Once again, Democrats have thrown themselves on top of an Obama proposal as if it were a live grenade, snuffing out the President???s tepid effort to extend the Bush tax rates for individuals that make less than $200,000 per year. Those lucky folks would have received a one-year stay of execution from Taxmageddon, which will slam into Barack Obama???s hideously weak economy on January 1, adding the biggest tax increase since ObamaCare to a system that already can???t produce enough jobs.
The current Senate Democrat caucus is the most determined band of obstructionists in recent history, determined to block any growth-oriented legislation, no matter how much it costs the American people. If the parties were reversed, the media would have crucified them years ago, and Senate Majority Leader Harry Reid would be a pop-culture icon of corruption.
In this case, President Obama???s dubious proposal had to be tabled because Reid didn???t want to face a vote on a Republican counter-proposal that actually would protect the American economy, by granting relief from Taxmageddon to all Americans, especially the job creators that Barack Obama openly disdains.
But Obama doesn???t disdain them anywhere near as much as Harry Reid does. The Senator issued a statement utterly breathtaking for its sneering contempt, as well as the staggering lack of understanding for the American republic it displays.
“It’s the help Paris Hilton legislation,” Reid said of the Republican proposal to stave off massive tax increases for everyone. “It would give people like her a tax break for doing nothing ??? $46 billion of the American people’s money to help Paris Hilton and others.”
(Emphasis mine.) In Harry Reid???s vision of America, the government rightfully owns all money, no matter how completely inept it repeatedly proves itself as a steward. Holding off a gigantic tax increase therefore represents the government giving ???the American people???s money??? to rich layabouts who spend their days ???doing nothing.???
In reality, a great many of those entities earning $200,000 per year are ???flow through businesses,??? small businesses that pay taxes through the individual income tax. As the Heritage Foundation reported recently, Barack Obama???s own Treasury Department conclusively settled the question over whether these businesses are important job creators.
Much flow-through tax is paid by independent contractors who employ only themselves, but 4.3 million small businesses with multiple employees paid taxes in this manner in 2007, which is the last year for which data is available. Of that number, 1.2 million, or 28 percent, earned more than the $200,000 annual income that turns them into Paris Hilton in the eyes of Harry Reid, and revenue targets in the eyes of Barack Obama. Of course, those would also tend to be the most successful small businesses, with the greatest chance of creating new jobs.
For that matter, the individual contractors who employ themselves in ???flow through businesses??? do not deserve to be crushed in Taxmageddon, or sneeringly dismissed by lifetime incumbent politicians as lazy trust fund kids. Further government confiscation of their income will contribute to America???s economic slowdown, and raise the prices they charge to larger businesses which hire them.
Comrade Harry Reid would have felt right at home a hundred years ago, in a different country, but there is no room for his mind-set in the United States of America ??? not if we want a fighting chance to pull out of the socialist death spiral. Every unemployed American should demand a government that doesn???t actively loathe the people who might be willing and able to hire them.