Skip to comments.Obama’s Plan for Budget Would Shift Burden to Rich
Posted on 02/25/2009 2:57:21 PM PST by Oldeconomybuyer
WASHINGTON President Obama will propose further tax increases on the affluent to help pay for his promise to make health care more accessible and affordable, administration officials said on Wednesday. [snip]
Mr. Obama will also propose in the budget outline he releases on Thursday to use revenues from the centerpiece of his environmental policy a plan under which companies will have to purchase permits to exceed pollution emission caps to pay for an extension of a two-year tax credit that benefits low and middle-income people.
The combined effect of the two proposals, on top of Mr. Obamas existing plan to roll back the Bush-era income tax reductions on upper-income households, would be a pronounced move to redistribute wealth and reimpose a substantially larger share of the tax burden on the most affluent taxpayers.
Administration officials said the president would seek in the budget he releases on Thursday to cap itemized tax deductions for high-income people, such as couples earning more than about $250,000 a year.
The officials said the resulting revenues would account for about half of a $634 billion reserve fund that Mr. Obama will set aside in his budget to begin addressing health care. The other half would come from Medicare savings, including an end to billions of dollars in subsidies to insurance companies under the Medicare Advantage program, and other possible tax-law changes.
(Excerpt) Read more at nytimes.com ...
High income earners are not “the rich”. We need to abolish the tax code and the IRS and tax spending in order to tax the cash economy, criminals, and the really rich.
What happens when there are no more rich people?
I’m just screwed. Time to retire.
Who else to rob?
Don’t worry...the rich have always found ways around burdensome tax policies. They will continue to do so (and I suspect the Obamas will be at the head of the charge). All this will prove to do is reduce revenues to the Treasury, because the vast majority of workers will stay under that $250,000 mark to avoid the bump in tax.
IOW, it won’t work.
If you outlaw the rich, only outlaws will be rich!
Hmmm... Let’s say I’m rich... The government is going to tax me up to 90% (Might as well listen to Biden - stupid but loves taxes). Just what should I do...hmmm..
Moving, or just moving money, or quit working, or quit hiring, so many choices... I just may wait until next month to make my decision.
Sorry, 0’s plan will not touch the Kennedy’s, Kerry, Goldman Sachs execs, etc., and likewise old money tucked away in trusts and offshore accounts.
So, umm, who is it that shoulders the majority me the budget now? The poor? Nope. But Obama is bringing change. Today’s change is that rich is now defined as a couple earning 250k. The next change will be even lower.
The structure of the US tax code has been SHIFTED against the "rich" for a very long time. Generations of Americans have grown up believing that progressive taxation is the way it should be.
Just imagine what the US would be like if wealth and achievement weren't punished!
You can’t “Shift” the burden to the wealthy when the non-wealthy pay nothing or get net checks already.
what a dumb headline. the poor pay nothing, much of the middle pays nothing in income taxes
Income couples making $250,000.00 this means if you are single and make $125,000.00 your taxes will go up as well
True; we've had a progressive tax code for decades, but it's now runaway open season on success. There is NO WAY earning more should equate to higher tax bites (percentage-wise) and be "equal treatment under the law" in my book.
Worse yet is the handing out of this rapeage of high earners to the low-life that recieve 4th generation government assistane from it, and, even are "rebated" tax dollars they never paid!
If he taxes these people he calls rich, then who the heck does he think is going to have money to spend to stimulate the economy? Create Jobs?
Obama is just a typical socialist. Tax and spend and tax and spend and the nation and the people suffer....
Pretty sure that the taxes collected will be less with this plan. It’s pretty easy to hide money and defer profits. (Just a guess)
The “Rich” will soon be defined as anyone whose income doesn’t already come from the government...
...for now...with the way they're spending, those numbers could come down fast.
‘there's one for you nineteen for me’
‘if 5% should seem too small, be thankful I don't take it all’
We are heading in that direction. While working in Britain in the 80’s, I was making very low wages as my credentials didn't transfer there. My tax bite was 50%. Socialism is a pretty unhappy place for everyone involved. There are no Socialist Utopias in the world. Lots of people think there are, though.
It’s NOT going ot be taxing only those above $250K-
anyone want to bet on obamas threshold of being “rich”??
I’m guessing more like $150K
I believe Biden’s money guy said this hits in 2011. My speculation is that, besides a funding source, it is also meant to suck up dollars to keep inflation down.
