Dear Red States

[Gilding the Lily]

Please read Dignitys post, http://www.usaviation.com/forums/index.php?showuser=14891 !

Even if you don't pay more in taxes, Nobamas tax plan will still cost you. When the small bussineses end up paying more taxes , based on making $250,000 a year, guess where that tax burden will fall.....................on Joe Consumer, who will now have to pay more for goods and services, so in essence, your taxes ARE being raised !

Southwind, I do not necessarily agree with Obama's tax plan. But there is a hole in that type of argument. It seems to neglect the fact that it is not only the middle and lower classes that act as consumers. Both rich and poor are consumers (and I don't think it is a stretch to believe that typically those who make more money consume more). So, when taxes are raised on small businesses that make over $250k, you are likely right that prices may rise. But you must also account for who will be shouldering that burden. It is like a consumption tax, and those that consumer more will shoulder more of this particular burden (and ramification of the tax plan) if, in fact, prices are raised to account for the additional costs of doing business under an Obama tax plan. For some, it may work out splendidly, as the tax cut to the consumer outweighs the extra burden that is now being shouldered by the many. For some, it may be a wash, as the tax cut weighs evenly with any additional burden due to the extra costs. For some consumers (typically 250K+) it will hurt because now they are shouldering more of a tax burden under Obama's plan and shouldering the raised prices that were caused from cutting other's taxes.

That is very simplistic and is not an argument in support of Obama's plan; there are several better arguments against Obama's plan than the one you listed. As example, what happens when those mom-n-pops that make $250+ are taxed more? They may do more than raise prices; they may pay employees less on year-to year basis. Likely, the people often effected are those who make less than $250k and are subject to Obama's tax cuts.... but what good would that be if they are getting less substantial raises year to year?

 

[Dignity]

I do not necessarily agree with Obama's tax plan....both rich and poor are consumers

you shouldnt..his plan wont work(or wont work like people think it will...)

in times like these(and pretty much all the time) wealthy people spend less and invest more, while they still shop for recreation for a Gucci and that long weekend getaway on the boat...generally they end up at Costco and then load all their goods into the back of the new Mercedes or Lexus SUV...while an everyday person spends more and investing much less(if there is anything left over to invest)..however the difference with raising prices on consumer goods will greatly effect the average person more so and that ability to spend and spread that spending throughout the community ..simply for the reason their budget is limited and their target spending is sort of isolated to one facet . if the tax plan successfully goes into effect, long term more of the middle class will start to disappear as the small business owners will either cut wages, lay off or raise prices on goods or worse.. go out of business. but the majority of any price increase to offset an additional tax increase will have an impact on the same people it is suppose to be helping...however wealthy spend their money entirely different than everyday people.
in that group of those making 250 thousand(small business owners) they are being lumped together with the very wealthy and attempting to shift that tax increase/burden..the problem is simply in that group there are more in the 250 thousand range than the very wealthy, those are the ones who help secure more of the middle to upper class by providing services to the community and associated jobs..when that group is taxed higher(small businesses) it effects the whole community of everyday people.

it is a simplistic view because it is what it is and these people who seeks these offices are elitists and if some really think they have your best interest truly at heart with these promises...well......it is the beginning(or well into) two classes...one very rich...and one..the opposite....
they will still be shopping at Costco and lunch at the County Club followed by a game of golf, while the rest of us are shopping at Walmart and scratching our heads thinking...what happened?

 

[Seatacus]

I think wiki did a pretty good job on the definition:

conspicuous consumption

B) xUT

I get it now.......thanks