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  • Obama Tax Proposals (Mostly) Bad News

    President Obama’s budget document lacks the details necessary to judge fully his tax proposals. What we have are proposed streams of revenues over 10 years and short tag lines describing the proposals. A full assessment of his tax program will therefore have to wait. The initial impression, however, is that the President intends to carry through on his campaign promises to sacrifice future economic growth at the altars of redistributionism and nationalized health care.

    For all liberals’ posturing in recent years, including by President Obama, about the irresponsible Bush tax cuts of 2001 and 2003, perhaps the least surprising aspect of the his tax proposals is that he would keep almost all of Bush’s policies. Consequently, on this count the President is protecting most Americans from a $2.7 trillion tax hike. To paraphrase a line that once described Hollywood – behind all that apparent phony posturing was some real posturing.

    The President also seems to be abandoning the liberals’ fondest hope of restoring the Alternative Minimum Tax (AMT) to its full punitive glory. The AMT has been held mostly at bay in recent years, and liberals have tried to use the annual exercise to protect potential AMT taxpayers from a huge tax hike by raising taxes on other taxpayers. This, of course, made no sense and so the tax hikers were thwarted. While the provision’s full explanation is missing, it appears the President is proposing to maintain current policy, protecting against AMT tax hikes. This is good news.

    Unfortunately, this good news is quickly and massively eclipsed by the bad news. Almost as if he set out to weaken the economy in the long run, he proposes tax increase after tax increase on savers, investors, small businesses, and upper-income taxpayers. In total, he is proposing over a trillion dollars in tax hikes levied on an average of less than 5 million taxpayers. In that these taxpayers already pay the vast bulk of the income taxes in the United States, asking for another $200,000 a person is adding insult to injury.

    These, of course, are just the direct tax hikes on individuals. In addition, the President is calling for $210 billion in higher taxes on American companies trying to compete in the global economy, and $646 billion in cap and trade taxes (humorously labeled “climate revenues”) on American industry at home. These taxes will ultimately be paid through lower wages and dividends, and again through in slower wage growth as they reduce investment, productivity, and competitiveness of U.S. workers and companies.

    President Obama’s policies are obviously well intentioned. But with good intentions like these, America’s workers don’t need enemies.

    Posted in Ongoing Priorities [slideshow_deploy]

    33 Responses to Obama Tax Proposals (Mostly) Bad News

    1. Barb -mn says:

      If there is any intelligence of Obama, it is intelligence FOCUSED ON DESTRUCTION!

    2. Pingback: Republican Reading List « Unterekless Thoughts

    3. Ozzy6900, CT says:

      Meanwhile, Senator Nancy Pelosi is complaining that President Obama is not taxing the upper crusts enough! So who is President Obama really working for here?

    4. Paul, GA says:

      I feel very powerless and angry about all this. These policies are evil, un-American and quite horrible, but what came we do? Is it too late? It is like watching a nuclear bomb go off in slow motion.

    5. ra,ohio says:

      WE are living in the land of OZ folks.

      The people in Washington are existing on a movie set, not in reality.

      Pay no attention to the man behind the curtain, or the curtain for that matter. It's all a facade.

      In 2 years we can change this, don't forget about the first month of the REGIME of "The Messiah".

      We will be in dire straits by then, but the sheeple that put him in office won't even notice.

    6. Barb -mn says:

      Educate family and neighbors as often as you can.

    7. DINKs, New Jersey says:

      We are DINKs (Double Income No Kids) living in central NJ. My spouse and I each make approx $200K toal comp per year. We spoke with our tax accountant about how we can legally avoid the Obama tax hike and keep our take-home pay constant from 2011 onwards.

      He recommended that we get divorced (tax savings $13K under the new Obama taxes) but continue to live together and that we eliminate our charitable contributions (from $4K each to $0). Taken together, he calculated that this would actually increase our take-home pay by over $10K compared to our current tax filing and charitable donations under the Bush taxes.

      So Obama is incentivizing divorce and penalizing charitable donations. Expect divorce to increase, marriage to decline and charities to lose out.

      So much for Change You Can Believe In and the Audacity of Hope!

    8. Pingback: Right-Wing Tax And Budget Myths

    9. Carolyn Overstreet, says:

      It is clear to me that this new president is out to destroy our free enterprise system as fast as he can. He must know he will only be a one term president.

    10. dad, Long Island says:

      A lot of "progressives" must be having buyers remorse. Some others still too intoxicated by ideology to learn. Heaven help us.

    11. Paula, CA says:

      This man is intentionally bringing down the country. He will make the spenders who feed the economy (small busi and upper mid class), part of the poor. The average IQ in this country is 90 -100 and he knows that most don't even know what the ramifications of his actions will be. Groups across the country need to form to educate those masses. This monster needs to be stopped and knowledge is how he will be stopped. We don't have access to the mainstream media as it has become a 'one-minded' media (sort of like we are already in a Communist country, yes?). If this group will air commercials that don't disseminate fear but teach logic, I would donate regularly. We need a very strong and loud voice to educate the masses. This is serious people. This is the worst President we have ever had and he needs to be stopped quickly. Any ideas?

