Obama to Propose ‘Buffett Tax’ on Monday; Update: $1.5 Trillion in New Taxes — ‘This is Not Class Warfare, It’s Math’
**Written by Doug Powers
No, not a “buffet tax” — that might come later as a “Let’s Move” initiative. This proposal will be a “Buffett tax” — as in Warren Buffett — who has called for the rich to pay a higher tax rate with plugged-up loopholes in an attempt to sacrifice even more money to Washington’s spending addiction:
(Reuters) – President Barack Obama, in a populist step designed to appeal to voters, will propose a “Buffett Tax” on people making more than $1 million a year as part of his deficit recommendations to Congress on Monday.
Such a proposal, among suggestions to a congressional supercommittee expected to seek up to $3 trillion in deficit savings over 10 years, would appeal to his Democratic base ahead of the 2012 election but likely not raise much in revenues.
[...]
Obama will lay out his recommendations in White House Rose Garden remarks at 10.30 a.m. (1430 GMT) on Monday and is expected to urge steps to raise tax revenue as well as cuts in spending.
Now Obama will be able to add “pass these tax increases” to the “pass this jobs bill” broken record so as to mix it up a bit.
But at least the “Patriotic Millionaires” might be about to get what they asked for, so there’s that little bit of economic schadenfreude. Just don’t get caught up in the stampede as they run to their accountants tomorrow to plan a way around these proposed new taxes they’ve been lobbying for.
It’s often been pointed out that Washington has a spending problem, not a revenue problem — and proposing something that might just chase more of America’s wealth overseas is the last thing we need, especially in this economy. Chances are Obama knows this won’t go anywhere, much like the jobs bill the tax increases would supposedly pay for, but the “Buffett rule” will be one more thing he can tell his diminishing base that he “tried” to do that Republicans blocked.
Update, Monday 1 p.m.: President Obama finished outlining his proposal a little while ago. Here’s the big picture:
In a blunt rejoinder to congressional Republicans, President Barack Obama called for $1.5 trillion in new taxes Monday, part of a total 10-year deficit reduction package totaling more than $3 trillion. He vowed to veto any deficit reduction package that cuts benefits to Medicare recipients but does not raise taxes on the wealthy and big corporations.
“We can’t just cut our way out of this hole,” the president said.
The president’s proposal would predominantly hit upper income taxpayers but would also reduce spending in mandatory benefit programs, including Medicare and Medicaid, by $580 billion. It also counts savings of $1 trillion over 10 years from the withdrawal of troops from Iraq and Afghanistan.
Obama added, “This is not class warfare — it’s math!”
For just a few examples of why I don’t exactly trust this administration’s math skills, see here and here and here and here and here and here.
Nancy Pelosi called the plan “bold,” which means it’ll cost a fortune and then some.
Update II: Here’s a reminder for President Obama: The last thing you want to do is raise taxes during a recession (even on the wealthy).
That’s advice Obama should heed. Why? Because he said it:
**Written by Doug Powers
Twitter @ThePowersThatBe
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Hey, where’s ‘Botox Nancy’ in all of this? She and her husband have quite a chunk of change (no pun intended) ready to be taxed. Is she going to step up with Warren Buffet and pay her fair share as a wealthy elitist capitalist?
That $1.5 million in new taxes is highly questionable. I heard earlier today from a bond fund portfolio manager friend whose office is reading through the legislation that municipal bonds will no longer be tax-free for anyone earning over $200,000 and that the dividend interest rate will also be raised significantly.
The problem is that abut 70% of all dividend and interest income is paid out to institutions and so, they wouldn’t pay taxes on any of it anyway. So if the taxes they figure on collecting doesn’t take that into account, their tax revenue forecasts are too high by whatever that 70% amounts to.
Once again, the rhetoric and promises bear no resemblance to what is actually in the bill. Collect the money on one story, redirect the money to union and corporate cronies.
I should add to my last comment that this is going to be a problem for states and other municipalities when they try to raise money. Stagflation will obscure the effect when ALL interest rates go up but how the trade at close to parity with other similarly rated debt will demonstrate the additional cost to taxpayers. Poor people don’t buy municipal bonds.
Capitalism when run by crony Marxists.
Barry is doubling down on stupid with this.
Did you guys know that buried within the pages of this nonsense are provisions for more CZARS?
http://townhall.com/columnists/luritadoan/2011/09/19/obama_proposes_new_czar/page/full/
That fact alone should be reason enough NOT to pass this moronic monstrosity. Barry better go on vacation today, FOREVER, and find some adults who know WTF they’re doing.
If BHO believes he knows better than us what to do with our money..I invite him to look at Solyndra once more.
With the WH apparently believing it’s a valid business model to sell something for $3 that you made for $6, I can’t see why.
Listening to Obama this morning I wondered, am I actually listening to the words of Jeremiah Wright?
I think that Obama’s speaches have now morphed into the hatefull rhetorical envy that Jeremiah Wright made his lifelong crusade.
