Elkhart considers itself the “RV (recreational vehicle) capital of America.” Sadly for the cheering folks behind the President in the press conference, his stimulus plan may ultimately do them more harm than good. The President chose Elkhart likely because his advisors thought it a timely fit in today’s economy. According to the Wall Street Journal, Elkhart has shed 8,000 jobs.
Introducing the President at the rally was local Ed Neufeldt. Mr. Neufeldt was laid off when his employer, Monaco Coach, closed three of its RV factories. A centerpiece of Obama’s plan is to give many Americans a tax cut, generally between $500-$1,500 per year. Those cuts are said to go to 95% of American taxpayers. The problem for much of Elkhart, Monaco Coach and Mr. Neufeldt is that they likely make most of their bread and butter off the 5% that Obama wants to tax heavily.
Menatime, the New York Times this weekend detailed the other side of what’s likely coming: the tax hike on the wealthy. The paper noted that taxpayers making $500,000-$1 million per year will see an average tax increase of $19,700 per year. Those making more than $1 million are really going to get hit, paying an average of more than $175,000 per year in extra taxes.
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