    12. Sharon, KS says:

      Ayn Rand wrote "Atlas Shrugged", a novel about government control and over-taxing of the wealthy and businesses. The result was they left the U.S. one by one and took their wealth with them. The story is being played out right now. It should be required reading!

    13. John, Tampa says:

      People lets listen to Rick Santellie on CNBC.

    14. Mike L - GA says:

      Obama will bring down America without firing a single shot. He will do it by bankrupting our economy and precipitating the collapse of the US Dollar with this unabated spending orgy, tax hikes and redistributive agenda. We will then be too weak militarily to defend our nation against an assault by radical Islam. Obama is pro-Arab…why else would he pledge hundreds of millions of U.S. taxpayer dollars to rebuild Gaza for the Palestinians and totally ignore all the damage and loss of life in Israel when Hamas initiated the hostilities?

    15. DJR, CO says:

      Paul, RA, et al– Heritage has it correct-Obama has set out to weaken the economy. By doing so, much of the citizenry will be forced to turn to/rely on government. Think Cuba. No, this man is VERY dangerous for the structure of the country and the fabric of society. And there are many Dems who don't see this and many more who don't care! In a sense, it is too late. The damage will have been done and take years, decades to overcome, if it can be done at all (at least through the voting booth)

      Name five government programs and or taxes which have been eliminated once put into place.

      I rest my case.

    16. Dchiro FL. says:

      Obamanomics strikes again. But please lets not forget the three traitor senators from Pa. maine. Lastly, lets not forget all those republicans who are party to those 9,000 EARMARKS!!!!! What a travesty, one party lies and the other swears to it.

    17. Patricia says:

      This is the only country where the people are afraid of the government and not the government afraid of the people. What they are doing is absolutely unAmerican, but there is nothing we can do. He was voted in by persons not doing their due dilligence and everyone is going to have to pay for this Colosal error..

    18. Susan, San Diego says:

      It's not too late. This is America. Those legislators who are supporting this insanity work for us and we can fire them. Start writing to those in your own districts and get your family, friends and neighbors to do the same. Pay attention to their voting records, confront them with it and MOST IMPORTANTLY do not vote for socialists. Campaign against them. Get your sphere of influence to do the same. Fire up people! They only can do this if we allow them to.

    19. Tita Gascoin, Salina says:

      We should work on the eligibility cases and get him out ASAP

    20. Mrsupole's Plac says:

      If all these taxes come true, will not this be the precursor to a deeper recession. If the government would just STOP spending so much money for THEIR little pet projects, would not we the American people have more money in our pockets to save and put into the banks. Or would we not have more money to spend, if and where WE wanted. Why is everyone asleep at the helm and just idly letting this happen.

      History is now showing that FDR hoodwinked the people into believing that what the government was doing was in their best interest. When are people's eyes going to open and see that our current government is doing what they think is best for themselves, not the American people.

      Plus, when will they start going back out and spending more time on the campaign trail than doing their jobs. There should be a law that if you are working and getting paid a government salary, that you should only be allowed to campagin on your days off. And if you do it on your work hours than you should forfeit your pay for that day.

      Wake up America and stop getting taken advantage of.

      God Bless America and May America Bless God.

    21. doug m ohio says:

      economics 101:productivity, productivity, productivity equals jobs. Printing more money is not productivity.

    22. Robert, Pa. says:

      The American people need to know and understand that the socialized medicine Mr. Obama and his liberals are proposing in his budjet will replace a health system Americans will utterly detest and will cost more in the long run. In addition, it will rationlize medicine with our senior citizens being exluded from the process. We must protest as loud as we can and never stop.

    23. ML, PA says:

      What happens to those who have worked very hard all these years to try and make the American Dream become a reality? The Small Business Owners…

      We who contribute to the community and serve others?

      We who support not only our families but our employees' families?

      Will our missions to serve others be stopped? Our growth potential be stifled with this tax plan?

      It would be great if more clarity existed with whether the 250k benchmark was based on gross, adjusted, or taxable income…which is it?

    24. Stephanie, Okla says:

      Obama keeps referring to the 1990's tax structure as being fair but he neglets to point out that taxpayers could deduct all interest payments and a lot of other things to balance out the higher taxes! It's a shell game with Obama.

      Also, why aren't Freddie and Fannie executives giving their bonuses back? They were being "monitored" by Congress!

    25. Jerry, Ohio says:

      Where is Ross Perot when we actually need him. We need someone with his $ and passion buying time right now in the media telling America how all this spending is taking away our freedom, killing our economy and mortaging our childrens future.

