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Almost $1 trillion in new taxes

ABC's Jake Tapper is reporting that over the next ten years, President Obama's planned tax increases will cost we the people $989 billion. And as HughS previously pointed out, that staggering amount still won't be nearly enough to pay for all the new government spending that he wants.

For families earning more that $250,000 a year:

  • $338 billion - Bush tax cuts expire
  • $179 billlion - eliminate itemized deduction
  • $118 billion - capital gains tax hike

And check out the tax increases on domestic energy production, particularly oil and gas:

  • $5.3 billion - excise tax on Gulf of Mexico oil and gas
  • $3.4 billion - repeal expensing of tangible drilling costs
  • $62 million - repeal deduction for tertiary injectants
  • $49 million - repeal passive loss exception for working interests in oil and natural gas properties
  • $13 billion - repeal manufacturing tax deduction for oil and natural gas companies
  • $1 billion - increase to 7 years geological and geophysical amortization period for independent producers

There is simply no way that anyone can look at this proposal and not come to the conclusion that the Obama Administration wants to permanently cripple domestic oil and gas production. They've chosen instead to pour billions into fairy-tale energy schemes like wind power, biofuels, solar energy, and any other "green" energy idea that Al Gore and his fellow environmental hucksters can dream up; schemes that lack the efficiency, scalability, and deliverability that we already have with oil and gas. (I'll stop before I go off on a tangent)

HughS was also correct in pointing out that a significant number of families who earn $250,000+ are small business owners who are incorporated as S-corporations or sole-member limited liability companies. Sole proprietorships and "closely held" corporations report business profit/loss (Schedule K-1) or income and expenses (Schedule C) as part of their family's 1040 return. Another significant portion of this group are married professionals (architect married to an attorney, PhD engineer married to an RN, etc.). All of these families struggle -- they often need domestic help in order to cope with heavy professional workloads; they are trying to pay off graduate school tuition loans that can run into the 6-figure range quickly; they are trying to save money to buy a better house; they are trying to save money for their kids' college and for their own retirement, and so on. They are also the families who are more likely to purchase high end furniture, electronics, and cars. In short, most of these families are highly unlikely to have a vast Kennedy-Rockefeller-Carnegie-Gates-sized store of accumulated wealth.

And ironically, they are also more likely to have voted for Barack Obama. Other commentators have suspected that young, educated professionals who supported Barack Obama were drawn to his messages of social responsibility. Their financial worries were mitigated by Obama's campaign promises of tax increases only on the "wealthiest Americans," pay-as-you-go spending with every tax and spending increase offset by corresponding spending cuts, and his pledge to go "line by line" through the Federal budget and eliminate wasteful spending. Most of the younger professionals that I knew who supported Obama felt exactly that way; they were more concerned about Iraq, health care, poverty, and other social issues, and felt that it would be okay to pay a little more (they always said "a little more") in taxes if the money was spent fixing those problems.

Suckers.

We can't undo the election, but we can make our voices heard. In a little while I'll be heading off to the Oklahoma State Capitol to join dozens of other concerned citizens who are shocked by our government's reckless spending, and the mind-boggling amount of debt that we are piling up. Make your voice heard. Let your Congressional representatives know that you really do care about what is in their bills, and that you will hold them accountable for what they spend.


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Comments (28)

Time for R.E.M.: it's the e... (Below threshold)
Brad:

Time for R.E.M.: it's the end of the world as we know it.

This spending is not just i... (Below threshold)

This spending is not just irresponsible, but immoral. We cannot saddle future generations with this debt. It will destroy our economy to raise taxes in a recession and spend this much money while creating all this debt. Our dollar will be worthless by the time Obama is done.

Michael is right! Write you Congressman and tell him how you feel! We need to spread the word.

http://franklinslocke.blogspot.com/

The proposal certainly look... (Below threshold)
Mac Lorry:

The proposal certainly looks like Obama wants to get us off fossil fuels, which is a form of energy independence, but it delays by a decade or more the time when we can stop importing oil from outside North America.

What's Obama going to do when gas passes $4 on it's way to $6? Republicans will be hammering the airwaves with the "we told you so" message.

By Obama's own accounting, the wealthy people he wants to tax control most of the jobs in this country. They may just decide to expand overseas even if it costs more in order to punish Obama and democrates. They know that if they keep or create jobs in the U.S. it just encourages liberals to raise their taxes even more. I just hope business people learn their lesson about giving money to democrats.

