”? First in line, are the Bush tax cuts which contrary to popular belief save everyone money as they reduce tax rates across all brackets, these will expire in 2010 and 2011. As of now Obama promises to keep the middle class brackets the same, but 35% will jump to 39.6% which will primarily hurt small business. In case you have not heard, small businesses provide the majority of all jobs in the United States and there is only one way they will react to this tax jump – layoffs. Wealthy individuals will also experience a capital gains increase, another feel-good policy that will inevitably translate into poorer stock market returns for everyone. Last time I checked, Julio Osugueda was not rushing out buying stocks of Microsoft. Lastly, estate taxes will return to their pre-Bush levels thus taking from the deceased what the government already taxed once before, double taxation at it’s finest!

So where we do stand now? If you were to step back for a moment and think in strictly macro terms, we are experiencing a frightening shift of wealth from one group of people – an extreme minority to another group, an extreme majority. The money earned by the wealthy is stolen from them to pay for federal government programs (liberal agendas), public education and entitlements like medicaid/social security. One has to wonder, who truly benefits from this extravagant spending? Do the wealthy benefit from green research, inner city schools, section 8 housing, low income housing, teacher unions, rural development, tax credits for those making below 75,000, unemployment extensions, COBRA benefits, foreclosure preventions, food stamp increases, etc? I am certainly not wealthy and none of those things apply to me, yet I will be asked to pay over $53,000 in the next 30 years to fund all of this. Why?

This administration won on these promises, to take from the wealthy and fund the ailing and disadvantaged. Yet the funding does not take shape in the form of fundamental changes to our society, whereby those stuck in a vicious circle of poverty have a chance to get out, instead they are simply given a tangible amount of money to keep them content for the time being (13$ a week this time!). A simple ploy to further entrench the constituency of the liberals, solidifying dependence on federal aid for survival. David Alexrod will defend Obama’s actions stating that November 4th, Americans voted and supported this kind of change! Really? If they truly did, then I am scared for this country and if not, then kudos David, one hell of a brainwashing operation.

Policies like these are nothing more than FeelGood Economics, lacking any basis or precedence while ignoring facts, FeelGood Economics are designed to appeal to the masses. Much like Lenin appealed to the proletariat, those that are shackled and burdened by worsening economic conditions seek relief in the hands of the messiah they so cheerfully elected. We have seen Bush tax cuts relieve the tax responsibilities from the bottom 50%, raise revenues and provide America many good years after the sharp recession of the 2000s. Yet these facts are ignored or never learned, human nature is such that good things are quickly forgotten and replaced by only issues that matter currently. The stimulus bill will not work and attempts to tax the wealthy to shore up deficits will result in a repeat of the 1930s. Did you know that FDR also taxed businesses and corporations to pay for his failed policies? He even proposed to tax 100% of all income after a certain limit? Yet his failures are not found in school textbooks, instead they are designed to masquerade the failures of a war time Democrat President, they are not even found in the minds of today’s Congressmen and Senators who still believe that more should have been spent and more should have been taxed!

My hope is that in this age of communication and transparency and the ability of average Americans like myself to spread the truth the illusions of the 1930s will only last a short 2 years.