      We also need to stop all this election fraud before the midterm elections. Obama stole my state of Ohio with fraudulent ACORN votes and if we don't do something about that our country is gone.

    26. Roger, Houston, Tx says:

      It has become very clear to us that we are revolting against the administration and it's irresponsible actions! We know that Barack Husein's intentions are to ruin this country as rapidly as possible. A call for impeachment is in order.

      Our Constitution is being threatened and we, the people, want control of our government back in our hands and out of greedy, rotten, ignorant scoundrels!

      Both parties need to be cleaned up and we need to vote in new representatives that will represent and work for the people!

      This crap has gone too far and we need to act now!!!

    27. John. NC says:

      "0's" goal, obviously is to bring America dopwn toa third rate nation. He wants to be "King", he wants to briing everyone in subjection to him, he wants everyone to be his slave. He says he is working for the American people. Yeah, right. "0" has always worked for "0" and he always will. He is feathering the nest of those who will feather his nest. He hates America, he hates freedom,. he hates free enterprise. He will penalyze investors ,

      small businesses, etc. He can not afford for them to succeed as that will expose the so called "stimulus" for the travesty it is. A VOTE FOR "0" WAS A VOTE FOR THE DESTRUCTION OF AMERICA.

      From a human standpoint the hope for America is in grassroots America-you and I. Join as many of the very good watchdog organizations as you can and get and stay active, signing the petitions they have from time to time and send faxes and emails, and make phone calls to as many politicians as you can, etc..

      "Don't give up the ship". Who said that? and wasn't it Patrick Henry that said "give me Liberty or give me death."?

      Consider how many men and women risked their lives, and many paid the ultimate sacrifice so that we could enjoy liberty and freedom!!! Can we do any less now?

      In GOD we Trust! Because He is Able!!! Friend, do you have an "open" line with Him? Are you on good, and regular speaking

      terms with Him? You can have a good personal relationship with Him,, but there is only ONE WAY, and that way is only through the LORD JESUS CHRIST.

      May the Supreme, Sovereign God grant you eternal life with Him!

    28. Theresa, Indiana says:

      Wake up America! Help campaign to oust Specter, Snowe and Collins who helped the liberal socialists pass this ridiculous spending bill! If this budget bill passes, the country is in for a huge downward spiral! I am a small business owner. I currently pay 47.5% of my paycheck in taxes. If taxes on my income and my business go up, I will be forced to REDUCE my staff, freeze wages, decrease benefits, etc. Obama is only out to socialize this country and nothing more. When you won't even release a CERTIFIED copy of your birth certificate, what else are you HIDING??? He needs to go and so do the liberals who are supporting him! Get out and VOTE. Educate the young people who were hoodwinked by his smooth talking!!

    29. Arlene, FL says:

      All the signs, point to a police government (or the fall of this government) coming to our shores. If people reject truth, then they will be deceived and fall for a lie. Perhaps, this is why the masses have fallen for this promise of "Change". They know not what they are sacrificing in the name of this "Change". I am thankful for having known the freedom of a democratic government all my life. I repent if at any time I have taken it for granted, and am grieved at what is happening, knowing full well the mastermind behind it all. You too, I kindly ask to REPENT, before it is to late. Do NOT trust in government to help you. DO NOT trust in your riches to save you. CALL on the Name of the LORD your GOD to have mercy. HE alone is able to save and deliver in this time of "Change". Then clarity of thought and action will follow that are specific to your situation, helping you day by day be ready for this time of "Change" as well as give you insight on what to combat it with. I also ask kindly that you, if needed, forgive others, hold not onto bitterness. Let it go. It will free you from inward fear and torment. Learn who your real enemy is, and if known, can make you ready for anything this "Change" will bring. God Bless you, He really cares for and loves you so much.

    30. Pam, AZ says:

      Tea parties, anyone?

    31. Rayne, Louisiana says:

      People…there are things you can do. Writing your Representatives and Senators is great. Better if you participate in the Tea Party's being organized all over the country. If there isn't one scheduled close by or soon enough….start your own. 4th of July appears to be a target date for many. Google the new boston tea party…lots of good sites and information. A bolder move is…change your withholding allowances by filling out a new W-4 at work…assuming you still have a job. Grass-roots efforts are our last hope to change the course of this rape taking place on America.

      Come join our band of conservatives at http://www.noleftturnz.com. Great discussions, ideas and comraderie.

    32. Matt D from Ma. says:

      Remember everyone 2010 almost all of the house and 1/2 the senate are up for reelection . Lets get them out of there so we can start to take America back.I fall in line to benefit from all this crap but I will not . Start now tell every one you know educate all that is our only hope . Thanks all Matt D

    33. Bryan@Turbotax says:

      yes, the stupid taxes screw anyone making too much and giving too much to charities. How dumb to encourage divorce and encourage not giving to charities. it's ridiculous.

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