It was such a timely thing that Joe the Plumber appeared on public before the election day. Thanks to him, Obama's Economic plan at its best was unmasked. O's plan sounds really heroic when you hear it for the first time. Unfortunately though, if you seriously analyze it you will see the socialistic principle in it. In such a crucial time as this, economically, it is imperative that the American people look at O's plan with an intention of understanding what he is really saying instead of accepting it at its face value.
O's Economic plan focuses on raising the already high tax rate of those businesses with an annual income of $250-$300. He plans on taxing these said growing small companies 35%- 39%. Why is this bad? Joe the Plumber wants to buy the plumbing business that he has been working for for 10 years. He wants to buy it for the purpose of fulfilling his American dream and that's to earn more money than what he is already earning now. That's to put it in very simple terms. Now, in O's plan once his plumbing business earns $250- $300 annually, the government (if O wins) imposes a very high tax rate of 35-39%. The high taxes that Joe would be paying the government will basically help subsidize those who are not earning as much as he, who also are going to be granted tax cuts. Now, why is this wrong? Let's face this squarely. First of all, it is unfair for Joe the Plumber to end up paying for what others (of lower income) are not able to pay. I'm sure that Joe wants his earning to benefit himself and his family. Second of all, high tax rates dissuade small business entrepreneurs. None of the small businesses would want themselves to grow in that condition. However, if the government lowers the taxes of the small businesses, many of them would be motivated to grow and provide more jobs to the public. So then what is good about O's plan? Is it because it sounds like it encourages people to share their wealth with others of lower income? It definitely sounds very generous, but what makes it a rotten idea is that it forces people of higher income to share their wealth with those in the lower income bracket. Like what I've said before, it is one thing to share our wealth to the poor (through charity and NGO's) freely and it's an absolutely a different thing if the government enforces them to do so.
Being that we have a family business that my husband has been working so hard to grow for almost 10 years, I can easily identify Joe the Plumber's concern. My husband would have been motivated to grow it bigger had it not been for the high taxes that the government is already imposing on businesses right now. See, if our business is bigger we could have created more jobs and so help lower the unemployment rate in the country. Not that the employment rate is bad because the fact is, it is very low compared to other countries. The point is give these small businesses a motivation to grow by lowering their taxes. In return, they would be able to fulfill their American dreams and create more jobs.