Obama’s Tax Insanity

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One might expect the “green” energy initiatives, the defense cuts, and the massive increase in transportation spending where Obama’s union allies will get a windfall. But it is how the president wants to raise taxes that the class warfare theme of his campaign for re-election and, what can only be described as his hatred for the successful, the entrepreneur, the savvy investor, and the small business person, becomes apparent.

Larry Kudlow sums up a few of the tax increases in Obama’s budget:

The capital-gains tax goes from 15 percent to 24 percent (including Obamacare). The dividends tax goes from 15 percent to nearly 40 percent, and that’s not including the double tax on corporate profits embodied in dividends and capital gains. The Bush tax cuts for top earners are repealed. There’s the 30 percent Buffett-rule minimum tax on millionaires. The carried-interest tax for private equity, hedge funds, and other investment partnerships goes from 15 to 39.6 percent. The estate tax jumps to 45 percent. Oil and gas companies get hit. And there’s probably more stuff in there I haven’t read yet. (Jimmy P. lays it out nicely.) Paul Ryan’s press release calls it $1.9 trillion tax hike, with $47 trillion in government spending over the next decade and the fourth straight year of trillion-dollar deficits.

Oil and gas companies will lose subsidies, which is the same thing as a tax increase and will make energy more expensive. And if you are going to die and want to pass on your estate or small business relatively intact, it would be better to go sooner rather than later. After an estate is taxed every year for purposes of income (and taxed when the money is first earned), Obama doesn’t believe that is enough. Before it is passed on to your children or spouse, it must be taxed again with nearly half of your life’s work going to the government.

Thus is “fairness” served in Obama’s eyes.

Perhaps the most egregious bit of deceitful and fraudulent budgeting is in the “savings” Obama is claiming from ending the wars in Iraq and Afghanistan. The administration puts that figure at a nonsensical $850 billion. Even his allies are embarrassed to defend this bit of tripe. It’s as if they pulled the number out of thin air, believing no one would notice. Since it is a fairy tale number, there is little doubt Obama’s deficit projections are also in the realm of fantasy.

Writing at the AEI blog, James Pethokoukis surveys the wreckage:

All in all, Obama has proposed some $1.6 trillion in new taxes over ten years, taking tax revenue as a share of GDP to 20.1 percent in 2022 vs. a historical average of 18 percent. And despite all those new taxes, Obama’s plan would still add $6.7 trillion in new debt and make no progress in lowering the nation’s total debt levels as a share of output. The debt-to-GDP ratio is predicted to be 74.2 percent this year and 76.5 percent in 2022.

At the same time, federal spending would never fall below 22 percent of GDP. Indeed, Obama —  if he serves two terms — would be the first U.S. president in history to spend 22.0 percent or more of GDP for eight straight years (and then beyond). And keep in mind that these debt and spending numbers claim about $850 billion in savings from unwinding the wars in Iraq and Afghanistan, spending about a quarter of those phony “savings” on highway funding.

Pethokoukis also points out the cynically dishonest projections for economic growth upon which much of the budget is based: 3.4% growth in 2015, 4.1% in 2016, 4.1% inn 2017, and 3.9%  in 2018. Pethokoukis notes that the “U.S. economy has only seen a run like that three times in the past four decades. And the Obama Boom is supposed to happen amid rising tax rates, interest rates, and debt? Good luck, Mr. President.”

No, James. Good luck to us. We’re going to need it if we’re going to survive this assault on capitalism from a president who has presided over the worst economy in nearly 80 years.

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  • oldtimer

    You vote for those who say they will do one thing then do the opposite. I agree we need to help those that are not employeed, but the payroll tax cut is not the way. I doesn't help the employeed very much at all. But it does put less money into Social Security and Medicare, but than again that's the plan, destroy these programs. Instead of taking money directly out, as has been done in the past, just don't put money in. There is so much waste, and programs funding idenitcal programs and now the Republicans chicken out. Now what!

  • Steve Chavez

    OBAMA is sssssooooo concerned for WOMEN when he put the Catholic Crucifix in a Jar of Urine AND THEN GIVES $800 MILLION TO ARAB SPRING, a movement that treats women like a Jar of Urine???

    If you go to the youtube video of Obama's Cairo speech, around the twenty minute mark he that radicalism is NOT the way for their future BUT LOOK AT HIM CLOSELY, HIS EYES, HIS MOVEMENTS AND YOU WILL SEE A SUDDEN CHANGE. HE IS SECRETLY TELLING THEM THAT RADICALISM IS THE WAY and sure enough, Egypt was the first to go through radicalism.

    THE $800 MILLION WILL BE USED TO PROMOTE "DEMOCRACY" like electing the likes of HAMAS and now the MUSLIM BROTHERHOOD which will take that region back decades and then centuries into a HATE AND RADICAL SOCIETY and where women will be treated WORSE THAN DOGS!

