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Obama To Tax Oil, Limit Mortgage Deduction

From a ground preparing Associated Press:

Obama picks fight on taxes, big or just symbolic

By Stephen Ohlemacher, Associated Press
July 1, 2011

WASHINGTON – President Barack Obama is renewing an old fight with the business community by insisting that $400 billion in tax increases be part of a deficit-reduction package. His proposals have languished on Capitol Hill, repeatedly blocked by Republicans, often with help from Democrats.

Mr. Obama seems attracted to certain numbers. The only spending cuts we have gotten from him is the recent $400 billion cut from the Pentagon’s budget, and the $400 billion more he wants to cut from defense spending.

But in any case, Obama actually wants a $600 billion tax increase. As we should discover a little later in this article.

Some would raise big money. Limiting tax deductions for high-income families and small business owners could raise more than $200 billion over the next decade. Others are more symbolic, such as scaling back a tax break for companies that buy corporate jets

Isn’t it funny how Mr. Obama and the media have focused on the corporate jets ‘tax break.’ Meanwhile, he wants to limit the mortgage deduction for ‘rich people,’ when the housing market is collapsing before our very eyes.

The White House has identified about $600 billion in tax increases it wants over the next decade. About $400 billion of them were offered as part of deficit-reduction talks led by Vice President Joe Biden. That would be paired with more than $1 trillion in spending cuts.

So now we are up to $600 billion in tax increases. By the way, notice how we never hear any details about "spending cuts," at least apart from the military. In reality $800 billion of these spending cuts are going to come from reductions in defense spending.

Which means our soldiers and their families will be back on food stamps before you know it.

Some of the tax proposals are vague and budget experts have yet to calculate just how much they would raise. For example, limiting deductions for high-income families and small businesses could raise anywhere between $210 billion and $290 billion, depending on what threshold is established as high income.

Increasing taxes on small businesses will do wonders for the economy. (And, lest we forget, just a few weeks ago Mr. Obama was telling us what a friend he is to small business.)

Obama is proposing to eliminate $41 billion in tax breaks for oil and natural gas companies, raise taxes on investment fund managers by $21 billion and change the way many businesses value their inventories for tax purposes. The change in inventory accounting would raise an estimated $70 billion over the next decade, hitting manufacturers and energy companies, among others

Increasing taxes on manufacturers and energy companies will also do wonders for the economy.

Obama says he is proposing a balanced approach that spreads the pain among people who rely on government services and those most able to finance them…

How come never hear about what is going to cause the "pain among people who rely on government services"? 

Among the tax increases proposed by the White House and the amount they’d raise over the next decade:

Limit itemized deductions, including those for charitable contributions and mortgage interest, for families and small business owners making more than $500,000

Notice that this is the first mention of changing these deductions in this article. And it is buried in the 16th paragraph of the story. And once the camel’s nose is under the tent, that $500,000 threshold will be whittled down to $0 before you know it.

• Change the way businesses value their inventory…

• Increase taxes on investment fund managers, mainly hedge funds and private equity firms…

Eliminate about $41 billion in tax breaks for oil and natural gas companies. Obama has called for eliminating tax breaks for all oil and gas companies every year since he took office in 2009

In other words, Mr. Obama doesn’t just want a tax hike on oil and gas, he wants a retroactive tax hike on oil and gas.

And once again we have no mention whatsoever of any spending cuts.

This article was posted by Steve on Friday, July 1st, 2011. Comments are currently closed.

8 Responses to “Obama To Tax Oil, Limit Mortgage Deduction”

  1. P. Aaron says:

    El Presedente has this punishment attitude regarding those that run businesses. Chavez dreams and Castro-esque wishes.

  2. proreason says:

    I’m shocked that Obamy’s “revenue enhancement” ideas seem to be bullets aimed directly at the American way of life. And I thought he was such a patriot.

    • tranquil.night says:

      “bullets aimed directly at the American way of life.”

      Way late for me to write, but it’s a real value having your straight-shooting back as well, Pro.

    • Rusty Shackleford says:

      He also believes that people who make $250,000 a year are all jet owners. Hm, something he’s smoking must have addled his brain as a child. But then, ignorance comes in all income brackets. He’s stolen his millions and will, in the future, find himself a nice, comfy, non-labor-intensive post in the UN in the years to come. However, he will also find a very precarious lifestyle after Moochelle dumps him.

      There is the world as Hambone sees it; the world as he wants it to be; and reality. None of which have anything to do with each other.

    • Petronius says:

      Pro has nailed it again.

      By demonizing “corporate jets” Nerobama attacks our entire aviation industry, and so attempts to add another scalp to his belt.

      Most countries subsidize their aviation industry as a matter of national pride, because aviation is a way to fly the flag. But there will be no pride of place for American aviation. Not on Nerobama’s watch.

      His proposed taxes will never generate the heralded $600 billion in revenues.

      Instead, US businesses will scale back, shift production, or move to foreign countries, and the American investor class will adjust away from entrepreneurship and into tax shelters.

      But then his real purpose is not to generate revenues for the government — rather, it is to take America down a notch. Or “punishment” as P Aaron calls it.

  3. BigOil says:

    It’s the socialist two-legged economic stool – increase taxes and foment class warfare.

    At least if Barry stands firm on the tax increases, it gives us a sliver of hope that Republicans have cover to not raise the debt ceiling. Of course, it is a big assumption that spineless Republicans would ever find a backbone.

  4. Papa Louie says:

    When you are in the middle of a housing crisis worse than the great depression it makes sense to discourage home buying by reducing tax deductions for mortgage interest. And limiting deductions for charitable contributions at a time when charity is badly needed also makes sense — if you are a big government progressive from Uranus!

  5. BillK says:

    So the oil companies will end exploration in the US, costing hundreds if not thousands of jobs, along with those that support those (largely remote) workers, increasing our reliance upon foreign oil, and will raise prices to recoup any other increased costs.

    Yet it’s supposedly Republicans who are sabotaging the economy.

    Watch for $5 gas and a doubling in food prices, coming soon…

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