Skip to comments.The Rich Can't Pay for ObamaCare
Posted on 03/30/2010 7:35:12 AM PDT by reaganaut1
President Barack Obama's new health-care legislation aims to raise $210 billion over 10 years to pay for the extensive new entitlements. How? By slapping a 3.8% "Medicare tax" on interest and rental income, dividends and capital gains of couples earning more than $250,000, or singles with more than $200,000.
The president also hopes to raise $364 billion over 10 years from the same taxpayers by raising the top two tax rates to 36%-39.6% from 33%-35%, plus another $105 billion by raising the tax on dividends and capital gains to 20% from 15%, and another $500 billion by capping and phasing out exemptions and deductions.
Add it up and the government is counting on squeezing an extra $1.2 trillion over 10 years from a tiny sliver of taxpayers who already pay more than half of all individual taxes.
It won't work. It never works.
The maximum tax rate fell to 28% in 1988-90 from 50% in 1986, yet individual income tax receipts rose to 8.3% of GDP in 1989 from 7.9% in 1986. The top tax rate rose to 31% in 1991 and revenue fell to 7.6% of GDP in 1992. The top tax rate was increased to 39.6% in 1993, along with numerous major revenue enhancers such as raising the taxable portion of Social Security to 85% of benefits from 50% for seniors who saved or kept working. Yet individual tax revenues were only 7.8% of GDP in 1993, 8.1% in 1994, and did not get back to the 1989 level until 1995.
Punitive tax rates on high-income individuals do not increase revenue. Successful people are not docile sheep just waiting to be shorn.
From past experience, these are just a few of the ways that taxpayers will react to the Obama administration's tax plans:
(Excerpt) Read more at online.wsj.com ...
The Hollywood and limousine liberals will be outraged by this.
Cheap tease. Not going to subscribe just to get the list!
I am no mathematician.
I am presently earning 1.5% interest on my CD’s
Slapping a 3.8% Medicare tax on 1.5% interest, aint gonna make Obama rich.
These people are insane.
Congress has a nasty habit,no matter how much revenue the governments receives it will spend at a 2:1 ratio.
“By slapping a 3.8% “Medicare tax” on interest and rental income.”
FUBO! Why are you jacking up my rent?
It's not CDs they're interested in. It's capital gains.
That was my experience. As soon as I realized the percentages I was paying in taxes I walked out of my high-paying corporate job and started my own company.
I'll spend my time on the tennis courts before I give a substantial percentage of it away to the "ne'r-do-well" class.
Wait until december the the tax train will go full speed.