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| Obama's Budget: Almost $1 Trillion in New Taxes Over Next 10 yrs, Starting 2011 |
| 2009-02-26 |
| President Obama's budget proposes $989 billion in new taxes over the course of the next 10 years, starting fiscal year 2011, most of which are tax increases on individuals. 1) On people making more than $250,000: $338 billion - Bush tax cuts expire $179 billlion - eliminate itemized deduction $118 billion - capital gains tax hike Total: $636 billion/10 years 2) Businesses: $17 billion - Reinstate Superfund taxes $24 billion - tax carried-interest as income $5 billion - codify "economic substance doctrine" $61 billion - repeal LIFO $210 billion - international enforcement, reform deferral, other tax reform $4 billion - information reporting for rental payments $5.3 billion - excise tax on Gulf of Mexico oil and gas $3.4 billion - repeal expensing of tangible drilling costs $62 million - repeal deduction for tertiary injectants $49 million - repeal passive loss exception for working interests in oil and natural gas properties $13 billion - repeal manufacturing tax deduction for oil and natural gas companies $1 billion - increase to 7 years geological and geophysical amortization period for independent producers $882 million - eliminate advanced earned income tax credit Total: $353 billion/10 years |
| Posted by:Steve White |
| #12 video showing how he's better then us peons |
| Posted by: 3dc 2009-02-26 21:11 |
| #11 I note the static analysis used for these "estimates". They are not estimates at all, they are wishful thinking. Tax collections depend disproportionately on reported income by high-income earners. This is extremely volatile. The CBO estimates on reported income are by their nature obsolete, based on previous years high levels of reported income. We certainly won't see that again for a long time. The CBO made the same gross errors in their revenue estimates for the 2001-2003 recession. And then there is the fact that tax increases suppress reported earnings (and tax cuts increase them), so a tax increase NEVER collects as much as a static analysis implies. |
| Posted by: buwaya 2009-02-26 21:00 |
| #10 Where did I hear it all before? |
| Posted by: g(r)omgoru 2009-02-26 20:27 |
| #9 Better learn to enjoy recession, we're going to be in one for a LONG time. |
| Posted by: DMFD 2009-02-26 19:57 |
| #8 How to make money off of any resulting shifts that might cause, I don't know. |
| Posted by: Thing From Snowy Mountain 2009-02-26 19:33 |
| #7 And I suspect that sort of thing will be a lot easier in flyover country than on the coasts Blondie. |
| Posted by: Thing From Snowy Mountain 2009-02-26 19:32 |
| #6 Don't worry, the productive people will stop working soon enough. Or find ways to make sure they are about 10k or so under the cutoff line (which will probably be less than the proposed 250k.) |
| Posted by: Cornsilk Blondie 2009-02-26 18:56 |
| #5 It's call three card monty. Here's the point. "The âtop 2%â includes a family of two earners making $250,000 per year ⦠but it also includes the super rich such as Warren Buffett and Bill Gates. $250,000 to $40 billion. Thatâs a pretty big gap for a space of just 2%. Of course, most of the uber-wealthy do not pay income taxes but rather pay capital gains taxes, generally because to become that rich you either inherited it, donât actually make an âincome,â or own huge amounts of stocks and bonds and periodically sell. Those types of disbursements - set up by very top of global wealth - are generally taxed at a 15% capital gains rate and itâs why Warren Buffett is wrong on taxes when he says he âpays less than his secretary.â Amid the frenzy to be âfairâ and have the ârichâ pay more, letâs remember one thing: income taxes are paid by those who make an income. In other words, they work. The majority of the highest income tax payers in America arenât the Forbes 400, but rather successful businesspeople and small business owners who take an income and not stock, tax free municipal bonds, etc." Let's destroy the means of production while we seize them. /sarcasm off |
| Posted by: Procopius2k 2009-02-26 18:47 |
| #4 On an agreed upon date, not very far off, every opponent of this administration and it's insane socialist agenda should simply fail to go to work. Don't worry, the productive people will stop working soon enough. |
| Posted by: AzCat 2009-02-26 18:40 |
| #3 The number that matters isn't the annual deficit, it's the cumulative debt. As debt goes up, interest payment consume an increasing proportion of revenues, leaving progressively less to be spent on other things. High debt levels give governments a vested interest in inflation and the need to keep interest rates artificially low. I can't find an estimate of interest rates paid by the gov in future years, but I doubt they are realistic and hence these projections probably meaningless. |
| Posted by: phil_b 2009-02-26 17:37 |
| #2 I just took a look at the summary. The budget projects out to 2019. Deficits shrink to $533 billion for 2013. They start to rise again thereafter. $533 billion is the lowest annual deficit projected for the next 10 years. The budget also assumes that nominal GDP is flat for 2009, up 3.4% in 2010, and averages 5.0% growth from 2011 to 2019. The Budget is entitled "A New Era of Responsibility" and the first chapter is "Inheriting a Legacy of Misplaced Priorities". |
| Posted by: DoDo 2009-02-26 16:26 |
| #1 CALL to ACTION: We must gain the attention of Washington immediately to avert this disaster from forver changing our nation. I propose a National Strike. On an agreed upon date, not very far off, every opponent of this administration and it's insane socialist agenda should simply fail to go to work. A national Blue Flu. No demonstrations, no violence, no civil disobedience, just millions of people not working that day! And when they drive, headlights on! Let the politicians in Washington get a sense of the aner and frusration the actual producers of American feel at being robbed to pay or bailout those who don't contribute to our national prosperity but who would take ours by force of law. |
| Posted by: CALL to ACTION 2009-02-26 16:08 |