Income tax day, April 15, 2010, now divides Americans into two almost equal classes: those who pay for the services provided by government and those who don't. The percentage of Americans who will pay no federal income taxes at all for 2009 has risen to 47%.
That isn't the worst of it. The bottom 40% not only pay no income tax, but the government sends them cash or benefits financed by the taxes dutifully paid by those who do pay income tax.
The outright cash handouts include the Earned Income Tax Credit (EITC), which can amount to as much as $5,657 a year to low-income families. Other financial benefits can include child tax credits, welfare, food stamps, WIC (Women, Infants, Children), housing subsidies, unemployment benefits, Medicaid, S-CHIP, and other programs.
This is both a massive transfer of wealth and a soak-the-rich racket. The top 10% pay 73% of the income taxes collected by the federal government. The cost of Obamacare will skyrocket our income tax rate within 30 years.
Although all wage-earners help fund their own Social Security and Medicare benefits, only federal income taxes pay the costs of running the federal government. Only those who pay federal income taxes are responsible for paying off our $12.8 trillion national debt and for bailing out Social Security, Medicare, and Fannie and Freddie when they collapse.
When Obama told Joe the Plumber he wanted to "spread the wealth around," Obama wasn't kidding. That's exactly what he is now doing: taking money from taxpayers and spreading it around to non-taxpayers.
Nor was Obama kidding when, on the eve of his election, he threatened, "We are going to fundamentally transform the United States of America." Converting the earnings of American workers into handouts for those who voted for Obama in 2008 is certainly a fundamental transformation.
Obama's promise not to raise taxes on Middle Americans is already down the drain. Obama brought former Federal Reserve Board Chairman Paul Volcker out of obscurity to serve as chairman of an Economic Recovery Advisory Board and announce that we need to raise taxes.
Volcker was blunt in predicting that the new tax increase will be a Value Added Tax (VAT). That's the tax European Socialists love because its rates can be hidden and frequently raised, while producing rivers of revenue for the bureaucrats.
Having already co-opted the executive and legislative branches of government for his fundamental transformation, Obama now wants to use the judiciary, too. The retirement of Supreme Court Justice John Paul Stevens gives him this opportunity.
On January 18, 2001 on Public Radio WBEZ-FM, Chicago, Obama complained that the Earl Warren Court "wasn't that radical" because "it didn't break free from the essential constraints placed by the Founding Fathers in the Constitution. . . . The Supreme Court never ventured into the issues of redistribution of wealth and serve more basic issues of political and economic justice in this society."
Calling for the Supreme Court to participate in the "redistribution of wealth" is shockingly revolutionary. Any judicial nominee who agrees with Obama's theory should be rejected.
Obama's game plan to "fundamentally transform" America is based on both Saul Alinsky's community organizing and on the Cloward-Piven spending strategy. Saul Alinsky was a famous Chicago radical. Richard Cloward and Frances Fox Piven were Columbia University sociologists.
The goal of all three of these agitators was the overthrow of the private enterprise system. The Alinsky strategy is to use community organizing and mass demonstrations by those he labeled the "Have Nots," and the Cloward-Piven strategy is to overload the bureaucracy with enormous demands for entitlements, thereby causing a financial crisis.
Obama used Alinsky methods with taxpayer financing of ACORN and sub-prime mortgages. Obama used Cloward-Piven methods by massive deficit spending for entitlements for more and more millions of people.
Fortunately, hard-working, taxpaying Americans are beginning to understand how they are being ripped off and rushed into bankruptcy. The one way to save ourselves and our country is to elect a Congress in November pledged to stop the spending. Some Pay and Some Receive
The news that the United States has become a two-class society, i.e., half of Americans pay federal income taxes and half don't, has bounced around the media and shocked Americans. Most people had no knowledge of this appalling economic fact.
Even worse is the reality that 40% of Americans receive federal government handouts of cash and valuable benefits. Those handouts are financed by the people who do pay federal income taxes.
Those handouts create a tremendous bloc of people who depend on the government for their living expenses. The Tax Foundation reports that 20% of Americans now get 75% of their income from the federal government, and another 20% get 45% of their income from the government.
Obama's Stimulus law will add nearly $800 billion in new means-tested welfare spending over the next decade. That means about $22,500 per year for every poor person in the United States, which will cost each family that pays federal income taxes over $10,000 a year.
According to the Tax Foundation, married taxpayers pay three-fourths of all federal income taxes, whereas two-thirds of single parents who file as head-of-household pay no income tax at all. According to a Heritage Foundation report, taxpayers (mostly those who are married) will spend more than $300 billion providing welfare aid to single parents (mostly women).
The pundits like to divide Republicans into two classes, the fiscal conservatives and the so-called social conservatives, and pretend that their interests are different and mutually exclusive. In fact, the overwhelming reason for big government's extravagant spending, which is properly railed against by limited-government conservatives, is the breakdown in our culture, which social conservatives have been battling for years.
If limited-government conservatives are dreaming of taking back America for fiscal sanity in the November elections, they should study how the unprecedented decline in marriage and the increase in illegitimacy are the major causes of our bloated government and its gigantic welfare spending.
In 2008, 40.6% of children born in the United States were born outside of marriage; that's 1,720,000 children. This is not, as the media try to tell us, a teenage problem. Only 7% of those illegitimate babies were born to girls under age 18, and over three-fourths were born to women over age 20. The problem is the collapse of marriage as the social institution responsible for the costs of the care of children.
The fiscal conservative faction of the Republican Party should also study why Republicans won their big Congressional majority in 1994, and what has happened since. The Democratic Party's welfare boondoggle was a major reason for the Republican victory.
The wrong-headed welfare system started in the 1960s with Lyndon Johnson's Great Society and his proclaimed war against poverty. The system should have been called the war against marriage. LBJ's Great Society set up a grossly immoral system whereby millions of people were taught that they had an "entitlement" to pick the pockets of law-abiding, taxpaying families if they met two conditions: they didn't work, and they were not married to someone who did work. This destroyed the work ethic and subsidized illegitimacy by giving single moms money and scores of benefits such as welfare, food stamps, Medicaid, housing, utilities, WIC, and commodities.
LBJ's welfare system undermined marriage and greatly increased all the social problems that flow from fatherless homes, such as drugs, sex, suicide, runaways, and school dropouts. The feminists rejoiced because all the cash went to women, thereby deconstructing what they called the oppressive patriarchy, and the liberals rejoiced because these handouts required more bureaucrats and higher taxes.
True to their Contract with America, the Republican Congress passed welfare reform in 1996. It was even signed by President Clinton, who admitted that it was time to "end welfare as we know it."
The goal of Republican welfare reform was to help families move to employment and self-sufficiency and end long-term dependence on government assistance. This policy was repealed by Obama's Stimulus, which will add more families to welfare dependency by paying bonuses to states that increase their welfare caseloads.
Obama's real goal is a permanent expansion of the welfare system, as called for by the Cloward-Piven spending strategy. Nothing promotes that goal as much as discouraging marriage and providing financial incentives to increase the number of single moms.
Single moms have become a fast growing demographic group that demands a growing welfare industry. They look to Big Brother government (a.k.a. the Obama Administration) as a provider and the solution to their problems.
Even the recently passed Obama Health Control Law contains financial subsidies to unmarried couples that are denied to married couples. This rewards the unmarried women who were the second largest demographic constituency that voted for Obama for President in 2008. The political goal of the Obama liberals is a society dependent on the government.
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