Skip to comments.Is Obama planning a $3 trillion income tax increase? (repealing all Bush tax cuts)
Posted on 11/17/2009 12:45:54 PM PST by reaganaut1
Did I just see a trail balloon launched? Over at a Wall Street Journal conference, Christina Romer, chairman of President Obamas Council of Economic Advisers had this to say about deficit reduction:
But the chairman of the presidents Council of Economic Advisers admitted that health reform and a growing economy isnt enough to bring down the deficit. She did mention one other place that revenue could come from: letting the Bush tax cuts expire.
Me: Since Obama already wants to get rid of the income and capital gains tax cuts for wealthier Americans that expire at the end of 2010, clearly what Romer is referring to is the rest of the 2001 and 2003 Bush tax cuts. Letting all the 2001 cuts rate reductions, child tax credit marriage penalty relief expire would raise tax revenues by $2.5 trillion through 2019. (These CBO numbers assume no negative economic feedback impact from higher taxes.) And letting the 2003 tax cuts on capital gains and dividends expire would be tantamount to a $350 billion tax increase through 2019. And none of this includes possible plans for a VAT that could raise $400 billion a year more to close the huge projected gap maybe 7 percentage points between spending as a percentage of GDP and revenues as a percentage of GDP.
(Excerpt) Read more at blogs.reuters.com ...
Why is this question even being asked? We know that he will let them expire.
The Dems have never believed that the Bush tax cuts were legitimate and will allow them to expire in 2010 introducing the largest tax increase in US history.
When the 2003 tax cuts expire at the end of 2010 people making $50k/yr can kiss goodbye $2500 cash/yr. People making $100K/yr can kiss goodbye $4000 cash/yr.
In other words, the numbers are garbage. (GI-GO)
Bend over, here it comes! Part 1
James Pethokoukis (author of article at Reuters) is one of the good guys who understand economics and is conservative. He has been on Bill Bennett’s Morning in America a number of times and is well informed and explains economics in terms that the common man can understand.
“assume no negative economic feedback impact from higher taxes”
A ridiculous assumption.
Prices on all products will spike, yielding even lower consumer spending.
2010 is going to be a dismal year for private corporations because the taxes are going to destroy any opportunities for them to expand or succeed.
Exactly..without so much as a kiss, a cigarette or a promise of a second date.
“Growing economy?” Let’s see, stock market up, dollar down, production flat or down, inventories getting depleted, streamlining about streamlined out, energy prices up. What am I missing here. The only growth I see in this formula is the growth of dollars it is going to take to buy something. The Obamao goons are going to increase taxes on diminished incomes, and call it good.
Actually, that's more of a BALD-FACED LIE.
It is nothing short of DECEPTION to push such bullsh!t.
Higher taxes to the companies are passed along to the consumer via higher prices at the cash register.
Higher prices at the cash register means fewer goods purchased.
Fewer goods purchased yields minimal to ZERO profit for the company, yielding subsequent layoffs, firings, closings, and potential bankruptcy for the companies.
well i don´t think it´s “really” important for the government (inofficial) from whom they get the tax money as long as they get it. fact is the state “needs” an amount of money (or else they will be bankrupt) and they will get it. the only political question is “from whom can we take most of this money without pi$$ing off too many voters in the next election”. so indeed tax brakes are a “joke” this means if you are on the winning end (we all hope to be on this side) someone else will pay the bill for you. because the bill has (and will be) to be paid.
I REFUSE TO BEND OVER ANYMORE.
I paid for Medicare 40 years; now the government wants to steal it.
I paid for SS for forty years; now the government wants me dead.
I paid more than my share of income tax for forty years; now the government wants it all.
NO MORE. I REFUSE.
Yes we are.....
And Obama and the media will blame it all on Bush.
Not only that but the lowest rate of taxation jumps back to where it was beofre the cuts which means anyone who pays taxes will see an increase at the worst possible time ever.
Yep! I beleive the lowest marginal rate will jump from 10% to 15%. That’s a whopper chunk of money.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.