The silver lining in this cloud is that it's looking more and more like Obama is a one term president. Republicans will then have a mandate to undo all of this nonsense and reverse the flow of subsidies to rebuild a competitive energy system.

That's just the first in... (Below threshold)
John Irving:

That's just the first installment of the reparations you rich rethuglicans owe us. My President will be taking more than just your money soon, you criminals.

Are you 12? We already know you're a racist idiot, but this seems to indicate you're also not even through puberty or out of the sixth grade.

No wonder you believe in the unicorns-farting-rainbows drivel the President campaigned on.

That's just the first... (Below threshold)
JohnMc:

That's just the first installment of the reparations you rich rethuglicans owe us. My President will be taking more than just your money soon, you criminals.

He is correct to a point. This is just the first installment on tax increases.

As we go along, it will become apparent that this isn't enough (as has already been written about) and more is needed. Then, the cap is lowered to $200k, then lowered again to $150k, then to $100k, etc. etc.

If people honestly think that these kind of tax increases will only apply to the $250k+ earners, then I have a great beachfront house in Oklahoma that I'd be glad to sell you for a small fee.

Justice69, Just curi... (Below threshold)
DaveD:

Justice69,
Just curious.....what time do your parents get home? There is no way you are a self- sufficient wage earner.

Time for R.E.M.: it's th... (Below threshold)
Parthenon:

Time for R.E.M.: it's the end of the world as we know it.

Oh for goodness sakes. Modest tax increases still far more conservative than any state in western Europe. Time to replace the Y2K bottled water and canned goods stockpiles.

Mr Irving:You shou... (Below threshold)
Bruce Henry:

Mr Irving:

You shoulda been here yesterday. This "justice69" character is someone doing an impersonation of "justice58," only more outrageous. His schtick is to post nonsense and get a knee-jerk response from conservatives who didn't notice the number change.

Don't feel too bad, though. Several of your fellow Rightwingers fell for it, too.

You got punk'd, too, DaveD.... (Below threshold)
Bruce Henry:

You got punk'd, too, DaveD.

Bruce it's hard to really b... (Below threshold)
Eric:

Bruce it's hard to really blame people for falling for Justice69 when there are so many trolls who post the same way for real.

As you point out it's an impersonation of Justice58. I would suggest that you go read some of Justice58's posts around the Internet, she was quite prolific during the Duke Lacrosse Hoax. Try as he might, Justice69 is just not as outrageous as the real thing.

Just trying to help these g... (Below threshold)
Bruce Henry:

Just trying to help these guys avoid any further embarrassment.

Well, I don't care who said... (Below threshold)
JohnMc:

Well, I don't care who said what and why, but my point is still firm...these tax increases will eventually lead to those much, much lower than $250k.

I knew Obama would win easily over any Republican in early 2008 (before he even had the DNC nomination). I hope I'm wrong, but I'm afraid that I'm going to be proven right.

At least the Constitution kicks him out after two terms.

Nuts! Oh well, hopefully I... (Below threshold)
DaveD:

Nuts! Oh well, hopefully I'll know better next time.

Oh for goodness s... (Below threshold)
ke_future:
Oh for goodness sakes. Modest tax increases still far more conservative than any state in western Europe. Time to replace the Y2K bottled water and canned goods stockpiles.

the problem is that in a lot of ways the US has been subsidizing western europe's socialism for years. defense and drug/medical research are only 2 examples. what happens when the golden goose(the US) stops laying the golden egss? that's what we are headed for.

'...and his pledge to go "l... (Below threshold)
GarandFan:

'...and his pledge to go "line by line" through the Federal budget and eliminate wasteful spending.'

Define "wasteful". Every other campaign problem has had an expiration date. Want to bet this one does as well?

I'm sure The Chosen One has already practiced the speech he will give where, like Billy before him, will cry real tears as he says that he had to raise taxes after all.....for everyone.

Get your extra $13 yet? I wouldn't spend it if I were you....unless of course you're one of those who doesn't pay any income taxes at all. The payroll tax charts have been changed to give you that money NOW. The income tax rates have not changed at all. Come April 2010, Uncle Barry is going to remind you that $13 is TAXABLE income. Cough it up.

Doctor Brucie, the only pun... (Below threshold)
Justice69:

Doctor Brucie, the only punk here is you. LOL!

If you think I'm "outrageous", then you're just pretending to be progressive and we don't need your kind in the movement. My President would be ashamed of you.

