Obama-“the idea that “math” forces him to hike taxes on high-income earners to cover his ginormous deficit spending, in Obama’s world “math” is just another work for redistribution”.
Obama’s tax plan call for $1.6 trillion in higher taxes over the next decade—which translates to $160 billion per year, $80 billion of that come from letting the Bush tax cuts expire, the rest would come from stripping various tax breaks and benefits.
$160 billion a year—miniscule amount of money when placed next to the towering inferno of Obama spending.
Then we have the Buffet rule—upping the tax on high incomes to around 30% on taxable income between $1 million and $10 million, and to 35% on $10 million plus. According to Heritage, buffet would generate, at the most a mere $4.7 billion a year in extra tax revenue. James Pethokoukis of the American Enterprise institute noted—“in the end the Buffet rule is about politics and not economics so I guess I shouldn’t except it to make much economic sense”.
We just need to check out what happened in Great Britain, according to a 12/12/12 report in the UK telegraph more that 16,000 British taxpayers declared an annual income of more that L1 million in 2009-10. Enter leader Gordon Brown who announced a new 50% top rate income tax. One year later the number of Brit’s millionaires taxpayers fell to 6,000 a loss of 10,000! They either fled the country or deliberately slashed their own income to avoid paying the taxes. The British government actually lost L7 billion.
Targeting the rich will merely force more to the uber-wealthly to find offshore tax jurisdictions, avoid US taxation altogether and thus result in even lower budget revenues for the US.
When individuals face higher income taxes, they report less income buy tax shelters and hide their money.
Of 115,000,000 total US households only a tiny 1.93% have an income of $250,000 or above. The total income of all $250,000+ households is $1.412 trillion, less than half what the regime spends in one year. Of the top 1% of high income earners ($380,000+) less than one quarter are millionaires, according to economist Veronique de Rugy. Millionaires accounted for only 0.17% of the tax returns filed in 2009, and reported a total income of $727 billion. According to Forbes the 400 wealthiest individuals in the country were worth a combined $1.7 trillion in 2012. And if confiscated would not even found 6 months of federal spending. The buffet rule targets by Biden’s reckoning the “tens of thousands and several millions of people”, who are paying less than the average federal tax rate for middle calls households. Even the liberal factcheck.org says there are only 4,000 such payers.
The WSJ most recent tax data all individuals filing tax returns in America and earning more than $66,193 per year have a total adjusted gross income of $5.1 trillion, and if the government again confiscated the entire adjusted gross income of these taxpayers plus all of the corporate taxable income in the year before the recession, it wouldn’t be nearly enough to fund the over $8 trillion per year the growth of US liabilities.
Government MATH, does it add up??
Sources-rush, wsj, Bloomberg tv, uk telegraph, heritage, forbes, cbo, national review