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  • The Coming Obama Tax Explosion

    According to Time, the Center for American Progress (CAP) is “the most influential independent organization in Obama’s nascent Washington.” The brainchild of former Clinton White House chief of staff John Podesta, President Obama “effectively contracted out the management of his own government’s formation to Podesta.” So take notice when CAP senior editor Matthew Yglesias writes in The American Prospect:

    The flaw in [Obama's] budget is that the taxes it proposes are too low. Obama would stabilize revenue at about 18.8 percent of gross domestic product, somewhat lower than it was in the final years of Bill Clinton’s presidency. That was enough revenue to fund the programs that existed in 1999, but it’s not enough to implement a transformative domestic agenda that goes beyond our ambitions of 10 years ago.

    An extra annual tax of $500 per capita could raise almost $150 billion. Obtaining a comparable amount from the top 1 percent of individuals would require $50,000 from each of them, an amount that the very wealthiest could easily pay but that is probably an unrealistic burden on those near the bottom of the top 1 percent. To get a lot of money you need to be willing to take at least a little from a broad group of people.

    Posted in Economics [slideshow_deploy]

    25 Responses to The Coming Obama Tax Explosion

    1. Jeff Brodhead, WA (s says:

      The Obama Admin, is willing to take every last penny from every American (except the elite). He/they just have to do it 'progessively'….

      They are heating the pot, to boil the frogs.

      ? When should we jump out?

    2. Pingback: » Financial News Update - 06/18/09 NoisyRoom.net: “Extremism in the defense of liberty is no vice. Moderation in the face of tyranny is no virtue.” Barry Goldwater

    3. Pingback: Matthew Yglesias » Endgame

    4. Bob, DC says:

      I personally believe we should cut all taxes to .1% and thereby spur the economy and increase our tax returns. Then, let's buy some more missiles! Yeeehah.

    5. Russ, DC says:

      I agree with Bob, DC.

    6. Ben Franklin says:

      The problem is the libs tend to think that all the money in the country (the GDP) is their own personal budget, so they can't understand why we'd have a problem with them implementing national health care, and the taxes necessary to do it. They don't think the money we make belongs to the citizens (peasants), they think it belongs to the government (king), and government has a right to use it as they see fit.

    7. John Rosky Andover, says:

      When is the President going to stop. He is trying to spend us into bankruptcy. He will not live up to his promose not to tax people that make less than $250,000 per year. He should replace the czars we people accountable to the American People.

    8. Chris Goldthorpe, Fl says:

      To get a better understanding of taxation I recommend doing a thurough investigation of its history. If you try to exactly define the essence of taxation ( as oppossed to donation ) you must identify the violence required to implement it! ALL taxation is morally illegitimate. ALL government function can be practically funded thru a system of what would be essentially user service fees. Many things in government possession should be sold to the private sector. I am a libertarian, but an objectivist. The conservative movement must embrace all faiths and most importantly atheists. We should NOT rely on superstition and supernatural explainations to justify natural rights. It is enough to say that we are born wit our rights, which christians and even moslems might agree with. John Locke, when he said (essentially)"… it is not the duty of government to give us our rights, but rather to RECOGNIZE and defend them." Whether or not he was religious and/or christian is of no major consequence and is not central to the issue of justify the concept of individual rights, freedom, or capitalism ( Google Ayn Rand ) Ayn Rands' The New Liberalism – the anti-industrial revolution! ( "The New" is not actually in the title but clarifies the meaning )I hope people watch "The Fountainhead" with Gary Cooper. And listen to "This is John Galt speaking" Their defense of egoism ( divorced from any particular metaphysical understanding ) is are excellent universal defenses of egoism ( the heart of individualist philosophy ) and capitalism!

    9. Dennis A. Social Cir says:

      I beleive that "the chosen one" campained on "hope and Change", the people ate it up like candy. We are about to get all the change and none of the hope, unless you are taking the hand outs that obama will give, then you have hope. We the tax payers are going to get ripped for all we have and then some. The change is going to be a socialist, or communist "guvernment", that will take the few freedoms we have left. People need to get out and vote him and the other fools out at the next election. PEOPLE ALSO NEED TO REALIZE THAT VOTING IS NOT A GUARANTEE, IT IS A PRIVILIDGE AND CAN BE TAKEN AWAY WITH A STROKE OF THE PEN. I am not willing to bet that the pen is not poised to do just that, the obama will be the sole "ruler" jsut as he desires to be, ARE YOU WILLING TO BET THAT HE WANT??????

