The Reality of Obama's Tax Cuts

The reality is, there were none. Obama loves to say "We cut taxes for first-time homebuyers. We cut taxes for parents trying to care for their children. We cut taxes for 8 million Americans paying for college."

He is referring to his 'first time homebuyers tax credit and his child's tax credit and many other tax credits from the stimulus.

Yet the fact is, a tax credit is not the same thing as a tax cut. A tax cut, is a reduction in tax rates. These credits, did not lower tax rates all. It did not lower the prices of college tuition or homes at all. Really all it did was tell people how to behave in order to keep their money. The argument could then be made that this is a form of tyranny. However some credits or incentives are some times effective, but certainly not tax cuts.

The other interesting thing about his whole "cut taxes for Americans paying for college" is, i didn't know college tuition was a tax. So what he is saying is that, if i have this right, is that if i go to say, Macalester College (note i wouldn't and, probably couldn't but this is just for the example), the tuition fee, is a tax. Really? Since when.

A tax credit, when it gets down to it, is simply government spending, just in the form of a 'credit' from treasury to an individual. So it is no different from the government spending money on a pet project to re-sod the D.C. mall. It is the same basic principle. The difference is the money goes to people, not a sodding business. Would we call a government stimulite that spends money to build a bridge a tax cuts? Of course not. The other interesting thing is, like the bridge, or the D.C. mall project, who do you think pays for those? You. You pay TAXES for the government to take your money, and give it out to people, to tell them how to act so they can spend some money. So, redistribution, AND tyranny. Wow, the best of both worlds right?

These 'cuts' as he calls them are also refundable, which means people, who pay no taxes get them. Well how can you cut taxes for some one who doesn't pay taxes?

In short, Obama's "tax cuts" are wildy inaccurate, no, non existent. He never cut taxes.