Marxism Equals Total Govt Ownership –An Inevitable Result of Perpetual Deficit Spending
Why Liberals See Taxes as a Holy Sacrament & How This Destroys America
s tax revenue really the entire strength of a nation? In the Genesis story of Joseph in Egypt, to save themselves during 7 years of famine, Egyptians sold themselves into Pharaoh’s slavery in exchange for food, till all they owned was themselves. Likewise, today Obama proposes Americans avoid a contrived economic apocalypse by embracing his call for perpetual deficit spending and permanently skyrocketed tax rates. Like ancient Egypt, if Americans follow this vision, we will all end up slaves. Yet, we won’t be saved since the logical outcome is government will again own everything as we morph into default communism.
Perpetual deficits can only lead to fiscal insolvency. Yet, liberals claim towering public debt is efficacious, a sacred talisman, magically creating prosperity and peace. But, if better societies resulted simply from massive government wealth confiscation, paradise would have flourished in Russia, instead of the smoldering hell on earth the Marxists created. Bizarrely, leftist politicians warn we cannot stop spending tidal waves of borrowed money or unacceptable injustices will occur. The misuse of tax policy to create certain economic death for America meant to push us into socialism is the topic of this essay…
It doesn’t matter how many billions or trillions you give Wahington, try getting it out of them just where it went, and why nothng changed.
Just skimmed the comments so this might have already been brought up.
Why a new tax on the rich, we already have he Alternative Minium Tax that was initiated originally to get the handful of rich to pay, sadly it wasn’t indexed for inflation so entirely too many of us who make less the “Ones” target of 200k pay that as well as FICA.
Will the “Buffett tax” also not be indexed for inflation so those of us who are fortunate enough to be employed or have small businesses will be paying it as well as FICA, AMT in 5-10yrs?
Has any one else watched that video Drudge has linked
The EBT Card song
It has adult language but is so amazingly true
Life in Obama’s America is amazing
Life experience has taught me that the way lawyers do math and the way a mathematician does math is two different ways.
Dummy up taxpayers, this will not to dig into the rich pockets, those pockets are ours.
It’s the MATH, stupid. You are just too dumb to figure it out!!
The Obama Communist Democrats remind me of a conversation I had with my grandfather many, many, years ago:He was telling me his opinion of the most corrupt,greedy man in the county.(Modern Democrat Party)
“Son, he tries to come across as a nice guy but you need to watch him like a hawk! The man is dangerous because he has the belief that he is entitled to steal all the land that abuts his land! Never deal with him!Never let him get his greedy hands on our land!”
I’d like to point out that until about 150 years ago, there was no such thing as income tax.
The country did just fine without it until they needed to raise revenue for the Civil War, and it was seen as an emergency measure with a sunset date of 5 years.
Until about this time last century, all of the needs of the federal government were funded through trade tariffs. Even when they added the 16th Amendment for a personal income tax, it was targeted at the super-rich, at a rate of something like 1%. The government wasted it all, and it wasn’t long before they started increasing their demands to the point where we are today.
Spend-and-Tax Democrats have been at it for a hundred years and must be stopped.
Some smart Republican should introduce the Tax Relief For Secretaries Act, reducing the tax rate for everybody making less than $100,000. Let’s see Obama veto that one.
It’s not just any math either, it’s that newfangled demonicrat math. The same kind that says unemployment benefits and food stamps make jobs.
Anyone, well almost anyone can, add 1 + 1 = 2. It takes more than math.
Yeah. Let’s increase taxes on those who create jobs so they will pass on the costs to everyone else and create fewer jobs. It takes more than math.
Obama wants to be leader (spelled d-e-s-p-o-t) of a Third World America, and he’s on the right path.
Didn’t he say “meth”? I think that’s what he really meant.
“The meth.”
So…I had to go back to the “live” feed…I don’t think it’s exactly “live” anymore…
Anyway..NYPD is demanding that tarps tied to trees be removed (its raining in the NYC area today)….
So..the smelly, hairy, whiny and now wet hippies are calling for “GENERAL ASSEMBLY”…and drones all repeat “GENERAL ASSEMBLY” and decide what to do about NYPD’s demand….
I’m sorry if I find this thing too entertaining, it’s perfect with my morning coffee.
ooops…posted on wrong article…yikes, need more coffee.
I’d like for Obama and the “progressives” to
define exactly what “fair share” means to them.
In Biblical terms, your “fair share” is 10% (the tithe), and what you willingly give above that is “offerings”.
Using that perspective with respect to taxes, the “rich” are already paying multiple times their “fair share”, while the nearly 50% of our society who pay no taxes at all are the ones not paying their “fair share”. In fact, many of those not paying their “fair share” of taxes are also BEING PAID by our government in multiple forms of welfare.
Yes, our tax system is not “fair” right now. And Obama and the “progressives” want to make it even MORE unfair!