    10. Charles-Odessa, Texa says:

      We are all going to be Democrats. That way we will not pay taxes. Only those who do not follow Obama's line will pay taxes and the EPA rules and penalities.

      We are all anxious to see our President do right and not talk about it thru both side of his mouth. He talks of transparency and acts in secret.

    11. Dale, Cincinnati says:

      It is amazing how the democrats say that tax rates should be higher yet for some reason don't seem to think that way when they file their tax returns. How many of Obama's cabinet level appointees had problems with their tax returns? To quote an old Louisiana politician "Don't tax you, don't tax me. Tax that fellow behind the tree." With the dems running the EPA there will be more trees around. So, tax revenue should increase.

    12. Tricia, Arizona says:

      This administration is doing everything it can to destroy our economy. It hasn't done one thing to repair it or to create jobs. I'm just sick of the lies… and I'm sick of seeing this President on my tv set day in and day out…. Such arrogance I have never seen. Nothing but lies, lies, and more lies.

    13. Jerry from Chicago says:

      If we don't stop these people now, it will be too late when they have taxed us all into poverty.

      We need to once again have Tea Parties across the nation once again. Mr. Obama and his Democratic majority in the House and Senate have just passed the largest spending bill in history (Stimulous) without bothering to even read what was in it. A week later, the Preseident and his co-conspirators call a press conference (to show solidarity with an outraged public) and express their own feigned outrage over the bonuses paid to AIG executives. When confronted with the fact that Chris Dodd put the bonus payment language into the Stimulous bill, Dodd initially denied the acusation and said "someone had altered the language he initially submitted". Two days later, it became clear that Dodd in fact had inserted the provision for these bonus payments, reluctantly conceeding that "Treasury made me do it." And we are supposed to call this guy the "Honorable" Senator Dodd? Please.

      Now we have john Podesta's henchman, Matthew Yglesias, saying that Obama's proposed taxes are not enough. He states, "To get a lot of money you need to be willing to take a little from a broad group of people." Note his use of the word "take" and of the term "a little". I've got news for you Mr. Yglesias, adding up State, Federal and FICA taxes, I already pay 33.5% of my income in taxes. Then, anything I purchase with my "after tax" money is taxed an additional 7% to 10% sales tax. Oh yes, the bank and I also own my home, but the property taxes (8% of my annual salary) are all mine. Because Al Gore and his band of alarmists have convinced a number of people that driving your car and heating your home is killing all the cute polar bears, it's time for us all to grab our ankles yet again and wait for the Cap in Trade taxes of another #3,000 to $4,000 to come our way.

      I live in Illinois, so I am used to our Governors and Legislators robbing me blind. Now they too are crying about our State being broke and trying to increase the State Income Tax from 3% to 4.5%. It's only "a little more" they whine (it's a 50% increase). And its always the same ploy, they point to all the public aid programs that will cease to be available for the old and infirm, the homeless, the mentally ill, the addicted that will cease to be available and there will be cutbacks in Medicaid payments for the poor. And then there's there ever present "money for education". Every time the teacher's union threatens to strike over salary and benefits, it's always "for the children", and after all, "it's only a little more".

      There will always be poverty, hunger, sickness and homelessness in the world. I don't like it. I sympathize with those who are caught up in it, but I can't end it all on my salary. Neither can the 70% of Americans who actually pay taxes. I have no problem with those who would like to contribute more than I do. To those that feel this way I say "Sell all that you have and give it to the poor and disadvantaged, if that's what you want to do." However, I do have a problem with those who would take what I have to finance their philanthropy.

      I pay taxes and I contribute to charities. I have no control over the taxes, but I do over my charitable contributions.

      There are those in this country who would open our borders to the billions of poor, sick, weak,elderly and otherwise disadvantaged of the whole world and then tell us "now that they are here, we have to provide them with food, shelter, clothing, medical care, education and economic security". I can't afford it, nor do I want to afford it. I have enough trouble trying to support myself and my family. I suspect the majority of taxpaying Americans feel the same way.

