Barack Obama's plans for change include massive new programs and taxes. Candidate Obama promises that middle and lower income groups will not have to pay for any of his programs. Instead, he will fund his programs by taxing those greedy rich people and businesses. So lets all stand up and cheer for Candidate Obama who promises to rob Peter to pay Paul.

But wait, what is the consequences of all of these new taxes? One important thing to consider is our ability to compete with other industrial nations. A report by the Tax Foundation shows that when you combine the corporate taxes imposed by  federal and state governments, that we have the second highest corporate taxes of all industrial nations. Those taxes create an uneven playing field for American companies. In many cases the only way for American companies to compete and stay in business is to send their jobs to foreign countries where the cheaper labor helps to offset their high taxes. Another way corporations escape their tax burden is to move their corporate headquarters to a more corporate friendly nation or get involved in many different tax shelters that are created in our nations byzantine tax code. 

So we have a situation where Congress socks it to corporations in the terms of taxes in order to get the sheeple to agree to bigger and bigger government programs, then they create a loop hole to allow corporations to avoid the taxes so that they do not pack up and move to another country. And then along comes Candidate Obama spouting all this government giveaways saying, "don't worry, you won't have to pay, only the rich and businesses will pay." But that is one of the big lies. But one way or another, you will pay for his programs. You will either pay for it in lower wages, lost jobs, or an increasing budget deficit that we will all have to pay sooner or later.

So before you jump on the Barack Obama, rob Peter to pay Paul bandwagon, remember there is no free lunch and if you reduce American companies ability to compete globally, then America will lose it's companies and you will lose your jobs.

 - Thomas Paine 2

Technorati Tags: Obama, Presidential election 2008, tax reform, taxes