Tax Increases Outlined

ABC’s Jake Tapper has the details:

  • $3 billion over ten years by eliminating a tax break for corporate jet owners (which, officials noted, is not the same thing as the incentive in the stimulus bill for businesses to buy assets such as planes);
  • $20 billion from treating as regular earned income the “carried interest” hedge fund managers make;
  • $45 billion by eliminating oil and gas company subsidies;
  • $60 billion from eliminating a business tax break known as LIFO (last in/first out accounting); and
  • $290 billion from capping at 28% the amount Americans who earn more than $200,000 ($250,000 for a family) can make deductions for all itemized deductions, such as for charitable contributions or mortgages.

As evidence by President Obama’s press conference yesterday (we’ll have a details analysis on that tomorrow), he sees hiking taxes on a weak economy and playing class warfare as the answer.

It’s not.  And it bears repeating – we have a spending problem.

If the President is concerned about the complexity of the tax code, he should propose comprehensive reform.  Targeting one section of the tax code, ignoring others and larding up others is not the solution.

Read Heritage Action’s letter to Congress to see where we stand.


Please Share Your Thoughts

2 thoughts on “Tax Increases Outlined

  1. Total that all up and it has almost no impact in an over $1.X trillion dollar debt. This raise in taxes have little to no impact on the debt, yet in terms of business and the wage earners in that salary range the impact is huge. Rather then doing a critical or risk analysis of the outcome of this decision they are seeing this in terms of a raise in “revenue” (think tax man) and that much less to cut.

    Obama doesn’t lead, he dictates, drops the ball on his administrations lap and goes out and does the fun stuff. If I were Harry Reid or a member of obama’s administration I would really resent the man. Real leaders surround themselves with knowledge and use it. Real leaders appreciate different points of view and appreciate the input and perspective. Real leaders know that the ultimate success or failure fall on their shoulders, taking responsibility for his teams actions, and decisions. There is no shrugging off this responsibility in the real world. A business, a team, a group is only as good as it’s leader.

    When a manager or leader needs to make a decision, the first act is to gather input from his team, then do a risk analysis. If we raise the tax rates on these people by this much for this reason, what is the affect on that reason, both positive and negative. What is the affect on those that I am taking the “revenue” from? Both positive and negative?

    This decision needs to be trashed and the thinking needs to go back to the beginning because the impact on the debt is so minuscule that it won’t amount to a hill of beans. The impact to businesses and personal wealth, savings and spending from those who the “revenue is taken from, huge. Especially when you consider all the regulations, future tax hikes in both fed and state taxes, cost of one size fits all regulations, healthcare costs, unstable economy, possible job loss, etc.

    I’m not even going to discuss the hypocrisy of a stimulus for purchases of private jets and then turning around and penalizing the people that bought one. I don’t even have a college degree but I have experience in the world, having to think through decisions I make in my private life and in my business life. It isn’t rocket science, it is simply common sense. Obama avoids the tough stuff,not able to see anything else besides his ability to spend an unlimited amount of money. His bill is coming due, he has GOT to go. In the meantime congress needs to start giving him the dose of reality he will face by zipping up the checkbook.

  2. 350 billion (approximate Obama proposals) barely makes any dent in the trillions of deficits!
    And how many more jobs will be lost when top
    income earners stop spending and investing.

    When is congress going to stop penalizing couples ie when a limit is proposed(200K) it should be 400k for couples!

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