      Perhaps its's time for the Liberals and Conservatives in this country to get a "no-fault" divorce. It's obvious we have irreconcilable differences. Rather than continue on making each other miserable, let's just divide up the country. Liberals, take everything East of the Mississippi River. Conservatives, take everything to the West. Californians, you'll like it in New York. Most of them feel the same way about things as most of you. Do what you want with your part of the Country, but stay on your own side and when you run out of money, don't come near the border.

    14. Space-Bisbee,Az says:

      We are being ripped off by our current government, who has no concern except how much they can spend and pat themselves on the back at how they put over on the public. Now is the time to stop the career politician, who's only interest are self serving and to their lobbyist, not the general public that voted them in. How many generations are going to have to pay off this debt?

    15. John Jensen ,MIchiga says:

      Sory but this true American belives the White House and Washington are filled with liers that are and are trying to steel America so they have a job. Obama creates all the Carbon Dioxide America can handle when he opens his mouth. The next thing we will see is Acorn running the health care program. Oh well we only need to suffer 3 more years unless we can do a recall.

    16. Roger Kress, Gunters says:

      Hello,

      I believe that the only way “We the People” can effectively stop the insanity of this government is to stop the life blood that keeps it going. That is, the cash they are stealing from us. Government cannot and will not heal itself. The one force that still holds the power in this country can only do it. “We the People”. That power is being taken away daily and it won't be long before we no longer have the power of “We the People”.

      I believe the time has past for talk and symbolic protests like the Tea Parties. Although they are a start, we need to mobilize a real effort to stem the tide of socialism that is being thrust upon us. The socialized liberals are not talking and making symbolic gestures, they are stealing our freedoms and making laws at an alarming rate. If we truly believe in the Constitution and in the fight our forefathers fought to give this country it's Freedom and Liberty than we must not be complacent, or any less aggressive at preserving those rights then they were. If we don't act with the same determination our forefathers did, than we disgrace them and make null all they fought and died for. We cannot and must not let that happen! We will be held accountable by future generations. What will we say when our grand kids and great grand kids ask the question! Why did you let this happen? You saw what was happening and did nothing to stop it.

      The Boston Tea Party was not a symbolic activity! It was a revolution where by the American people said we would rather throw our goods into the harbor, and not sell them, rather than sell them and have to pay taxes to an oppressive government, thus cutting off the life blood. Even though it meant they would sacrifice income to support themselves. That is the kind of belief, bravery and tenacity it took to stop the tyranny then, and it will take no less effort and fortitude to stop it today.

      I obviously believe we need to cut off the governments source of power by withholding taxes, but there is a way it can be done without the government being able to stop it. Like our forefathers knew, the government cannot force us to open our business. They cannot put us in jail for not selling our products in effect throwing them into the harbor.

      It has been said over and over that small businesses in this country are its backbone. If that's true, it's time to get America’s backbone back. We have been treated like the assholes long enough. We don't even need a majority to accomplish this task. Can you imagine if we could rally 100,000 small businesses in this country to close their doors every Monday? How about 500,000? No sales tax, no income tax, no payroll tax, no VAT and on and on. If Monday doesn't get their attention then Monday and Tuesday? And so on. Even 50,000 would make a huge impact. This would be the kind of movement our forefathers would have made. This is the kind of belief and fortitude that our forefathers and the future generations would be proud of. This is the kind of tenacity that made America Great!

      I have been trying to get people to understand the power we have as Americans when work together as a team. T.E.A.M.

      meaning T.ogether E.veryone A.chieves M.ore!

      We need a T.E.A.M America!!!!!!!

      We must regain our position as the backbone of this once great nation or forever be it's asshole.

      I remember this great story about who needs to be the boss:

      When the body was first made, all the parts wanted to be the boss.

      The brain said, "since I control everything and do all the thinking, I should be the boss."

      The feet said, "since I carry man where he wants to go and get him in position to do what the brain wants, then I should be the boss."

      The hands said, "since I must do all the work and earn all the money to keep the rest of you going, I should be the boss."

      And so it went with the eyes, the heart, the lungs, and all the other parts of the body, each giving the reason why they should be the boss.

