It has to be obvious even to those Americans living under rocks and bridges that President Obama cannot, and certainly will not, pick up one of his left-handed pens to sign a piece of legislation if it does not include raising revenue for the federal government.  To most of us, that means more tax and less spending power.  The chant heard from the west wing is Power to the Government!

His latest (perhaps not, I was asleep last night) attempt to suck dollars out of consumers’ pockets deals with the Keystone XL pipeline.  The President states that he is willing to look at the Keystone XL pipeline as a way to make the U.S. more energy independent.  However, in order to allow what some say could mean as many as 20,000 jobs for Americans with an average wage over $30.00/hr. there must be a, or some, tax(es).

Because Canada wants to take advantage of their potential to produce oil, President Obama has considered offering them the opportunity to do so by completing the Keystone XL pipeline in the United States.  The cost of the project would include a carbon tax, but not just on you and me.  The agreement is said to include a mandate that the Canadian government also collect such a tax from its citizens and forward a portion of that money to Washington D.C.  The details must still be worked out regarding the revenue split between the two countries.

WalMart is projecting a flattened sales curve due in large to the payroll tax increase recently instituted by the administration and Democrats in congress.  They didn’t actually increase the taxes again, they allowed the expiration of previous adjustments.  There will soon be even more costs imposed on the country through the Obamacare legislation.

The reduction in spendable income is most devastating to the working poor.  The impact lessens with the increase of disposable income.  Those on the government dole will, of course, not be affected because they don’t contribute to the income tax base and their ever increasing stipends and benefits will continue.

The proposal to raise the minimum wage to $9.00/hr. will, again, advantage the government more than anyone receiving the 20% increase.  While it may look good on the surface and make for a terrific sound bite, it will only harm businesses and low income individuals.  Here’s how:

• Raising the minimum wage will also increase the dollar amounts companies must contribute to the government (even without a percentage increase, the dollars will increase).  That extended increase has to be offset by increasing the cost of goods or services produced.  Consumers of those products or services must pay more and thus will have fewer dollars to spend elsewhere.

• The wage increase will not counterbalance rising prices on gasoline required to get to and from work, food (your taco, hamburger, or salad will cost a few pennies more), groceries, clothing, energy, etc.  Everything will be affected.

• Government “revenue” will increase only until enough more businesses shutter their doors producing fewer workers.  Fewer people working = more people receiving Welfare through the government from those with incomes above the poverty level.

• Government spending will continue to rise.

• Our elite leaders will then demand more money from the few remaining bank accounts as the cycle begins again.

Raising the minimum wage for unskilled jobs will put more people into poverty and hurt those of us who were once considered middle-class.  The rich, the millionaires and billionaires, will feel little effect regardless of how much is taken from them before they revolt.

Could this be the true urgency for gun control?  Send in the blind man.


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