« | »

Obama Wants To End All Tax Deductions

From an approving New York Times:

Obama Weighs Tax Overhaul in Bid to Address Debt

December 9, 2010

WASHINGTON — President Obama is considering whether to push early next year for an overhaul of the income tax code to lower rates and raise revenues in what would be his first major effort to begin addressing the long-term growth of the national debt.

While administration officials cautioned on Thursday that no decisions have been made and that any debate in Congress could take years, Mr. Obama has directed his economic team and Treasury Department analysts to review options for closing loopholes and simplifying income taxes for corporations and individuals, though the study of the corporate tax system is farther along, officials said.

The objective is to rid the code of its complex buildup of deductions, credits and exemptions, thereby broadening the base of taxes collected and allowing for lower rates — much like a bipartisan majority on Mr. Obama’s debt-reduction commission recommended last week in its final blueprint for reducing the debt through 2020.

Apparently, the original headline for this New York Times article was: ‘Tax Code Should Be Simplified, Obama Aides Say.’ But this has nothing to do with ‘simplifying’ the tax code. Mr. Obama just wants to wring more money out of the US taxpayer by doing away with any and all of the few remaining tax deductions.

Of course, all of this will be done in the name of lowering the rates for everyone. But somehow, when all is said and done, the rates will never be lowered.

Doing so would offer not only an opportunity to begin confronting the growth in the national debt but also a way to address warnings by American business that corporate tax rates and the costs of complying with the tax code are cutting into their global competitiveness.

Anyone who believes that Mr. Obama will do one single thing to help American business has not been paying attention for the last two years. If Mr. Obama and the Democrats want to help, they could cut the corporate tax rate — which is the second highest in the world — tomorrow.

Mr. Obama signaled his inclination in off-the-cuff remarks on Wednesday as he was defending the tax cuts deal negotiated with Congressional Republicans this week. “We’ve got to have tax reform,” he said

Mr. Obama wants to ‘reform’ taxes just like he ‘reformed’ healthcare and just like he ‘reformed’ the financial industry. He wants to reform it until it is so broken that he and his Democrat cronies will have to fix it — their way.

Administration officials and lawmakers in both parties also took note last week of the bipartisan show of support within the fiscal commission for changes of the type being considered by Mr. Obama. That suggested a potential break in the long-solid Republican wall of opposition to anything that smacked of a tax increase.

Rather than increase individual and corporate tax rates to raise more revenues, a majority of the panel proposed eliminating or reducing many of the popular tax breaks for businesses and individuals that cost $1 trillion annually and using the additional revenues to lower rates and reduce deficits

Again we have the lie that lower taxes "cost" the government money. It’s not their money until we give it to them. So it costs the government nothing.

Notice, too, that we never hear how much higher taxes cost businesses, "cost" the taxpayer or business or the economy.

With tax breaks ended or restricted in return for lower rates, businesses and individual taxpayers would know that for each credit or deduction they wanted put back into the code, their marginal tax rates would go up by an amount sufficient to make up the revenues that would be lost

We have seen this dance before, as even The Times recognizes later on, towards the bottom of this typically verbose article:

Next year will be the 25th anniversary of the previous overhaul of the income tax code that lowered rates and wiped away many tax breaks in return

Did you ever think you would see the New York Times extolling the Reagan tax cuts? Or Mr. Obama claiming he wants to emulate them?

Well, you can be quite sure that they don’t really mean it. They are only using the example of the Reagan tax cuts as their latest ploy to do away with the few remaining deductions left to taxpayers.

For in order to get his tax cuts back in the 1980s, Reagan had to let Congress take away many important deductions and other income safeguards, such as ‘income averaging.’

A few years later, however, the rates crept back up. But the deductions were gone forever. And that is exactly the outcome that is being sought here.

While the overhaul of a quarter-century ago raised taxes for many corporations, the legislation was designed to be “deficit neutral” — it neither increased nor reduced the government’s tax collection over all. But people in both parties agree that the next tax-overhaul effort would almost certainly have to raise revenues to address the nation’s growing fiscal problems

What dangerous nonsense. The government does not have a lack of tax revenue problem. It has a spending problem. We need to starve the beast, not fatten it more with more tax revenue.

But we will never get anywhere as long as Congressmen are allowed to use the tax code to reward their constituents and punish their enemies. The tax code will never be fair as long as it is a political tool, in fact, Congress’s most powerful tool.

Either we should have a flat/fair tax rate of some percent for everyone across the board. Or we should allow taxpayers and businesses every opportunity to hold on to their money anyway they can.

This article was posted by Steve on Friday, December 10th, 2010. Comments are currently closed.