      Finally, the asshole spoke up and said it was going to be the boss.

      All the other parts laughed and laughed at the idea of the asshole being the boss. The asshole got so angry that he blocked himself off and refused to function.

      Soon the brain was feverish and could barely think, the feet felt like lead weights and was almost too weak to drag the body anywhere, the eyes grew bleary, and the hands hung useless at the sides. All pleaded with the brain to let the asshole be declared the boss.

      As the great philosopher Hillel wrote: If not now when, if not us who?

      I am but one small person who is trying to inspire us to greatness for the good of our Nation.

      If we believe in the Constitution, Freedom, Liberty and the pursuit of Happiness, which is, what our forefathers fought and died for, then we own it them and to the future generations to stand up boldly, and say enough is enough. Every day we stand in complacency, every day we try to send a symbolic message, every day we try to fight this battle on their turf we lose. We lose credibility and freedoms. Government will never heal itself; only We the People can stop this insanity.

      I pray there are still enough Americans left (on the right) that are willing to fight on the side of Freedom, Liberty and the Pursuit of Happiness in the country, and save it from this tyranny. Please! Help me get the word out for real Americans to once again be part of the great T.E.A.M. America!

      In the words written by General John Stark, July 31, 1809

      "Live Free or Die,"

      God Bless you and God Bless America! I am,

      Very Truly Yours,

      Roger J. Kress

    17. Pingback: frankhagan.com » Obamacare In Critical Care Unit

    18. Bill P says:

      Why can we not deal with real numbers??!!!. The TAX Foundation collected stats from the IRS that show for the year 2006 there were just under 4 million tax payers that made more the $200,000.00 per year. If you do some fairly simple calculations you can figure out that if you take every dime these people make the govenrment would collect another 500 billion in taxes. The point being there are not enought people in this country to tax to pay for the spending Obama wants!!!! If they persist with their tax plans, who is going to start the businesses that hire people?

    19. Sundowner04, TN says:

      The time has come for DC and take back our country. Term limits must be enacted and politicians called to task for their failure to "support and defend the Constitution of the United States of America". My oath included against "all enemies foreign and domestic" which unfortunately has come to include the domestic enemies in Congress and the Senate as well as the White House. Freedom now!!

    20. Barb -mn says:

      Of course they're too low to the mentally challenged? People are not showing they're disgust of needless governance! Or aren't showing it LOUD ENOUGH! Yep, convince the vulnerable once again it's the man that does for himself who is at fault. The man who stole nothing from anyone. And again, Obama looks that much better. Hmmm, what crisis will they feed us this time?

      Save us, mr. president, save us from the wealthy, honest people who do for themselves! Please don't force that freedom on us! Let the rich, tax free drug dealers have theirs, let the government corruption continue, just save us from those men that stole nothing, those who do for themselves, those who are honest. SAVE US NOW!

      PS…thank you for your words, Roger. And all who fight the fight of freedom and dignity of the foundings of this country. And especially to the Heritage Foundation.

    21. Andy, Florida says:

      You know what? We are wimps. When Congress talked about cracking down on illegal aliens the hispanics took to the street and protested. What happened? The proposal died even though most Americans supported it. Perhaps we need to take to the streets, block traffic, and fly Mexican flags. Maybe Congress will listen then.

    22. Andy, Florida says:

      The line $500 per capita would raise $150 billion dollars is a joke. The US only has 300 million people so this means we need to tax everyone not just people who work. Where the government finds these people is beyond me. Also what is $150 billion when we are trillions in the hole? This insanity has got to end before we all go broke.

    23. Whicket Williams Kin says:

      I am watching the sunday funnies I see an old man on there who they proudly say has headed so and so for 25 years. What is the problem? He has consistantly failed for 25 years, and almost destroyed this country. When are you people going to stop re-electing the same old failed politicians? Lets see everybody add " never re-elect ANY incumbent" to every post until it happens in 2010, and EVERY single failed politician loses his FAILED seat.

    24. Robert G. Lasheff says:

      Politicians and Lawyers, the world would be so much better off without them. Dysfunctional and trouble makers comes to mind

    25. Pingback: Heritage Foundation on Healthcare | High Plains Patriots

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