President Obama’s 2013 budget plan calls for a tax hike on the wealthy at the same time spending more funds on capital projects.  You might say that his tax plan is nothing new, but in fact it is.

You see, Obama administrations budget plan has been in constant flux since he took office. Now it has morphed into a monster.

Initially, Obama called for ending the Bush-era tax cuts, that were extended due to public outcry and government backlash.  For 2013, he has once again called for the end to these tax cuts. Next he added a proposal to limit tax deductions to the rich. But I guess that still wasn’t enough revenue to cut the trade deficit.  So he added a proposal limiting tax deductions and tax breaks to the wealthy.

What’s that, still not enough money!

From out of nowhere, Obama proposes that we raise the dividend tax on taxpayers making over $250,000 to almost 40% (up from the current dividend tax rate of 15%) to generate an addition 200 billion dollars to pay down the trade deficit.

What is happening here?  The continuous changes to Obama’s budget plan makes me ask questions about his leadership and competence: Does he just lack business savvy and common sense? Does he have inept and/or inexperienced economic and tax advisors? Does he have competent and expert advisors but doesn’t listen to them due to arrogance? Is he using his tax plan as a presidential election campaign strategy to win the lower and middle class vote?

Oh, I forgot to mention that Obama defends his tax hike plan with the fact that America must cut the trade deficit.  But in the same breath, his budget plan calls for billions in additional spending.  He is proposing spending federal dollars on community colleges, school construction, home energy improvements and a half TRILLION for highways and commuter rail.

Obama’s multi-trillion budget calls for generating $849 billion by expiring the Bush-era tax cuts from taxpayers making over a quarter of a million dollars annually. Another $584 billion by limiting the value of tax deductions and tax breaks to 28%. It also Includes a tax proposal to generate $206 billion by raising the dividend tax rate on wealthy taxpayers to 39.6% from the current dividend tax rate of 15%.

That’s not all! The proposal calls for getting $61 billion from big banks over the next 10 years (to pay off the bailout and help taxpayers in foreclosure), and another $50 billion by raising the tax rate to 30% for anyone earning over $1 million a year. This tax proposal is called the “Buffet rule”.  Finally, Obama plans to raise $41 billion by eliminating tax breaks for oil, gas and coal companies.

Obama says that taxing the wealthy will give lower and middle class taxpayers a chance to succeed; put all Americans on the same level.  Can he actually believe that? Is he so naive as to think that a few extra bucks to middle class taxpayers will mean the difference in getting rich?

Obama’s 2013 budget plan looks, smells like and tastes like a plan for a Socialist society, not once based on Capitalism.  Capitalism means that anyone with the desire to work hard, regardless of income, have a chance to be successful.  We see success stories every single day.  Getting rich is about sacrifice.  While Socialism makes individuals lazy and uninterested, capitalism spurs growth, initiative, creativity and self improvement.

The biggest reason I hate Obama budget proposal is jobs.  Continued taxation of the wealthy and big business will have a direct negative effect on job creation.  Businesses will need to allocate funds to cover the tax hikes, in lieu of creating jobs.

I commend President Obama for thinking about fixing our schools and highways. Sure they will create jobs but they aren’t private sector jobs. That means that the government is footing the bill; it’s a more expensive unemployment plan. What happens when the construction is finished, will unemployment rise again?

I haven’t even touched on the other elephant in the room, ObamaCare.  While the government “experts” estimate it’s cost at $1 trillion over the next decade, you could probably triple that projection.

Instead of taxing the wealthy and big business, President Obama should look back at successful budget plans implemented by other presidents.  President Ronald Reagan’s budget plan brought the country back from the brink of financial ruin WITH tax cuts and government spending.  A budget plan that calls for cutting taxes will just stymie economic growth and prevent job growth.

What is Obama thinking?

People are getting fed up with the increase of taxes. Take Frank Alford, a Floyd County, Indiana man.

Frank, who owns several single-family rental homes, showed up at the city-county building in New Albany to pay his property taxes with more than $21,000 in coins.  His reason?   To protest higher taxes.

Last year, Frank showed up to pay his taxes with dollar bills!

Alford loaded a garbage can with $21,333 in Susan B. Anthony dollar coins, and he carried a sign that read, “Property taxes gone wild.”

“I’m letting them know I’m a very unhappy taxpayer,” he said.

According to Mr. Alford, his property taxes have gone up 48 percent since 2006, and tax relief recently passed by the Indiana Legislature has done nothing for people who own rental property.

“The owner who lives in their property got all kinds of tax breaks. They don’t give you no homestead exemption, no mortgage exemption, nothing,” he said. “You’re paying double what you’re paying than owning your own home.”

Alford, a retiree with two hip replacements, loaded what he estimated was 400 pounds of coins and then headed inside to the treasurer’s office to settle up.
Deputy Clerk Bette Buechler did a quick tally of Alford’s property taxes.

When asked if the office has to accept the Susan B. Anthony coins, Buechler said, “I think I’m understanding if it comes in pennies, we don’t have to.”

A Floyd County deputy sheriff was asked to lend a hand getting the money to a nearby bank to be counted. As for Alford, this may not be his last protest.

“If we don’t get some relief, it may be in quarters, dimes, or pennies next year,” he said. “I’m angry at them.”