Obama’s Plan is Flawed

Obama’s plan sounds good to most people because he speaks of “redistributing wealth” by taking from the rich and giving to the poor. As much as Obama sounds like Robin Hood these days, if he would just study history he would know this plan for stimulating the economy is fundamentally flawed. Imposing higher taxes on the wealthy will prove detrimental to the economy.

Obama has this trickle up theory that by giving money to the poor he is giving them opportunity, but in reality he is only continuing to enable them to stay in the same rut that most of them were born into. The reality is that when taxes are raised for the wealthy it will discourage the economic leaders from expanding and working.  Many middle and lower class individuals view “rich people” as greedy. While in reality those who are wealthy are simply motivated to gain more wealth. 

Take any upper level executive for example. He will work all the overtime he can, while he sacrifices time with his family in order to climb the ladder and get ahead. This executive will see the prize, he will find pride in being able to provide his family with a comfortable lifestyle and find pride in his successes. His wealth has come at a price, but he was willing to work hard and make sacrifices to reach his goals. Obama’s proposal to increase taxes on the wealthy while giving tax breaks for the poor will cause this executive to work fewer hours to stay out of the upper tax brackets. This executive like so many others will take more time with his family and more vacations. He will cut back on the expansion of his business and likely lay off some of his employees. Hopefully, you can see how this will be detrimental to the economy as a whole.

The blame cannot be placed on the executive because with the proposed tax increases the upper class will be able to work less hours and make the same money as if they worked more hours and paid higher taxes. Anyone would make the decision to work less. We should also keep in mind that the majority of tax dollars paid into the economy are paid from the wealthy who are smaller in numbers but pay substantially more in taxes.

Aside from the fact that Obama’s plan sounds  much like socialism, it just doesn’t make sense to let most of our society live off the hard work of a relatively few motivated people.  Obama’s plan will essentially force small businesses to cut jobs in order to pay higher taxes in an attempt to spread the wealth to those who choose to sit at home, uneducated and make babies.