No Psychic Powers Required

It doesn't take psychic powers to predict what's going to happen as a direct result of the Obama-led redefinition of America into a socialist utopia. In fact, all it takes is a modest understanding of history. Who was it that said, "There's nothing new under the sun"? There's nothing new about Obama's socialist agenda, nor will there be anything new about its result.

Let's start with taxing the rich and giving to the poor. The poor generally see that as a pretty good idea, but what if they knew the real consequences of that part of the plan?

Although the number seems to keep coming down, let's just use Obama's original number of $250K. The idea is, if an individual earns more than $250K, somehow that's not good citizenship. Therefore, the government has the right to confiscate most of the earnings in excess of that amount.

So, let's say I've got my small business going great guns, and am on track to earn $500K this year. But Obama's new tax plan will take 70 cents on the dollar for the second $250K. Adding in State & Local Taxes, I would end up keeping a tiny fraction of those earnings for myself; possibly approaching 10%.

Being a rational person, I will do whatever I must to avoid those confiscatory taxes. Since I'm a consultant, with earnings based on hourly fees, once I realize there's no profit in working for that second $250K, I just won't. I'll cut my hours in half, or I'll work until I've earned $250K and take the rest of the year off. Then I'll resign myself to the fact that my earnings will be capped at $250K, at least until somebody from the conservative philosophy takes office. And I'll continue limiting my efforts to earning $250K and only $250K.

The Obama crowd might say that's a good thing. More work for other consultants, and isn't it great for me to earn so much money and still be able to get so much time off?

Maybe there's a personal attraction to making pretty decent money and still having lots of free time. But compare that to what I would have done without the confiscation:

I would have looked at expanding my business or investing in another business. After all, what if I could invest that second $250K into something that might pay off in bringing me an additional $250K a couple of years down the road?

Having the freedom and incentive to invest the profits from my success opens all sorts of possibilities. Maybe I am able to open a new business that employs lots of people. Maybe I'm able to invest in the development and sale of a new invention that makes everybody's lives better. I certainly will contribute a nice chunk of that income toward my church and favorite charities.

All it takes is the smallest bit of thought, which even the tiniest mind would be able to grasp. Obama thinks he will get 70% of that second $250K to pay for his universal healthcare and general income redistribution. But in reality, all he'll get is the 35 or 40% of the first $250K. Because it's not worth anybody's time to simply have the fruits of their labor confiscated by the government, which will waste most of it anyway on the bureaucracy and lining pockets of Democrat cronies.

It didn't work in the Jimmy Carter 70's. And it won't work in the Barack Obama 00's and 10's.

And the worst part, I'm pretty sure he knows it. What conclusion might that thought lead you to?

Me too.