12 Responses to “Obama Wants To End All Tax Deductions”

  1. oldpuppydixie says:

    As long as tax revenue has one purpose only–vote buying, the tax paying public can look forward to NOTHING but getting screwed in ever increasing amounts. I wonder if DC politicians would be interested in exchanging a new tax code for TERM LIMITS of say, 8 years, after which no politician would be permitted to have ANYTHING WHATEVER to do with politics/public office or the public sector again! Gee…let me guess…

  2. 64dodger says:

    I am all for it as long as we lower the tax rate to a 10 percent flat tax that EVERYONE has to pay whether rich or poor. No exceptions. Can’t raise the rate unless there is a 2/3 approval from both the Senate and the House.

  3. MinnesotaRush says:

    o-blah-blah’s “reformed tax form”:

    Name:_______________________ SSN: _________________
    How Much Did You Make This Year? $___________________
    Send it in!

    See how easy! Whatta guy!

  4. proreason says:

    more Theatre of the Absurd

  5. Mae says:

    Forget the 10% flat tax. Make it 5% for everyone from the first dollar and cut expenditures. Chief Tax Reformer SOB Putz would like to inch it up to 50% for all those making over $100,000 with tax shelters for his pals only. Man, how I despise his thinking processes.

  6. GetBackJack says:

    Good Lord! I agree with Obama!?! Has there been a pole shift?

    (Of course I mean do away with the entirety of Title 26, the Federal Reserve and the Internal Reveneurs, and I assume that’s anathema to any and every Democrat)

  7. Liberals Demise says:

    What a ‘Meat Puppet’ he is.
    Just more Mussolini posturing if you ask me.

    What a joke!!

  8. Natural Born Citizen says:

    M-Rush… BHO’s personal tax form!

    “o-blah-blah’s “reformed tax form”:

    Name:_Barrack/Barry____SSN: _XXX-XX-XXXX – or SSN-#2 (from dead Connecticut resident)_
    How Much Did You Make This Year? $___400K for POTUS/1M for kids book… (Michelle gives me an allowance of_$50 per week.
    Send it in!

    See how easy! Whatta guy!”

  9. tranquil.night says:

    Headlining HotAir from Right Scoop: http://hotair.com/archives/2010/12/11/van-jones-we-are-coming-for-the-media-and-thats-not-all/

    Exactly right, and relevant to both the compromise debate and speech crackdown.

    “Mark Levin is so dead on the money with this that it pathetic. The radical message is being set up to be th moderate mainstream message, which will leave the conservative message looking extreme, especially to who aren’t paying attention. This is why we need the Republicans to stop behaving passively like gentlemen opening the door for a nice lady, and to put on the camo and arm themselves with message cannons. The only way the public will resist this radical message is if Republicans give them a choice and start calling these people out who they are, and with a very loud voice.”

    The consequences of letting the Bush tax plan expire might be pretty severe, but once everybody is feeling the effects, it doesn’t matter if they say it’s our fault, people are just going to want their taxes cut. It’ll be our tax reform plan with the wind at it’s back and Obama in the corner. The Republicans need to get a clue, grow a pair and chop the head off the snake (politically) before he slithers away again.

  10. Liberals Demise says:

    Uh……..who’s the party of “NO” now? Who is it that won’t meet half way?
    The (D) never passed a tax that ever went away. To them it’s, “Get your hands off our golden teets.”

    “Please suh….may I have more?”

  11. Chuckk says:

    In other words, Obama wants more money for the government to buy votes and less for the people who actually earned it. Maybe we’ll see Pigford III soon.

  12. canary says:

    NY is really pushing the UN Agenda 21 sustainability at tax-payers cost. The ICLEI is quietly being implimented
    throughout the U.S.
    Bloomberg & the ICLEI

    And you can bet the new Mosque at 9/11 Ground Zero is going to get the 500,000 government funding because they are following the improving a building. They will also get the Government Blue Ribbon funding for the school which will be a part of it. They will most likely let Habitat for Humanity ran by builders who come up with the many forms and subtitles of getting the stimulus money. Infrastructure is a really lose term, and the water pipes for the pool will be paid for too. And Bloomberg will get federal stimulus money from aiding the mosque to spend on other things, buses, etc.

    What I see happening is the non-profit organizations that follow the Obama agenda as in public housing, conservation, promote sustainability, are getting federal stimulus money.

    ***LINK for everyone to learn & stop Obama’s ICLEI sustainability agenda where you live.

    ICLEI: Research, Education, Action andRisks at the Local Level–Basic First Steps

    So?…..Will Union members still get tax deductible membership dues?

« Front Page | To Top
« | »