Politics and the Economy

I am adding this to my webpage because I think there are too many people who do not understand the workings of the US economy. I just want to go through the scenario which Obama explained to Joe the Plumber.

Obama Raises Taxes on Businesses Making $250K and More

• The small business has less money to buy wholesale in bulk. Thus he has to raise prices on goods and services.
• He also had to keep up revenue for his employees on payroll.
• The consumer (thats us in the middle class) decide that the appliance, new car, or bathroom remodel can wait, and we don't buy at the higher prices.
• The business revenue goes way down, and they have to lay off employees. So along with inflation we have high unemployment.
• The lower profits of the business cause them effectively to move into a lower tax bracket.
• The amount of taxes collected by the federal govt goes down due to the businesses lower tax bracket and the larger number of unemployed.
• The government has to raise taxes elsewhere like the capital gains tax, and high rates for those retired collecting social security benefits. I believe Obama's plan is to tax more families collecting over $100K in SS benefits. This should really scare those close to retirement age.
• The investors get out of the stock market and it crashes.
• Taxes on everyone goes up due to the crisis and the govt needing to bail everyone out and to pay for the socialized medical program.
• In the end, everyone making $30-40K per year and up are paying 40% of their income to the govt in taxes to pay for the socialized medical care, and all the bailouts for needed services, like the banks.