The Folly of Taxing the Rich

President Barack Obama has proposed raising taxes on the rich to put America’s fiscal house in order, but critics say federal spending is so massive that the wealthy don’t have enough money to cover the nation’s unprecedented debt.

In an interview with MSNBC’s Andrea Mitchell, Rep. Tom Price (R-GA) said President Barack Obama’s plan to raise taxes on the wealthy would only generate enough revenue to fund the federal government for eight days.

“The president’s plan to increase taxes on the upper two percent covers the spending bytax_the_rich this federal government not for eight years, not for eight months, not for eight weeks but for eight days. Eight days only,” said Mr. Price. “It’s not a real solution. So, again, I’m puzzled by an administration that seems to be more interested in raising tax rates than in gaining economic vitality.”

The problem is that the rich don’t have enough money to put so much as a dent in America’s $16 trillion national debt. “If the IRS grabbed 100 percent of income over $1 million, the take would be just $616 billion,” writes John Stossel. “That’s only a third of this year’s deficit. Our national debt would continue to explode.”

Still, Mr. Obama’s supporters persist in proposing tax hikes on the wealthy. On Sunday, billionaire Warren Buffett proposed a minimum tax for America’s top earners. “We need Congress, right now, to enact a minimum tax on high incomes. I would suggest 30 percent of taxable income between $1 million and $10 million, and 35 percent on amounts above that.”

There’s just one problem with such an approach, says author Mark Steyn:

obama-and-the-buffett-ruleIf you took every single penny that Warren Buffett has, it’d pay for 4-1/2 days of the US government. This tax-the-rich won’t work. The problem here is the government is way bigger than even the capacity of the rich to sustain it. The Buffett Rule would raise $3.2 billion a year, and take 514 years just to pay off Obama’s 2011 budget deficit.

Indeed, even Mr. Buffett seems to concede that he and the president’s “soak the rich” proposals are more an act of political theater designed to generate an emotional response than serious solutions: Mr. Buffett told Matt Lauer he believes his proposal would boost the “morale of the middle class.”

From the Common Constitutionalist: The facts are the facts. No matter how much spin Obama puts on it. The republicans, not wanting to try to educate the public, are jumping on the “Revenue” bandwagon. (Always remember, revenue equals tax increases).

Moderate republican Lindsey Graham told ABC’s This Week on Sunday, “Republicans should put revenue on the table. We’re this far in debt. We don’t generate enough Lindsey Graham revenue.” Rep. Cole said on Tuesday, “I think we ought to take the 98 percent deal right now,” and allow taxes to go up for higher income earners.

Rep. Peter King told NBC’s Meet the Press on Sunday, “[The]  bottom line is we cannot have sequestration. We can’t go off a fiscal  cliff. We have to show the world we’re adults. … I think everything  should be on the table. I myself am opposed to tax increases.”

It appears to me Obama and the democrats have already won. A crisis has been created, on purpose, I might add, and the republicans will do what they always do. Whether it’s the end of the world scenario of TARP, the stimulus, the debt ceiling or this. They keep giving ground and the dems keep taking.

Let me put this “Tax the Rich” nonsense into further perspective. The federal government currently spends 9.5 billion dollars per day. Are you getting the magnitude of that number.

Now lets reinject John Stossel’s number. If we took every dime the rich makes it would total $616 billion. That would fund the government for about 65 days. What do you do on powerballthe 66th day? You’ve already taken all the income.

Let’s put some more perspective on it. We all heard about the huge Powerball jackpot this past week. Those 2 lucky winners are now rich beyond their wildest dreams. The cash payout for each is about $160 million give or take. That’s a lot of money unless one is trying to run the government. That whopping $160 million could run the federal government for less than a 1/2 hour. How’s that for some perspective.

This problem cannot and never will be solved until the size of government is slashed. Not just the fat trimmed, but cut to the bone. The only way to do that is to starve it of revenue.

We are going over the fiscal cliff, one way or the other. It’s just a question of when at this point.

You best prepared.

Taxing Ammo

Chicago Figures Out Cause of Homicides: Untaxed Bullets

by:

Chicago residents worried about the city’s soaring homicide rate can rest easy. After painstaking consideration during what was no doubt many rounds of double martinis, officials are at last ready with an answer.

Just tax bullets, says Cook County Board President Toni Preckwinkle. She has announced she will submit a budget proposal next week that would slap a nickel tax on each bullet sold and $25 per firearm.

