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$3 Dollars In Taxes For Every $1 Dollar Cut

Here is a more straight-forward presentation of the latest details of Mr. Obama’s stimulus jobs bill, from the Washington Times:

Obama to call for broad tax increases

Wants three dollars in taxes for each dollar of new cuts

Sunday, September 18, 2011

President Obama on Monday will propose a deficit plan that calls for about three dollars in new tax increases for every dollar in additional spending cuts as he seeks to put his imprint on the ongoing talks over reducing the government’s staggering debt burden.

Remember way back a couple of weeks ago when Obama was telling us he was going to do three dollars in cuts for every dollar in tax increases? That was his "grand bargain" that Speaker Boehner refused to accept.

We now see how honest that was.

In a plan his advisors described as his ideological vision, rather than a compromise offer to the GOP, Mr. Obama will also threaten to veto any plan Congress sends him that tackles entitlements but doesn’t include tax increases, which he will argue is central to a "balanced" approach…

All of Obama’s visions are ideological. That is the problem.

Mr. Obama will argue his plan totals $4.4 trillion in deficit reduction, though $1.1 trillion of that comes from war savings all sides agree was going to happen anyway, another $1.2 trillion that has already been enacted, and more than $450 billion in tax increases he proposed last week — and has already accounted for in new spending. Another $430 billion comes from lower interest payments because of the potential lower debt.

In other words, once again half of Mr. Obama’s ‘savings’ was never going to be spent anyway. He pulls these same stunts over and over again.

That means in terms of actual new proposals, the president’s plan totals about $1.2 trillion, of which the lion’s share comes from his long-standing vow to raise taxes back to Clinton-era rates on the top income brackets.

That is, Obama is counting tax increases as ‘savings.’ In other words, tax hikes are now the same thing as spending cuts – at least in the magic world of Barack Obama.

The rest is $580 billion in reductions to formula-driven entitlement programs, though officials on Sunday wouldn’t detail what those cuts were, saying the specifics would be released Monday.

We know what these will be. An increase on the Medicare tax for those making over $200,000. While at the same time their benefits will be reduced.

Those $580 billion in newly proposed cuts are dwarfed nearly three-to-one by the $1.5 trillion in additional taxes the president wants to see

And it is even worse than that, since much of the so-called spending cuts are illusory.

This article was posted by Steve on Monday, September 19th, 2011. Comments are currently closed.

6 Responses to “$3 Dollars In Taxes For Every $1 Dollar Cut”

  1. David says:

    I ran some numbers last night using the 2009 IRS data. What I cam up with is for the different brackets at AGI of $1mill or more their total AGI is approximately $600 Billion. Now I made some assumptions of course ( the median of the bracket was what I multiplied times the total number in that bracket). However, I don’t see how this could get anywhere close to 1.5 trillion tax increase? 600 Billion is if from a 100% tax rate. Does anyone know where his numbers are coming from?

  2. GetBackJack says:

    As Obama said, it’s Math.

    Which they cannot do. Academics all and they cannot do simple math.

    It’s no longer a question if “If” our nation s going to be financially ruined. It is a question of when the hammer falls. The math is inescapable, despite certain learned scions who claim we can always print more money.

    Even if the Republicans manage to pull off the most stunning upset in the History of elections and staggeringly get out of their own way to put a Republican in the White House next time, our ship is already hulled. We’ve taken on too much water for the pumps and repair crews to pull it off.

    We’re sinking. At least the nation I knew is sinking.

    My question is, since the Federal Reserve is no more Federal than Federal Express and is owned by a coterie of member banks who profit from issuing us our currency (in contrast to our Constitutional money, free of interest), what massive behind-the-scenes Game is being played out to ruin their most precious commodity? You’re gonna tell me that The Bankers are going to stand by and allow 532 elected knuckleheads destroy the most profitable scam ever established, ruin their most valuable product and crash their distribution system?

    Really?

    I think the (blank) not.

    That doesn’t compute.

    And Obama and his Progressive Posse only have power and weight when it comes to buffaloing the press, Christians, white people, the middle class and sensible people who believe in the Constitution.

    But next to the power bankers wield? ???? ???????

    I may have taken one or two blows to the head without my helmet but I’m not that far gone.

    What we’re seeing unfold is such a bigger Game that our puny outrage is merely trite in comparison to the global overhaul underway.

    All I can tell you for sure is that when they come for your guns, make sure to give them the ammo, first.

  3. Tater Salad says:

    Should America tax the rich?

    “Working people are taxed between 28 to 35% federal income tax.

    People who do not work and have investment capital (unearned income) are taxed at a 15% rate from these investments.

    Remember: The money used to buy these investments has already been taxed at 28 to 35% and will again be taxed at 15% when it is re-invested and there is a return on the investment. Think of it as buying a used car. It has been taxed when bought new and is again taxed when it is sold as used and continues to be taxed when re-sold everytime.

    If everyone wants “the rich” to pay more in taxes on unearned income, consider this.

    1. Raising the tax rate on un-earned income from 15 to 25% or higher will place the stock market and investments “at risk” since possible investors might not want to invest at these new higher rates because of the return they would receive on their investments.

    2. By taking this route and raising capital gains rates (15 to 25%) will place retired seniors and their 401k’s at risk again. This is money they live off of in their retirement years. There could be “less investment” in the stock, mutual fund markets because of less returns on these investments.

    Question: Are we willing to do this? People/taxpayers/retirees built their retirement years around their 401k’s. Your call !

    As for the “Buffett Tax Plan” that Barack Obama is pushing. Buffett is entitled to pay himself a salary from his investments instead of “just receiving” these unearned income monies. But he won’t do this! Why? He wants to ONLY pay the 15% rate to the government instead of the 28 to 35% rates if he drew a salary. Oh the sounds of a hypocrite one can say!


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