With Obama in charge, hold onto your billfold

2009-05-14 / Letters

In Obama's final campaign speech of 2008, he said, "I will give a tax break to 95 percent of Americans who work every day and get taxes taken out of their paychecks every week, and here are the facts: If you make under $250,000 you will not see your taxes increase by a single dime- not your income taxes, not your payroll taxes, not your capital gains taxes. Nothing." There are two types of taxes: direct taxes that Obama spoke about and indirect taxes that you don't see, but exist.

Under Obama's plan to allow Bush tax cuts to expire he'll put an 8 percent tax on businesses making $250,000 a year. These are producers, manufacturers, wholesalers and retailers that ultimately sell to the general public. What most people don't understand is that tax on business is ultimately considered a business expense.

Let's look at one of these industries: Producers pump oil, manufacturers create gas and retailers sell it to you and me. You get the idea.

The American producer of oil will be taxed 8 percent; it will be added to his cost then sold to the refinery, which will be taxed 8 percent, which will be added to his cost, then shipped to the gas station where you and I get our gasoline, and in most cases, the owner will be taxed 8 percent, which will be charged to us.

That means that we will see a gallon of gas increase by 24 percent, and at today's cost, it will add 72 cents to one gallon of gas, or on average, $14.40 per 20 gallons of gas.

Now imagine this tax on everything you buy- - food, cars, clothing, everything.

You may not see this tax, but you will feel it. Todd R. Lundy Thousand Oaks

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