Workers of the world unite! The proletariat will rise again!
It’s being called a “recipe for recession” that will produce “a remarkable reduction in work incentives for our most economically productive citizens.” In fact, according to Michael J. Boskin, Stanford University economics professor, senior fellow at the Hoover Institution, and former chairman of the Council of Economic Advisors, Barack Obama’s economic plan is evidence of “startling economic illiteracy.”
Under an Obama administration, taxpayers would witness the top 35 percent marginal income-tax rate jump to 39.6 percent and the tax cap blown off Social Security for individuals earning more than $250,000. Add this to Obama’s proposed phase-out of itemized deductions for high-income earners, and the result would be an increase in the combined marginal tax rate—from 44.6 percent to 62.8 percent—on every additional dollar earned. In short, after-tax income would plunge from 55.4 cents per dollar to only 37.2 cents.
To make matters worse, dividend rates would leap from 50.4 percent to 65.6 percent, with after-tax returns dropping over 30 percent—a combination that, according to Boskin, would “sooner or later... seriously damage the economy.”
Barack Obama has centered his campaign on change, and, indeed, if he is elected in November, taxpayers will be forking it over—lots of it.
Monday, August 04, 2008
Obamessiah's recipe for recession
From the Patriot Post's Friday Digest: