Seeing Through The Obama Fog

We have heard much Obama rhetoric about the 14% tax rate that Governor Romney pays--for most of his income. Obama has demagogued that issue incessantly and the average citizen has no real clue as to what it's about.

Governor Mitt Romney is what is known as a "capital investor." Almost every capital asset in Ohio and all the U.S., was built by capital investors (yes, they, not the Government, DID build them). That includes nearly all the factories that used to provide an abundance of jobs in Ohio.

The tax rate for capital investors runs anywhere from 5% to 15%, depending upon the amounts invested and the length of time of the investments. There is no secret society of the super rich involved here. To use a common Obama cliché, everybody "has a shot" at the 15%, or lower tax rate. It is right there on every one's IRS Form 1040, Item No. 13. To determine the exact rate on capital gains, Item 13 refers you to IRS schedule D.

Until a few days ago, Obama demagogued the fact that Governor Romney had not submitted all of his tax returns. The tax returns of large capital investors is complicated and involves a lot of bookkeeping. When Romney submitted his 2011 tax return, it had 144 pages. How many of the agitators, including Obama, has knocked themselves out reading all 144 pages? I'll bet none. Romney also submitted summaries of tax returns for the past 20 years, each showing the source and amount of incomes and the taxes paid.

The lower tax rates for capital investors is a traditional incentive for those willing to risk their private funds to create jobs for others and to grow the national economy. Obama has never had a job in the private sector and one can see why he thinks that only the Government can create jobs. He thinks that any wealth outside the Government should be "redistributed" to all the people. Capital gains are, in fact, "redistributed" by creating jobs.

Obama has said that he wants to kill the 15% capital gains tax break for investors. If he does that, he will kill the incentive intended for capital investors, and the economy will stagnate more.

Bankruptcy is not a disgrace nor the end of a corporation like GM. Bankruptcy laws lead those industries back to solvency under the oversight of a receivership--designated banks or entities, assigned by the bankruptcy court.  Obama's Government bail-outs defeat the purpose of bankruptcy, passes the bill on to the tax payers and causes more national debt and more inflation. Moreover, Obama's bail-outs keep his same, incompetent, union-loyal CEOs in place--guaranteeing the need for another bailout a few years down the road.