The Tipping Point Draws Near

Remember our discussion from way back before the election about Obama's tax tipping point?  The nutshell of the idea is that when 51% of the nation pays no taxes, it will vote itself tax increase after tax increase from the 49% until the country plows its way into economic oblivion.  I'd highly recommend reading that previous post to see who pays taxes (and how much), and a terrific example of our America's progressive tax system works.  Once you've done that, continue with this outstanding post at Legal Insurrection, keeping in mind that in 2007 (the most recent year for which we have data) the number of people paying no income tax was already 40%:

Scrolling through the excellent TaxProf Blog reminded me of a fundamental dynamic in American politics. A large percentage of voters pay no federal income taxes: 47% Will Pay $0 Income Tax in 2009.

But that doesn't tell the full story. For whom do these non-tax paying voters vote? There will be no shock here. The lower the income, the more likely the person voted for Obama. And at the lowest tax brackets, these voters not only pay no taxes, they likely receive checks from the federal government. (Interestingly, at the highest income level Obama garnered a higher percentage of voters by a small margin, perhaps because people who already have made their fortunes are not as worried by marginal tax rates.)

This chart linked by TaxProf Blog shows the dynamic:

We are witnessing an era where a near majority of voters have no incentive to hold down federal income taxes, and every incentive to increase federal spending on social programs and hand outs. Do not underestimate this dynamic; it is the bread and butter of the Democratic policy prescriptions and agenda.

A tyranny of those who pay no taxes.

47%…!  We are getting dangerously close to the tipping point, and Obama is driving us ever closer to the brink.  When we go over, there is nothing stopping the entitled masses of the majority with their hands deep in the pockets of the productive minority from ruining everything that 230+ years of American greatness and prosperity has brought us – it will only be a matter of time until the productive minority is swamped, leaves the country, or goes bankrupt.

Now is the time to remind all Americans that when those who pay taxes leave or fold, there is no one left to make up the difference, and all will be left wanting.  Will this be the legacy that Barack Obama leaves to American history?  Given how he's closed the gap from 40% to 47% in just nine months, and has plans for multiple trillions more in spending on programs like government health care and cap-n-tax, I don't see any other possibility.

Woe to our children and grandchildren if Obama is not stopped!  This is what Rush Limbaugh meant when he famously said he hopes Obama fails.

There's my two cents.

I'm a gun-owning, Bible-thumping, bitter clinger conservative in the heartland. You can disagree with me if you want (you do, after all, have a right to be wrong)...just don't be rude or stupid and we'll get along just fine! :)

Posted in Economy, Leaning Left

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