In the Saturday Union Leader John DiStaso has an article in which NH-02 Rep Paul Hodes pins the “tax cuts for the rich”canard on John McCain, and declares his economic policies as detrimental to the middle class. You see McCain has this goofy notion that the people who earn the money know best how to invest it in the economy. Hodes has other ideas. (previously discussed here,)
Hodes counter’s McCain with an Obama plan that would put $1,000.00 dollars in the pockets of those making up to $250,000.00 per year while “asking more” of those who with higher incomes. Hodes completely ignores the fact that Obama’s economic plan will extract around 5 trillion dollars back out of the economy in the process. And guess where that money will come from?
That’s right, the middle class.
What Hodes does not want you to know.
Obama is initially proposing at least 307 Billion per year in new spending.
Obama and Hodes favor cap and trade which will extract at a minimum, about 1.5 trillion dollars out of the economy.
Democrats tinkering with the AMT is still scheduled to hit middle class taxpayers as early as 2009 with another 1.5 trillion in new taxes.
By allowing existing tax cuts to expire (which Hodes favors) will create an additional tax on capital gains–which will hit everyone including middle class investors–to the tune of 1.7 trillion dollars.
So maybe the people of NH-02 should be proud to know that their congressman wants to take 5 trillion dollars out of the economy. But should they or anyone for that matter, believe that the only people who will be affected are the top 5% of wage earners? These folks already shoulder 80-90% of the entire tax burden.
The middle class is going to pay for all of that and more, through wage erosion, fewer new jobs, increased unemployment, and a massive increase in the cost of living, at a point in our economic history when a recovery is just as realistic as an actual recession.
You don’t have to be an economist to know that removing that much investment capital from the economy will have a serious negative impact on our future. But Paul Hodes doesn’t want you to know that. He’s ready to buy you off with $1000.00 hoping you wont miss the 5 Trillion. It’s Hodes new Math, and it’s bad for New Hampshire.