The Budget, Get Ready For New Taxes

508.) President Obama put out his budget for 2011, this was the moment of truth, the time for us to see whether or not he is serious about fighting the deficit and debt that he has racked up. His new budget includes in it $3.73 trillion dollars in spending,  with a deficit of $1.65 trillion dollars, reflecting the wreakless spending habit of the government over the last several years. But don’t worry he pledges it has $1.1 trillion in deficit savings over the next ten year.  let us examine this claim of $1.1 trillion in deficit savings. The word savings implys that you are keeping money in your pocket, and plan on using it later, maybe to pay off a debt. So does this new budget really have $1.1 trillion in spending cuts? The answer is no.  Hidden inside of the budget are 15, yes 15 new taxe increases, which according to business insider these taxes could increase the tax burden of the citzens of the United States by $1,500,000,000,000.00 (1.5 trillion) over the next ten years. After doing some digging the group Americans for Tax Reform identified the fallowing taxes.

  • Raising the top income tax rate from 35% to 39.6%, basically undoing the compromise at the end of 2010 to keep tax rates the same. At this rate most small businesses income would face taxation.
  • Raising captial gains and dividends tax from 15% to 20%
  • Raising the death tax from 35% to 45%.  He also proposed lowering the exemption rate from $5,000,000 to $3,000,000. (that is a $98 billion a year tax increase)
  • New Bank Taxes ammounting to over $30 million over ten years
  • Capping the value of itemized deductions at the 28% bracket rate.  This will effectively cut tax deductions for mortgage interest, charitable contributions, property taxes, state and local income or sales taxes, out-of-pocket medical expenses, and unreimbursed employee business expenses.  A new means-tested phaseout of itemized deductions limits them even more.  This is a $321 billion/ten year tax hike
  • New international corporate tax hikes totaling $129 billion over ten years
  • New life insurance company taxes totaling $14 billion over ten years
  • Massive new taxes on energy, including LIFO repeal, Superfund, domestic energy manufacturing, and many others totaling $120 billion over ten years
  • Increasing unemployment payroll taxes by $15 billion over ten years
  • Taxing management capital gains in an investment partnership (“carried interest”) as ordinary income.  This is a tax hike of $15 billion over ten years
  • not letting companies deduct the cost of punitive damages from a lawsuit settlement. A nice gift to trail lawyers. This is a tax hike of $300 million over ten years
  • Increasing tax penalties, information reporting, and IRS information sharing.  This is a ten-year tax hike of $20 billion.

You can’t claim savings by jacking up taxes over the next ten years by $1.5 trillion dollars. He is not saving any money he is just taking it from people who provide services to the country. He is taking it from people who create jobs in this country. He knows people do not wnat their taxes to go up, after all there is a pesky group who like to meet up in the streets of D.C. who are outraged by the spending of this government and afraid of the tax hikes they knew was coming. They just won really big in the november elections, the TEA Party. I think people forget that TEA is an acronym standing for Taxed Enough Already. Knowing that this highly popular group will be outraged by the new taxes he decides to hide them in his new budget, and tell us that we are actually saving money. When in truth there will be no savings, there will be an increase in spending.  President Obama’s new budget was supposed to save us $1.1 trillion over the next ten years, these new taxes amount to $1.5 trillion dollars, if those taxes work as the progressives think they will with no negative affect on the economy, shouldn’t the deficit go down by $1.5 trillion?  There is in fact a $400,000,000,000.00 increase in spending in the bill.  So much for fighting the debt, I guess we are going to fight the debt by spending more money. I do love the first tax increase in that list a income tax hike on the employers of the country.  President Obama has decided that if you make money and have employees you need to give up your income so that he can spend more money, oh I am sorry we are supposed to use new fancy lingo sense spending is highly frownd upon,  he wants your money so he can invest more.

Under President Obama’s new budget proposal he is going to “save money” by raising taxes on Coal and Oil companies. He claims it will bring in $46 billion over the next ten years. A tax increase is not a magical source of money. That money comes from the pockets of the companies they are levied against. What a tax hike is, is an increase in opperating costs. In the real world if opperating costs go up profit goes down so changes have to be made. Employees are fired, wages are cut, and the price we pay goes up. So raising taxes on coal and oil, those prower our country.  Oil makes plastics, think about everything you buy that has plastic in it, the price of all of those items will go up. Oil makes gasoline and disesel, a tax increase on oil will definatly cause prices at the pump to go up.  Not only to fuel prices go up in this case, but the prices of everything transported by a gasoline or disesel powered truck goes up, as it affects opperating costs a crossed the board. If that is not bad enough lets think about that tax increase on Coal. Coal is used to make steal, steal is used in road construction, building construction, rail way construction, and in our automobiles, how will an increase in costs of those items affect the nation? President Obama wants to double down on his spending on infinistructure “invetments”, how will an increase in the cost of steal affect our national debt? The more dangerous impact from this tax hike will hit us hardest when we go to pay our electricity bill. 54% of our nations electricity is produced in a coal fired power plant, 54%. Over half of us will see our electricty rates “necessarily sky rocket”.

President Obama in his quest to “lower the deficit”, has had to make some hard choices, raising taxes on coal and oil, raise taxes on the evil rich, but by far the hardest he had to make was the decission to skip entitlement reform and instead choose to cut $78,000,000,000.00 from the pentagon’s budget. So far it looks like President Obama is going right down the progressive check list of things they hate and he is either cutting funding, or raising taxes on it.

509.) President Obama’s new budget proposal has massive increases in new infrastructure spending. He wants $556,000,000,000 to improve the countries highway, transit, and rail infrastructure.  I may be wrong but I am pretty sure that in 2009 we passed a $787,000,000,000.00 bill that was supposed to address many of the same issues. Under the first bill we were suppossed to get high speed rail, resurect the highway system, what happened why do we need to double down? Was the porkulus bill not effective, or wasted?  Could the reason for the double down be that the increase in government infrastructure spending would help out government unions?  President Obama seems to be addicted to spending.

  1. mcbery said:

    The whole thing makes me feel sick.

  2. @mcbery – it does scare me, tax hikes and more government spending are never occumpanied by economic prosperity. The latter might cause an economic blip but it dissappears once the funding dries up.  Why anyone would think making it more expensive to do business in America would help stimulate the economy is beyond me. 

  3. alwateen said:

    change is what all we need – lolz…

  4. @alwateen – well yes we do need change, but not to something new, we need to change to something that our fore fathers knew and understood.  That man is capable of ruling himself. We need to change our current additude of “someone should do something,” to “i am going to do something”. 

  5. @RaymondLY – I am going to ask you to please edit that and remove the profane language, or it will be deleted.

  6. It ain’t the same ocean, is it? Hang on, it’s going to get a lot worse.

  7. The retirement pension debt of Chicago’s city workers amounts to $42,000 PER Chicago household. By 2023, 53% of Chicago’s city budget will go to paying city employee pensions. Detroit has 24 days of cash on hand and Cleveland has -9 days of cash on hand. WE are a sinking ship my friends, unless we get rid of these lunatic liberals who are killing us.

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