Chicago’s crime families immediately went into conference to examine the results of Preckwinkle’s proposal on their budgets and announced they would have to cut back gun murders by at least 15 percent and shift some more business into the concrete galoshes department to compensate.

Clearly, officials have the bad guys on the run.

I have a theory that most liberal grownups were once those children who somehow always lost when playing cops and robbers:

Future conservative: “Bang! Bang! You’re dead!”

Future liberal: “Am not!”

F.C.: “Are too!”

F.L.: “Darn! One day, I will get even! I’ll ban your guns!”

F.C.: “Bang! Bang! You’re double dead!

So far this year, Chicago has racked up 409 homicides compared with 324 during the same period in 2011.

Officials estimate the tax would bring in about $1 million to the cash-strapped city, but denied that the proposal was just about creating more revenue.

Richard Pearson, the executive director of the Illinois State Rifle Association, had to point out the obvious, that the tax wouldn’t do anything to address gang violence.

“If she wants to get to the people causing all the problems she ought to put a tax on street gangs,” he said. “All this is going to do is drive business out of Cook County, into other counties, Indiana and Wisconsin.”

But Pearson and other critics are looking at the situation without the benefit of the liberals’ world view, in which guns kill people and criminals are law abiding citizens.

If Chicago really wants to get tough with criminals, maybe officials should consider resorting to the ultimate crimefightiing tool: a rolled up newspaper and a stern “No!”

I’m sure that would work.

Obamacare is Coming! Hide Your Wallets!

These are the Top 5 Worst Taxes ‘Obamacare’ Will Impose in 2013

from:  at The Blaze

The Grover Norquist-founded Americans for Tax Reform, a 501(c)(4) lobbying group that opposes “all tax increases as a matter of principle,” on Friday released a list of what, they say, are the top five worst taxes The Patient Protection and Affordable Care Act (i.e. “Obamacare”) will impose on Americans in 2013.

Here they are [all block quotes via the report]:

The ‘Obamacare’ Medical Device Tax

Americans For Tax Reform Releases a List of the Top 5 Worst Taxes Obamacare Will Impose in 2013Tax Increase: $20 Billion

Medical device manufacturers employ 409,000 people in 12,000 plants across the country. Obamacare imposes a new 2.3 percent excise tax on gross sales — even if the company does not earn a profit in a given year. In addition to killing small business jobs and impacting research and development budgets, this will increase the cost of your health care — making everything from pacemakers to prosthetics more expensive.

The ‘Obamacare’ ‘Special Needs Kids Tax’

Americans For Tax Reform Releases a List of the Top 5 Worst Taxes Obamacare Will Impose in 2013Tax Increase: $13 Billion

The 30-35 million American who use a Flexible Spending Account (FSA) at work to pay for their family’s basic medical needs will face a new government cap of $2,500 (currently the accounts are unlimited under federal law, though employers are allowed to set a cap).

There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.  There are several million families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. This Obamacare tax provision will limit the options available to these families.

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The ‘Obamacare’ Surtax on Investment Income

Americans For Tax Reform Releases a List of the Top 5 Worst Taxes Obamacare Will Impose in 2013Tax Increase: $123 Billion

This is a new, 3.8 percentage point surtax on investment income earned in households making at least $250,000 ($200,000 single).  This would result in the following top tax rates on investment income:

The table above also incorporates the scheduled hike in the capital gains rate from 15 to 20 percent, and the scheduled hike in dividends rate from 15 to 39.6 percent.

The ‘Obamacare’ ‘Haircut’ for Medical Itemized Deductions

Americans For Tax Reform Releases a List of the Top 5 Worst Taxes Obamacare Will Impose in 2013Tax Increase: $15.2 Billion

Currently, those Americans facing high medical expenses are allowed a deduction to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI).  This tax increase imposes a threshold of 10 percent of AGI. By limiting this deduction, Obamacare widens the net of taxable income for the sickest Americans.  This tax provision will most harm near retirees and those with modest incomes but high medical bills.

The ‘Obamacare’ Medicare Payroll Tax Hike

Americans For Tax Reform Releases a List of the Top 5 Worst Taxes Obamacare Will Impose in 2013Tax Increase: $86.8 Billion

The Medicare payroll tax is currently 2.9 percent on all wages and self-employment profits.  Under this tax hike, wages and profits exceeding $200,000 ($250,000 in the case of married couples) will face a 3.8 percent rate instead. This is a direct marginal income tax hike on small business owners, who are liable for self-employment tax in most cases. The table below compares current law vs. the Obamacare Medicare Payroll Tax Hike: