by M. Vogelvang

Created on: June 09, 2009   Last Updated: July 02, 2009

Not too long ago, our country elected a new president, and still little is known about where he actually stands. While many rejoice in this victory, they may not realize the challenges that they themselves have voted for. One of the only things that Mr. Obama was crystal clear on was his desire to institute a tax increase on citizens earning over $250,000. When Obama voters begin to think about the potential cuts that individuals will make when faced with higher taxes, they commonly think about jobs being lost. It is easy to think that their job is safe since perhaps they work for a large company, or the government, or simply won't be affected by the taxes. This false belief led them to make a fatal decision that will affect their everyday lives.

Let's consider the average day of a person making $250,000 a year. They'll wake up and probably take the kids to school (private of course). Then it's off to work. Oddly, when they get home the house may have been cleaned, there are no leaves in the pool, and the lawn has been cut. Rather than bathe the dog themselves they bring it to the groomers. Why cook tonight, why not go out for dinner, leave the kids with the sitter and it is off to dinner (don't forget to tip the server and the valet). On the way home, perhaps, stop for a special treat from the local coffee house. Then it is off to bed to dream about that next family vacation.

What happens when people begin getting taxed more than they are now? The instant reaction is to cut spending. Whether or not the new tax rate actually causes the taxpayer financial difficulty is inconsequential. If the perception is that they have less money, they will make cuts. The cuts are made from whatever is not considered essential. These industries typically consist of the average Obama voter, the service industry, which has become the majority of our nations output.

What has been missed is that higher taxes change more than the way people do business, it changes the way people live. This is the effect of what Obama's supporters seem to have forgotten. Instantly, the gardener, pool cleaner, house cleaner, and groomer are gone. Some kids will be pulled out of private school since the parents are already paying enough for public school. Do you think they'll still spend 5 bucks for a coffee or do you think they'll get something at home?

Let's not forget the big bad corporations our new President intends to increase taxes on. Well, any publicly held company has a duty to it's shareholders to act in their best interest. Therefore any decrease in profitability must be reconciled quickly. Simply put... Corporations don't pay higher taxes, consumers pay higher prices. If a company is taxed 20 cents per unit they will simply increase the price by 20 cents, perhaps more, fuel companies tend to take tax increases and pass them off exponentially.

Any tax increase affects us all; republican, democrat, green, or other, equally, and works to stir the downward spiral of the economy. Mr. Obama's tax increase must not become a reality, we all depend on it.

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