Now THAT is change I believe.
This really burns me up. President Bush gave tax rate reductions to all taxpayers as well as I beleive eleiminated a few tax brackets for lower wage earners so some people pay nothing and they actually receive thousands of dollars back if they have kids and use an Earned (laughable)Income Credit. When I hear that Bush only gave tax breaks to the rich it is ridiculous he actually lowered the rates for everyone.
Companies do not pay the taxes.....we pay the taxes. Raise the tax on a company and they will simply raise the cost of the products.
Not only is O and Co. claiming the revenue extorted from businesses to do business will be targeted toward a new specific spending program (revenue neutral) but then they have decided not to put that revenue towards the most obvious choice (global warming/green energy yuck yuck) but towards revenue loss programs, ie. welfare.
If anyone gets a chance to question a major member of the media then ask them how revenue raised from carbon credits should be used to pay for the revenue/moral loss of welfare.
The US government collected the largest taxes ever under Bush because his tax cuts increased the economy.
I guess we’ll see if the democrat’s philosophy of doing the exact opposite will yield the exact opposite or the exact same.
An accurate title would be:
Obamas Plan for Budget Would Shift Burden to the People Who Create Jobs
Subheading: Thus Destroying Job Creation and Growth
They will calculate it on net worth as the Klinton was trying to do. Own a moderate home and a car? You are considered Rich. They will Tax workers down to what they deem National Poverty levels. One of the goals of Socialism is to equalize pay for the Serfs. Taxation is the tool they use.
Heh... Wait...Beatles are my generation (may not be yours). I’m way too familiar with the song and of course you’re right.
Taxes have been way too high now - much worse for the future.
Me, I think that I will play some of those Beatle songs and forget the disaster that is our current Presidency...
Hang tough...At least the Beatles saw what was coming in England...
Same here. It would be SOOOO much cheaper to retire.
Of course, now that the 401Ks are gone, geeze.
This is BOs plan - to totally erode the economy, and he’s accomplished it in one month. Amazing.
Of course, he had a little help from a friend -GWB.
The absurdity of a graduated income tax system is obvious when you realize that even a "flat tax" is progressive!
A single percentage withheld from everyone, regardless of income, STILL hits you harder the more you earn.
Does a wealthy person use more of the nation's services than a poor one? No. But even with an "ideal" flat tax, he would pay more in taxes than one who earns less.
So, with that knowledge, to then INCREASE the percentage demanded of the wealthy is even worse.
You guys all miss the elephant in the room. Maybe Obama’s not as dumb as he seems.
What if hyperinflation triples prices and wages...then $250k will be simply middle class? It’s coming, but we will still have indexing to keep up with inflation? Big question.
“Companies do not pay the taxes.....we pay the taxes. Raise the tax on a company and they will simply raise the cost of the products.”
It is amazing how many folk, usually liberals, do not understand that simple statement. Most liberals seem to think that anyone who hangs out a shingle and paints a name on a glass door is wealthy, and undeservedly so. It boggles the mind to think of how many shallow minds are in the gene pool.
If I was rich, I’d simply quit and work at McDonald’s or something part-time. Why should I bust my ass for the gubmint? I’d make as little taxable income as possible.
If the top 5% are already paying 50% of the income taxes, how much more should they pay?
Tax the rich
Feed the poor
Til there are rich no more
That's an unpatriotic racist question. /sarc
Rich = anyone not on welfare.
Never would have seen that coming!
These are "the rich" and neither one of them has EVER paid a single dollar in Federal taxes on the $500 million forune that they BOTH married into and are now living off of while those of us who actually earn our money are taxed and taxed and taxed.
Ha, got you by 6 years...heh. Yes, and what happened in England is about to occur here if they try to raise taxes to those levels... You and me have the experience to understand the disastrous results - government today - no chance...
Hey, at least I’m enjoying some 60’s music via your suggestions...heh.
Who among you didn’t see this coming? Anyone? Anyone? Bueller? Bueller?
I believe he said “family” earning $250,000. What constitutes a “family”? We must always listen closely when a democrat speaks.
That is exactly right. I really wish in any one of the press conferences that any reporter would state this fact, thus we can get to the real goal of redistribution.
"That's okay. I want the least possible amount of responsibility."
I always loved that line...