Thrill had a post up discussing the upcoming tax battle as the Bush tax cuts are scheduled to expire at the end of this year. The donkeys are clamoring for that to happen, because they want stupid people to believe that tax hikes on the rich will somehow cover the $1.3 trillion – estimated since we conveniently have had no budget in the last 3 years to verify it is only this much that they are over spending by – of annual deficit spending we have had since the democrats took over (BLAME BOOSH! – trademark). But the fact is that this tax hike is not going to change anything in any meaningful way.
Let us start with the real numbers, and we can take a look at the Tax Foundation’s site where they have this special report breaking down the numbers. First up, the table showing the Bush tax cut provisions and what is going to happen on January 1st (table 2 in the report):
Let’s break down the tax changes, focusing on income tax brackets. The first thing to notice is that the lowest bracket, 10% goes away. All those that were in that bracket now are moved into the 15% bracket. Note that this apparently still leaves a sizable chunk of people that are not paying income taxes because of some earnings threshold, still not paying any income taxes. All other brackets jump some 3 ½ percent. According to this Tax Foundation’s special report’s table 1, line one, this change across the board will result in a measly $156 billion dollars of extra annual revenue.
So an across the board hike of 3 ½ percent for ALL BRACKETS that are currently paying income tax will yield us just $156 billion more. Focusing only on the hike the left wants, the top earner’s bracket, the question begs to be asked: what’s the revenue then? If we want to be generous, apply historical precedent where these rich people already pay 50%+ of the taxes, we can guestimate their share amounts to some $80 billion. Yeah, I am fudging it upwards, but in the grand scheme of things – they are spending over $1.3 trillion more than they are collecting each year – that $2 billion is a rounding error, and then one in the left’s favor. Shit, let’s just say it is an even cool $100 billion they are going to rake in, because these stupid rich people are not going to react at all to the government wanting to fleece them even more. So where are the other $1.2 trillion they need to just break even going to come from? There is no way this gap gets covered by just the rich. Even if they jack their bracket up to over 50%. And that’s the point.
This Obamanomics strategy here is just that: a fake. The intent is to allow the left to pretend they created new revenue by socking it to the group people envy the most. We have had more than a decade of this conditioning. The Boosh tax cuts caused a deficit! (Not the fact government spent more than it took in). Those evil Boosh wars caused the deficit (again: not the fact government spent more than it took in). The rich are not paying their fair share! Boosh’s tax cuts and wars, not the stupid and doomed attempt to social engineer through mortgage lending, caused that horrible economic down turn that still plagues poor genius Obama. Even after 4 years of Obamanomics, and that’s because these evil republicans are protecting their rich fat cat buddies! The fact that 4 out of every 5 of these rich people voted for Obama be damned.
Anyway, back to the plan. So the left socks it to the group everyone loves to hate, and then what? Well, then jack up spending, yet again. After all, they have provided new revenue, and in the mind of the math challenged tools that love this nonsense, they think things are all fine and more spending is no big deal. After all, their buddies in government can just confiscate more from those rich people to cover any new spending, right? Heh, sure. Eventually taxes will have to go up on everybody to cover the gap, or that gap is only going to grow, sine the end goal is to provide an excuse to spend more. And that’s the big goal: an excuse to spend more.
Now, if all that we ere facing was an economic growth crushing tax hike and increased government spending, things would only look ugly. But there is another monster on the horizon that promises to make this bleak scenario downright frightening on account that it is going to not just siphon even more money out of the economy and allow government to mismanage it, but drastically affect employers, and thus employment. And that is on top of the fact that while they told us this thing would end up collecting more than it would cost to sell it, we now know that is not even remotely close to the truth. Yeah, we are talking about Obamacare and the pain that will cause us.
The table below breaks down Obamacare taxes, and man are there a lot of them.
This monster is just going to have staggering implications. But that’s a post for another day. Right now, let’s focus on why the class warriors really want that tax hike, and that it will not be just on the rich, by necessity.