What’s this shell game on taxes?

By Richard Olivastro
Posted 3/3/09

Taxes have gone up and will continue to increase across the country. President Obama’s proposed tax changes will affect all Americans.

Those are facts. Here’s more.

While the administration and the mainstream media trumpet the Obama tax …

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What’s this shell game on taxes?

Posted

Taxes have gone up and will continue to increase across the country. President Obama’s proposed tax changes will affect all Americans.

Those are facts. Here’s more.

While the administration and the mainstream media trumpet the Obama tax changes as good for both middle-income earners and the so-called lower bracket (most of whom would actually receive government-directed money transfers), the truth is exactly the opposite for you and almost every American.

Simply stated, what is under way is a government-orchestrated shell game on taxes.

All three levels of government — federal, state and municipal — are participating in the shell game (dare we say con) into which taxpayers are drawn in search of a personal tax cut.

In the current scenario, the operator of the tax shell game is the new federal administration. The initial role for Barack Obama is to animate each voter, who may, or may not also be employed and currently paying taxes. Mr. Obama is eloquently qualified for this assignment.

Meanwhile, the challenge for taxpayers is to try to find their promised tax cut.

What makes this version of the proverbial shell game initially a win-win for Democrats at every level is, on the one hand, the operator and his party are able to deliver what can be portrayed as a tax cut for the vast majority of voters.

On the other hand, picture how the operator of any shell game uses sleight of hand as he speaks to his mark(s).

Now, focus in on how a shell game is being used in this instance to subsidize the budgets, at least initially, of state and local officials who, in growing numbers in recent years, have irresponsibly practiced out-of-control spending.

Thus, Mr. Obama is demonstrating that he, like his last Democrat predecessor, “feels your pain.” The objective is for stressed Americans, whether they voted for him or not, to become “animated” (a necessary behavior by whoever the mark is for a con to work) and more likely to move in his direction.

That’s why Obama is undertaking the effort. If he and his associates can successfully execute their tax shell game, that’s even better. After all, Obama controls the federal executive, and his cohort Democrats control both chambers of the U.S. Congress, 29 of the 50 governorships, and occupy over 55 percent of the seats in state Legislatures around the country.

But in this case, what’s good for Obama and Democrats is very bad for you and almost every other American.

Here’s why: Particularly insidious about the shrewd political shell game now under way is that the ‘pea’ or “yield” from the federal tax rate change that the operator will let you, the voter, see and perhaps even receive; subsequently disappears by being covered by a different shell. Read that as gobbled by up a level of government via increases in local real estate and school taxes, as well as state income, sales and other taxes, user fees and levies.

In other words, the estimated $13 extra per week you may receive during 2009, which drops to about $7 in 2010, has already been “covered” by state and local increases in any number of taxes, fees and levies.

Worse, still more increases by both local and state government are coming; and the Obama tax changes are not only inadequate and ineffective as an offset, they are part of a wider plan that accelerates the growth and expansion of the federal government as well as state and local governments whose spending excesses will continue to be fed by a federal government subsidization purposely mislabeled as stimulus.

The better remedy (for you economically and for your individual freedom and opportunity) would be to rollback and reduce the size and scope of federal, state and local government, and to reduce the taxes levied on every American at every level. If you focus and demand the latter, you will achieve your goal of smaller government.

P. S. You can avoid becoming a mark for anyone by avoiding all shell games.

Richard Olivastro is a professional member of the National Speakers Association, president of Olivastro Communications and founder of Citizens For Change. He can be reached at Rich@Olivastro.NET or 877.RichSpeaks.