  • davarino

    This "president" is trying to destroying this country. God I hope we can stop him in November. Its a perfect setup for the new president. All he has to do is reverse everything O did and the economy will take off with growths that he has predicted above, or more.

  • Brujo Blanco

    Comrade Obama has money for our sworn terrorist enemies while he is attempting to cut medical benefits for retired military. He is a typical commie. He is intentionally flushing our country down the toilet and he is doing it in our face. It seems that those who have earned benefits will have to do without or pay theough the nose. Those who do nothing will get everything for free.

  • BLJ

    The man is a Marxist loving Statist. From the same cloth as good people like Lenin and Stalin. The sad thing is at least 50% of the population is either too stupid or drugged up to realize what he is doing (some of these people post here, they know who they are).

    If he gets another 4 years America is finished. All by the hands of some vile, retched lowlifes. I hope after they die they rot in hell.

    • trickyblain

      So, when Obama is elected to his second term and serves it out, are you going to come back here in 5 years and say "man, I was really off the rails on that 'America is finished' craziness"?

      Or just say — "America is really finished, it's just that everyone but me and a couple FPM bloggers are too stupid and drugged out to see it"?

      How has your life changed so drastically over the last three years that you would make so dire a prediction?

      • BLJ

        I have read enough of your posts to know that you live in a fantasy land. If Obama gets re-elected it will be dumbasses like you who will be crying the loudest. You fit the profile of the idiots Team Obama is hoping get him that second term.

        • trickyblain

          Ah, yes. I remember you now. The hysterical person who likes to call names behind a keyboard.

          I was just wondering how your life has been so damaged under Obama. What did he do do you? Be policy specific and try not to go all tourettes on me. You sound like the hard-lefties who thought Bush would never leave office.

          I'm in fantasy land because my life is more or less exactly the same as it was under Bush (and Clinton)?

          lol

          What do you think is going to happen if he gets re-elected?

          Oh, and f you think I'm a die-hard Obama fan, you're the one living in fantasyland. I'm really not a fan of politicians in general.

          • BLJ

            I will meet you anywhere if you want to talk face to face. No need for a keyboard. If you are half as smart as you think you should be able to see what Obama's real agenda is.

            I guess sidestepping the Constitution and Congress on a regular basis doesn't bother you. Running up record debt so that future generations (not to mention this one) are screwed is OK as well. Then just toss in a total disregard for America's real allies.

            Yeah, you are right I am just a hysterical person with tourettes. It must take one to know one. For someone who isn't a "die-hard Obama fan" your track record here sure seems like it.

            Have a nice day.

          • trickyblain

            The last CiC that didn't sidestep the Constitution and Congress was Washington. Our second president, Adams, implemented the ALien and Sedition Act. Unconstitutionality unrivaled by anyone pre-Lincoln. The third president — his arch enemy and target of said Act — doubled the territory of the US. Where in the Constitution does it grant the power to buy territory?

            I agree with you about spending — he's made a bad situation worse. But keep in mind that deficit spending has been a necessity (for status quo spending levels) since Reagan lowered the top tax rates and shifted to borrowing. Obama has done nothing about it – buy cutting spending or raising taxes. I disagree with him on a whole mess of other items as well.

            Where I defend Obama (as I did when liberals to the left of me compared Bush to Hitler) is where folks go way over the top — talking about "secret agendas," comparing him to Mao, not letting go of the idea is ineligible through birth.

            From the middle, the rhetoric of the left under Bush and the right under Obama looks mighty similar.

            And if you want to meet face-to-face, let me know if you're ever in Sacramento. We'll have a beer!

  • AntiSharia

    There won't be an America left if he gets reelected. I don't care who the GOP nominee is, they have my vote.

  • pagegl

    I agree, but please realize that Obama doesn't give a rat's patoot what the Constitution says.

  • oldtimer

    What I mean is help them find jobs, help business to expand by making it easier to do so. I believe like the Bible says, you don't work, you don't eat… but goverment needs to stop making it so hard on small companies, so they can hire and expand, and Obamacare sure isn't helping.

  • trickyblain

    At what point does one become a "wealth creator." It's such an asinine term. Anyone who works and works well is a "wealth creator." The right looks to the ultra-rich as if they are some form of benevolent deity — as if they are on another level than the rest of us. They create jobs, wealth, life! They don't need to play by the same rules. Don't upset them, they might leave!

    I, personally, have no problem with the uber-rich. I actually hope to be there someday. But to say they shouldn't have to pay taxes at the same percentage as a person making $80k is insane.

    • mrbean

      Production must precede distribution you idiot trickydik otherwise disaster follows. People who invest capital in industry with risks is what creates wealth and jobs when successful. The government creates dependency classes who are supported by wealth seized by force from those who produce it – which in turn takes away capital from investment to create wealth and jobs. You are a retard with you tongue up Obama's A$$!

