Obama's Tax Policy (The explanation you must read)

MSNBC's Keith Olbermann provide the best rationale for Obama's tax policy on his show Countdown.

It is lengthy, but well worth the read....

Senate Republican whip, Jon Kyl, expressing the honest GOP position when he said of the budget this weekend, quote, “It is terrifying in the policy implications.”

So, what exactly are the policy implications of Mr. Obama‘s new direction for America monstrous enough to terrify you as senators? Perhaps it has to do of where the money is going.

The U.S. government—us, we the people—we will set aside $634 billion over 10 years, as a downpayment toward the ultimate goal that everyone, every American, will have health coverage, including the 46 million and counting Americans—men, women and children—who lack coverage as well as all the Americans who would otherwise go bankrupt paying for future health coverage.

And yes, America will pay for contraceptives, taxpayer dollars for evil condoms, and horrible birth control pills. Contraceptives that states already have the option of providing for low-income fornicators. Fornication that otherwise would lead to untold, unwanted pregnancies, unwanted babies, unwanted abortions, unwanted drains on families, unwanted drains on—yes, the national economy.

The Congressional Budget Office estimating $200 million saved over five years, thanks to—yes, contraceptives and family planning.

Or could this be about the kids receiving massive increases in government scholarship and lending, from college down to early head-start? Or could it be about the poor in line for everything from help weatherizing their homes to save on energy costs, the average family saving an estimated 350 bucks a year on energy cost, to federal assistance expanding Internet access to remote rural areas of the country?

If all those sound like worthy investments, perhaps Republicans‘ terror stems from the source of this money.

Is the president planning to end three decades of growing income disparity, tilt the playing field back towards the middle-class?

Is Obama really trying to turn America into a country that taxes the rich people? Oh, yes! Hell, yes!

Starting not now in a recession, but in 2011, rich people will qualify for fewer tax deductions, so few that the functional tax rate might even rise to something like yours. And capital gains, money that you make any way other than working for it. That will now get taxed not at 15 percent but at 20 percent.

Oh, the humanity.

Oh, and hedge fund managers will have their tax rates raised to the astronomical rates now being paid by hedge fund manager secretaries.

The rich will also get less in Medicare benefits. You heard me, they get Medicare benefits.

What about the small businesses that will get crushed by these tax hikes? That part is true, tax hikes are on the way for every single small business, except 98.1 percent of them.

But hold on, House Republican Leader Boehner says the budget raises taxes on every American. How? Because now, energy suppliers will pay a fee, $646 billion over 10 years for exceeding carbon caps, and therefore, they might in turn raise prices to the consumer.

But in reality, those carbon fees will not only offset the price hikes, they will be used to cut payroll taxes for every single American on a payroll, not to mention $15 billion a year to research alternative energies—oh, and to lower greenhouse gases, just might slow global warming thereby saving the planet. No planet and the economy will really slow down, and suddenly.

Also, coughing up money, toxic waste polluters: $17 billion over 10 years.

Agribusiness, not small farmers, will lose its $500,000 subsidies, just like banks will lose $4 billion in government payments for making student loans.

Oil and gas will lose $35 billion in payments and loopholes.

Insurance companies and pharmaceutical companies are losing billions in wasted federal payments.

You get the picture. And that, in short, is just some of what terrifies the GOP.

That is what lies behind the budget debate, a debate Republicans have every reason to keep fighting, despite the fact that they‘ve already lost it—on Election Day.