Thanksgiving

President Obama's radio address today addressed the economy, the so-called stimulus, and a need for another stimulus. Somehow Obama claims that his administration has cut taxes for nearly every working man and woman.

According to the Tax Foundation: http://www.taxfoundation.org/blog/show/24944.html IRS data shows that the share of the tax burden borne by the top 1 percent now exceeds the share paid by the bottom 95 percent of taxpayers combined. The top 1 percent is comprised of just 1.4 million taxpayers and they pay a larger share of the income tax burden now than the bottom 134 million taxpayers combined.

Some in Washington say the tax system is still not progressive enough. However, the recent IRS data bolsters the findings of an OECD study released last year showing that the U.S.—not France or Sweden—has the most progressive income tax system among OECD nations. The U.S. relies more heavily on the top 10 percent of taxpayers than does any nation and our poor people have the lowest tax burden of those in any nation.

What is coming in recent years? Business income may be in for a significant tax hike in 2011. The Ways and Means Committee has approved a new 5.4 percent surtax on income over $1 million and two smaller surtaxes on other high-income people. These may become law at the same time as the current top tax rate on wages (35%) reverts to 39.6% (end of 2010).The Bush tax cuts are extended, and some new cuts added for lower income Americans. However the federal income tax on individuals over $200,000 will rise from 35% to 39.6%.

The Tax Foundation says that 44% of all tax filers will have no tax liability and most of those will get a check from the government, especially from the Earned Income Tax Credit (EITC) and credits for college tuition and child care. Obama's plan calls this tax cuts where, "Once upon a time we called this 'welfare'" (according to the Wall Street Journal).

The Congressional Budget Office (CBO) estimates the Obama plans will raise the national debt far more than Obama says. The CBO says the Obama plan will cause total deficits over the next ten years of $9.3 trillion, compared to Obama's estimate of "only" 7 trillion. That is in addition to the current national debt of $11.2 trillion and rising.

Obama has proposed a carbon cap and trade system that will raise energy prices for families and businesses. It will result in higher prices.

The health care bill proposed major tax hikes on high income and elderly citizens.

What, therefore, does the President mean when he says we should be thankful for his Administration's tax cuts???