  • M. Archer

    I have never known a "political" figure to have such a glaring conflict with integrity as our current Presidential aspirant.At least if he were an avowed follower of the Islamic way of treating the infidels with disdain, we could chalk his record of lying up to the permission given in the Koran to followers to not worry about what you say to the infidels. It means nothing to "misrepresent" as long as your goals for change are acheived. The folks who voted him into office, some 53 million, I believe, must of imbibed on the same koolaid because he did not tell any one specifics of what "change" meant: and they voted for him anyway!!?? Now his lips are moving again and he even put it in writing- I can only hope the 53 million can read, and snap out of their dreamscape in Nov. Please!

    • jbiafra

      He is an avowed follower of taqqiya. This much is obvious. Why is this so hard for people to believe? The prince of Saudi Arabia paid for his Harvard Law School tuition in full and pulled strings to get him in. The former Manhattan Borough president (at the time) discussed this on tv – he wrote a recommendation for him sight unseen – because it was requested of him by the prince. He is a trojan horse for much, much bigger forces who wish to do us enormous harm, and they are. Our debt is 109% of our GDP at the moment and it is still being ratcheted up by this clown.

  • WilliamJamesWard

    It makes no difference what Obama claims, every action he takes and gets away
    with will be part and parcel to the overall disaster his administration has been.
    Nothing the man says can be believed, nothing about him stands up to scrutiny,
    he is more shadow than real, the only hard Obama evidence is loss to the
    American people through economic destruction, moral devaluation, ethical
    ruin and societal failure…………………………………………………..William

    • Knucklehead

      Amen! Well said!

  • pickles

    Barack Obama is living in a Leftist-liberal fantasy. He wants to import the failed democratic- socialist principles of the European royalty.It is bizarre that Obama would try to force a form of European socialism on Americans as we watch Europe try to save itselves from the financial ruin of that same philosophy.

    Obama describes his programm of higher taxes on the wealthy to bankroll more government spending as “a recipe for a fair, sound approach to deficit reduction and rebuilding this country”.

    But he ignores reality.

    He neglects to recognize the US citizen's vision of themselves as promotors of individual achievements,competitors in business and encouragers of self-determination.

    While he preaches fairness and lists endless ways in which the government should intervene in every aspect of daily and economic activity,we can hear echoes of collapsing Marxist,Socialist,Facist and communist governments from the past.

  • pickles

    Societies are complex.Obama's childlike stubbornness,uncontroled spending and unbalanced concept of fairness shows his lack of understanding of American ideals,an inability to compromise and inexperience at problem solving.His Robin Hood idealism neglects to take into account that the hero was still a thief.

    When a government takes an ever expanding proportion of the proceeds that entrepreneurial activity creates and attempts to redistribute it in the form of welfare programs and public spending projects, the effects are far reaching,complex and perverse.
    It is obvious that the people from whom the wealth is taken will become less willing to incur the risks that entrepreneurial investment involves – invariably producing less,gaining less wealth and tax revenues.

    But the most damaging effects are to the beneficiaries of this “fairness”.Creating and expanding a dependent social strata that has no responsibility or investment in their environment,society or government,within a society that values independence,breeds financial class separation and resentment.

    • jbiafra

      Childlike? Childlike is taking your milk and throwing it on the floor, not spreading fascism and communism, destroying a constitution, declaring war on Christians and Jews, pitting race against race and income group against income group, initiating voter fraud, and oh – his first act, the one no one seems to hold him responsible for – working as a legal trainer for ACORN to teach community organizers how to threaten banks for not approving subprime loans. He and his friends are the primary reason our economy crashed in the first place – and he personally made the third largest profit from the debacle. LIttle Barry, puppet to the stars.

  • pickles

    There is a huge difference between earning a livelihood and being provided with it.The assumption that all created wealth belongs to the general population,state and government to spend on benefits,job creation schemes,perks and special interest projects is a recipe for societal decay.As we have witnessed in the EU and numerous US cities.The United States is a country that was invented to free people from domination and persecution.Our constitution and political institutions are designed to prevent the federal government from oppressing our individual rights and usurping our responsibilities.

    Our history is a road map of successes and failures,victories and defeat and a long struggle towards equality,growth and improvement.

    Currently the top 1 % of earners pay 1/3 of all federal taxes in the US.
    Only 48.5% of citizens pay taxes.We've taken a wrong turn and are heading for a dead end with a driver who is busy texting.

    Under the Obama administration our representatives have ceased to stand by our principles.We are suffering from a loss of individuality,civility,dignity,purpose and identity.__Are we willing to give up the greatest democratic experiment in history ,before it has reached its full potential, for an imitation of failed European Socialism ?

  • pickles

    According to the US Debt Clock Time Machine, in the period from 2000-2004, we gained about 10 million in population and 4 million in the workforce .

    From 2008-2012 we gained 9.5 million in population and the workforce shrank by nearly 5 million.

    How many new "1%'ers" are born every hour,how many jobs are created and how many children are born into welfare ?

  • jbiafra

    So what does this guy have to do to convince members of congress that he's a dictator? Take them out with a glock?