Obama’s Trickle down TAX cuts
October 21, 2008 7:53 pm 2008 Race, ObamaHere’s an example of the trickle down effect Obama’s tax plan will have you can share with your favorite liberal.
Joe & Jane are a retired married couple with no dependents living on a combined fixed income of $50,210.00 and joint file.
According to the calculator, Joe & Jane would receive a flat tax cut of $1,000.00 or $83.33 per month.
Joe & Jane live in a rented senior-care condo at $2,125.00 per month. Joe & Jane’s landlord owns several condos and earns $315,000.00 per year. In order to offset the cost of paying Obama’s taxes, Joe & Jane’s rent is raised 6% to $2252.50 per month. Joe & Jane are now paying $127.50 per month in trickle down taxes to Obama.
Joe & Jane pay $1,125.00 per month combined insurance premiums. Because of Obama’s corporate tax increase and their insurance agent makes $251,00 per year, Joe & Jane’s combined insurance premiums go up 18% to $1,327.50 per month. Joe and Jane are now paying $202.25 per month in trickle down taxes to Obama.
Joe & Jane both have Rx that combined cost $43.00 per month co-pay. Because of Obama’s corporate tax increase and the sole-prop pharmacist makes $273,000 per year, Joe & Jane’s Rx goes up 22% and their co-pay is increased to $52.46 per month. Joe and Jane are now paying $9.46 per month in trickle down taxes to Obama.
Joe & Jane buy $136.00 of fuel each month. Because of Obama’s corporate tax increase and the gas station owner who owns three gas stations makes $258,000 per year. Joe & Jane’s fuel cost goes up 14% per month to $155.04 per month. Joe & Jane are now paying $19.04 in trickle down taxes to Obama.
In total… $127.50 + 202.25 + 9.46 + 19.04 = $358.25 per month or $4,299.00 per year - $1,000.00 annual tax cut = $3,299.00 Joe & Jane are now paying per month in trickle down taxes to Obama.
Pre Obama, Joe & Jane’s basic annual pay out was $41,148.00. Post Obama Joe & Jane’s annual pay out is now $45,450.00.
Given Obama’s stated plan and formula to raise taxes, there is no way such across the board taxes won’t have just such an effect on our economy.
