April 25, 2008
The next president may not only be a Democrat, but Barack Hussein Obama, the most liberal of the 100 members of the U.S. Senate. An Obama administration will be much more liberal than the one it has replaced, and that will result in a broad-reaching, socialist-leaning, greatly expanded American government, says Pete du Pont, former governor of Delaware and Chairman of the National Center for Policy Analysis.
- Obama has proposed increasing annual federal spending, respectively, by $303 billion, nor would he likely limit any spending -- not entitlements, not earmarks, not farm subsidies.
- Obama proposes raising top income tax rates to 39.6 percent from 35 percent, capital gains tax rates to perhaps 28 percent from the current 15 percent, dividend tax to 39.6 percent from 15 percent, and top estate tax rates back up to 55 percent.
- And he wants to raise substantially or abolish the $102,000 cap on wages subject to the Social Security payroll tax.
"He is indeed a redistributionist," said blogger and Obama supporter Andrew Sullivan after watching Obama's answer to a tax question in last week's presidential debate.
Protectionism will replace free trade as American policy, even though trade creates domestic jobs, says du Pont:
- Foreign-owned companies operating in the United States employ five million people (think Honda's 16,000 or Nokia's 6,000), and America's exports of goods and services employs another 11 million.
- But earlier this month Speaker Nancy Pelosi blocked a vote on the Colombia Free Trade Agreement by suspending the requirement that Congress vote up or down for such a treaty.
- Obama wants to repeal or significantly modify NAFTA, which he says has never "been good for America."
- Obama's protectionist America would limit international trade agreements, likely leading to anti-American protectionism by other nations.
Of course higher taxes and broad protectionism are not new ideas, they were tried by Herbert Hoover and led to the Great Depression, says du Pont.
Source: Pete du Pont, "Obama's America: He promises higher taxes, more regulation, less trade and less opportunity," Wall Street Journal, April 23, 2008.
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