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$3.5 Trillion Tax Hike In Obama’s Budget

From the website of the Republicans in Congress, GOP.gov:

In this April 15, 2009, file photo, about 4,000 people gathered on the south steps of the Oklahoma state Capitol in Oklahoma City, as part of a National Tax Day Tea Party to protest excessive government spending.

The President’s FY 2011 Budget: Record Debt, Deficits and Taxes

… The budget spends $3.83 trillion in FY 2011 and contributes to a record deficit of $1.55 trillion this year. The following is a summary of the record debt, deficits, and tax increases included in the President’s budget, as well as a brief description of some of the budget’s main items.

Debt: The President’s budget would dramatically increase the national debt, more than doubling the public debt from $7.7 trillion today to $18.57 trillion in 2020. Under the President’s budget, from today until the end of 2010, public debt would rise by $1.53 trillion or 20 percent. By 2020, the public debt would be 77.2 percent of gross domestic product (GDP), the highest total since just after World War II. By contrast, under current law, public debt would be $15.02 trillion in 2020, meaning the Obama Administration’s budget would incur $3.55 trillion more in debt than doing nothing. When President Obama took office in January, 2009, CBO estimated that the public debt in 2019 would be $9.3 trillion.

Deficits: Under the President’s budget, the FY 2010 deficit will reach a record high of $1.556 trillion or 10.6 percent of GDP, which is $143 billion or 10.1 percent larger than last year’s record deficit. Over the next ten years, annual deficits average $917 billion every year-twice as high as FY 2008’s then record deficit of $458 billion. The smallest deficit under the President’s plan would be $706 billion in 2014. However, the deficit would quickly increase again, before reaching over $1 trillion in FY 2020. Between FY 2011 and FY 2020, annual deficits would total $8.53 trillion. According to CBO, if current law were not changed the deficit would be $6.01 trillion over the same time span — $2.5 trillion less than it would be if the President’s policies are enacted.

Tax Increases: The President’s budget would also increase taxes by a record $2.308 trillion over ten years. The budget increases a broad range of taxes that would affect every taxpayer, including:

  • $969 billion in tax increases by allowing the 2001 and 2003 tax cuts to expire for individuals earning above $200,000 (single) or $250,000 (married). This includes a provision limiting tax deductions on charitable gifts to 28 percent, which one formula has estimated could decrease private charitable donations by $9 billion a year.
  • $743 billion in new taxes associated with a government takeover of health care.
  • $122 billion in higher taxes related to changes in the U.S. international tax rules and enforcement.
  • $90 billion in tax increases imposed on financial institutions, referred to as a "financial crisis responsibility fee."
  • $59 billion in tax increases associated with the repeal of last-in, first-out inventory accounting practices.
  • $39 billion in increased taxes related to the repeal of tax credits for the production of natural gas, oil, and coal fuels.
  • $24 billion in tax increases on carried interest, doubling the tax rate from 15 percent to 39.6 percent.
  • $262 billion in additional, miscellaneous tax increases over the next ten years.

In addition, the President’s budget ignores any new taxes related to the Democrats’ national energy tax proposal, known as "cap and trade." Instead, the budget merely states that, "A comprehensive market-based climate change policy will be deficit neutral because proceeds from emissions allowances will be used to compensate vulnerable families, communities, and businesses during the transition to a clean energy economy."

Thus, the President’s budget ignores the $843 billion in new taxes that CBO estimates the House-passed bill would impose on every American and assumes that redistributive spending programs will make each whole.

If these additional taxes were included, the President’s budget would impose $3.15 trillion in tax increases over the next ten years

This truly is insane. But there is method in the madness.

For it just goes to show that all of Mr. Obama’s so-called ‘reforms’ have really only one goal: to have the federal government take more of our money, so that it can take more control of our lives.

In a way, the Democrats and their lickspittle media minions are right. The Republicans should not just be the ‘party of no.’

They should be the party of ‘HELL NO!’

This article was posted by Steve on Wednesday, February 3rd, 2010. Comments are currently closed.

3 Responses to “$3.5 Trillion Tax Hike In Obama’s Budget”

  1. Petronius says:

    SG: “really only one goal: to have the federal government take more of our money, so that it can take more control of our lives.”

    Just so. It’s certainly not about economic growth. Not about jobs. Nor about prosperity. It’s about control. And destruction.

  2. proreason says:

    $3.83 Trillion. It’s the tip of the iceberg. He hasn’t even warmed up yet.

  3. Confucius says:

    I never understood the stigma of “no.”

    “Yes” is the language of trouble. It can result in:

    –an unwanted pregnancy (especially problematic during a presidential campaign)
    –an STD
    –someone staining your pretty blue dress
    –credit card debt
    –an addiction
    –prison time
    –Obama as president

    See? So, just say “no.”

    Who knows. It could become the new black.

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