Obama’s New Tax Welfare by Peter Ferrara on National Review Online

http://article.nationalreview.com/?q=MDMzMzRlOTJhNjdmYWI1YWY3OTg3MTVjNjZiNjI5MjU=

Barack Obama says he plans to cut taxes for 95 percent of American workers. That sounds terrific, but there are three problems. One, it is meant to draw attention from the real core of the Obama tax plan: proposed increases in every major federal tax. Two, the structure of the cuts will create perverse incentives. And three, many of the people receiving "tax cuts" don't pay taxes to begin with, meaning they'll be in effect getting welfare.  [...]

Finally, Obama's "tax cut," if he follows through with it, will often be a simple giveaway. As it stands right now, roughly one-third of income earners pay no federal income taxes. Many actually receive payments from the income-tax system — these payments total 3.8 percent of all federal taxes paid. Simple arithmetic holds that if one-third of earners don't pay income tax, it's impossible to cut taxes for 95 percent of earners.