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
(Source: ABC News)
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12 Responses
Yes, it is really a horrible for those who have to live on a meagerly salary of just $20,000 a month, to have to pay some more taxes, isn’t it. I’m sure they’ll really have to live in poverty now that they’ll be left with only $19,000 instead.
Cough.
I don’t see any problems with this budget. In order to save the economy, the state needs money, to invest in the rescue plan. And the rich will have to pay that money. If they wouldn’t then afterwards they themselves would become poor also, when the entire economy collapses.
Especially with many people suffering income loss and unemployment (one way to get a tax cut – reduce your income and watch your taxes fall), the impact of the tax increases will be limited even for those fortunate to make $250K a year, and the revenue they raise will also be limited.
Very few taxpayers will be paying “capital gains tax”, and the few that are will be delighted. Regardless of the rate, one needs capital gains.
Also note these numbers are from “ten year estimates”. Ask yourself who in 1999 correctly predicted the rise, fall, rise, and deeper fall of the economy. These predictions are meaningless.
And a $100 billion “increase” (probably much less) is negligible considering that there will be close to a $2 trillion deficit this year. To use more “human” numbers, if a kid asks for $100 to spend, and proudly announced he would earn $5, one wouldn’t complement the kid are earning his way.
The fact that you don’t see the problems with this has no bearing. The prairie dog may understand its own problems, but those of the hawk fly directly over his head.
How can no one see aproblem with this??? Doesn’t almost every home owner do itemized deductions?? That is one of the things on the list as being eliminated!
Does anyone have any details on what exactly is being eliminated
read today’s WSJ. if you taxed everyone earning over 250k at a rate of 100% it will not cover his spending plans.
Daniel Breslauer-
I hope you never earn this money. Currently more than 50% of tax return filers do not pay a dime in tax.
This is so non-American. He is essentially punishing people for being successful in this country. If you make over $250,000 you have to pay through your nose to make up for everyone else? That’s a form of punishing people for succeeding. He is taking away the incentive for people to aim for big success because what would be the point of being ambitious and trying to grow beyond the ordinary in income? Most of what you will earn will be taken away in taxes.
It’s unfair to have a mentality that just because you yourself don’t identify with being rich that somehow the people that are rich should have to pay everyone else’s way. That is unfair to successful people.
It is also terrible for the economy and for middle class people looking for jobs. If people have no more incentive to grow very rich because they will be unfairly burdened with taxes, there will be less hiring and less jobs and less growth.
Companies will not show the same net profits which in turn will hurt the stock market and that effects everyone also.
This is simply unfair to wealthy people who are people too. They did nothing wrong. Chances are they worked and work harder than everyone else in order to become rich enough to make over $250,000 a year. They are in fact our best citizens. Why is it ok to be so unfair and take advantage of good, innocent people? Unless you are so warped to believe that people that succeed in life are evil for having something you don’t.
Attn: Daniel Breslauer
Your comments unfortunately portray your envy and ignorance.
Do you actually believe that an individual who owns a small business earning 20k a month will continue to earn that amount and simply pay the higher tax rate? Or will he simply fire/remove some of his employees to compensate the difference?
For example, if congress were to pass a law that your cleaning lady’s health care must be paid for by you, her employer, if she works more than 15 hours a week, what would you do? No doubt, you would cut her hours – correct?
Take away the incentive for the highly motivated class who are willing to take risks to earn more, will always end up on the backs of the lower class. Its that simple.
Unless communists, like yourself, will pass laws forbidding the removal of employees altogether…..
#7 – what you are calling un-American is in fact as American as American cheese. We have a progressive tax system, which by definition means that the marginal tax rate increases with higher income.
If you don’t like it, go live somewhere with a regressive income tax.
Daniel Breslauer,
You fail to realize that according to Hussein Obamma most people in the country are rich. 250k from 2 people or even a person with a small business is NOT that much. This means the small businesses will not hire or they will go out of business. Your local grocery store is probably bringing in more than 250k but now he would be taxed thru the roof.
Obamanation doesnt get it!! Its the small business owners that actually hire people. He is very very dangerous and we are all (removed) BIG TIME!
So, if all goes according to plan (any guesses on what the chances of that are?), the US will make a trillion dollars. Obama’s already spent more than that in what, 2 months?
straightshooter,
do you have a link to that story? I heard about it on the radio today but I cant find it. thanks!