If there is a silver lining to this bailout that Congress is trying to decide on today, it is that Barack Obama’s plans for big government and more programs will have to come to a screeching halt. He knows it also and admitted as much on the Today show this morning when being interviewed by Matt Lauer. He said, “Does that mean I can do everything that I’ve called for in this campaign right away? Probably not. I think we’re going to have to phase it in. And a lot of it’s going to depend on what our tax revenues look like.” So all the hope that the liberals have put in Obama to finally bring this country into Marxism will wash away. I’m wondering how Obama will change his stump speech because a bankrupt country can’t pay for the necessities much less free college education and health care. He’ll sound even more like a complete loser now because everyone will know his promises are empty. And despite the fact that he keeps pointing fingers at President Bush and the Republicans, the blame lies with the Democrats just as much. I’ve been hearing alot lately the very thing I have called for here at my blog many times – Throw the bums out, all of them!
Barack Obama is also going to have scale back his plans for tax revenues because history proves that raising those taxes in times of economic crisis is suicide. Dick Morris covers this in detail in an article co-authored with Eileen McGann at Newsmax.com today:
“During the Great Depression, Congress raised taxes sharply in the Revenue Act of 1932. The top rate went from 25 percent to 63 percent. As a result, the real GDP dropped by 13.3 percent, and unemployment rose from 15.9 percent to 23.6 percent. In 1990, Bush-41 famously broke his “Read my lips — no new taxes” pledge of the 1988 campaign and raised the federal gasoline tax, federal excise taxes, and imposed 10 percent surtax on the top income bracket, raising its taxes to 31 percent. The recession that followed in 1991-1992 cost him re-election. It is obvious that increasing capital gains taxes by a minimum of one-third and possibly doubling them, both of which Obama has proposed during his campaign, would send a clear signal to investors to keep their money under the mattress. Who would buy stock now knowing that the tax on any profits is going to go up sharply if Obama becomes president?”
Obama said himself that his plans would have to change if tax revenues are down. As we all can see, those tax revenues better stay down or we can really kiss this country good-bye. We already are going to be taking a huge risk with this bailout and if it doesn’t work, this country will be in a new kind of Depression. And if Barack Obama is at the helm it will be something the likes of which we have never seen.