BTW, Justice69 meets the pr... (Below threshold)
mantis:

BTW, Justice69 meets the precise original definition of a "troll," which has since come to mean "anyone who is annoying or disagrees":

An electronic mail message, Usenet posting or other (electronic) communication which is intentionally incorrect, but not overtly controversial (compare flame bait), or the act of sending such a message. Trolling aims to elicit an emotional reaction from those with a hair-trigger on the reply key. A really subtle troll makes some people lose their minds.
Suckers, indeed.1.3 ... (Below threshold)
tyree:

Suckers, indeed.
1.3 trillion dollars in spending and 1 trillion in new taxes.

Remember when the left wing blasted Joe the Plumber for calling Senator Obama out on his "redistribution" of wealth? Well, the hope s what they get, the change is what we are left with.

Fiscal responsibility?
Has a new definition I guess. Why can't the left leave the dictionary alone?

While economic depression i... (Below threshold)
Clay:

While economic depression is bad for the private sector, and thus bad for the people, it is very good for the proponents of big government. Even if Obama knew how to end it, why would we suppose that he has the incentive to do so?

For decades, the private economy has been outrunning government. The private sector has taken over most of the command posts in society, from security to communications to all forms of technological progress. This has annoyed the state to no end. Now is the time for reprisal. the state is using the excuse of stimulus to help not society but itself. The state is certainly being stimulated here, but the private economy -- the only real source of social wealth -- is being drained in many ways.

The most direct way in which stimulus is helping the state is by transferring resources from the private economy to the state itself in a zero-sum game. From Moody's comes direct evidence. While the rest of the nation's economy is shrinking, the economy of Washington, DC, is growing at a 2.5% pace. Northern Virginia and suburban Maryland are sharing in the glee, as government gains at the expense of everything else.

Right now is the time to be talking about this. Not just to your representative, but to your barber, your mechanic, your colleagues, your family, to anyone who will listen, and even to those who won't. We have to drown out the voices of those who are for this power drain from the true producers of wealth. Do it - now.

parthenon - "Oh for goo... (Below threshold)
marc:

parthenon - "Oh for goodness sakes. Modest tax increases still far more conservative than any state in western Europe. Time to replace the Y2K bottled water and canned goods stockpiles."

So who the hell wants to be like, or anything close to Western Europe?

Over the last two decades they have averaged twice the unemployment rate and half of the growth rate the U.S. has.

mantis - <a href="http://ww... (Below threshold)
marc:

mantis - Blogroach: Blogroach

noun. A reader who infests the comment section of a weblog, disagreeing with everything posted in the most obnoxious manner possible.

Feel better now?

b henry - "You got punk... (Below threshold)
marc:

b henry - "You got punk'd, too, DaveD."

Yeah, life's a bitch. Then you either marry one, get punk'd, or both.

Come on Michael Laprarie...... (Below threshold)
marc:

Come on Michael Laprarie.... when you have $900 million set aside for the Hamas Stimulus Plan the cash has to come from somewhere.

What better way than to jack-up taxes. (sarcasm tags not optional)

Feel better now?... (Below threshold)
mantis:

Feel better now?

Felt fine before, thanks. Not sure who you're referring to, but if it's me I assure you I can be far more obnoxious if I choose.

mantis - "Felt fine bef... (Below threshold)
marc:

mantis - "Felt fine before, thanks. Not sure who you're referring to, but if it's me I assure you I can be far more obnoxious if I choose."

Just offering a better description for the likes of j58 and her like-minded j69, pea[brain]3000, max and JFO.

Rest assured, we all know very well you can, and have been far more obnoxious to the point of being disemvoweled.

HughS was also cor... (Below threshold)
Smiles:
HughS was also correct in pointing out that a significant number of families who earn $250,000.

This is not as drastic as it sounds. If someone has a net income of more than $250K only the portion of their net income above $250K will be taxed at a higher rate. Thus, is someone earns $255K, only $5,000 of it will be taxed at the higher rate.

only $5,000 of it ... (Below threshold)
marc:
only $5,000 of it will be taxed at the higher rate.
Assuming that correct...

Gee, what a break... of the 5Gs something on the order of 1200 to 2000 of it will end up in Obama's pocket to "spread around."

Bruce it's hard to reall... (Below threshold)
Justice58:

Bruce it's hard to really blame people for falling for Justice69 when there are so many trolls who post the same way for real.

As you point out it's an impersonation of Justice58. I would suggest that you go read some of Justice58's posts around the Internet, she was quite prolific during the Duke Lacrosse Hoax. Try as he might, Justice69 is just not as outrageous as the real thing.

Eric,

I see you can't stop talking about me! Give it a rest, will you?




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