Free Markets, Free People


Obama’s announced plan? 60% may be tax increases

Goldman Sachs attempted an apples to apples comparison of all the deficit and debt reduction proposals out there and found some unsurprising things about the Obama proposal:

proposals

 

Note too that the assessment is done over 10 years, not the 12 that Obama tried to use.

James Pethokoukis points out:

So of the 3.4 percentage points of savings, more than half — 1.9 points — comes from taxes. That’s 56 percent, not the one-third or one-quarter that Obama was talking about. And I am assuming that Goldman is using the White House’s rosier economic forecasts when evaluating Obama’s plan. (Ryan uses the gloomier ones from the Congressional Budget Office.) I think the Republicans will be pointing this out.

He further updates it with this:

UPDATE: Here is one more key bit from the Goldman Report:

Measured against the CBO alternative scenario, the President’s proposal relies more heavily on increased revenue than the other proposals. It assumes that the $1 trillion in proposed revenue increase (over 12 years) does not include the additional $700bn (over ten years) from allowing the upper-income tax provisions to expire; the President’s spending cut proposal is on the same general scale as the external commissions, though somewhat smaller, at around 1.5% of ten-year GDP.

To be clear, Obama is abolishing the Bush tax cuts for $250,000 and  an additional $1 trillion tax hike.

You’re not going to get that $1 trillion only from the richest (who are now in the middle of figuring out how to avoid higher taxation and will, should this be enacted, be in shape to legally avoid more taxes).

But, it should come as no surprise whatsoever that a Democratic president is again proposing to raise taxes to pay for his and his Democratic Congress’ profligacy.  You know that “shared responsibility” bit.  They’re responsible for spending it and you, dear taxpayer are responsible for coughing up the money when they spend way too much.

Again, it is possible at some point in the future that we may actually have to discuss an increase in taxes.  But we’re nowhere near that point right now.  The taxpayers should demand that not a single penny in increased taxes be levied until they as a whole are satisfied that every single spending cut possible has been made, waste, fraud and abuse have been ruthlessly rooted out, government has been downsized and streamlined and wasteful programs, bureaucracies and departments have been trimmed, shut down or eliminated.

We haven’t even begun that process yet.  So it is much to early in this process to be talking about tax increases.  Show us the progress – real progress, visible progress – and the reduced budgets with a real plan to balance the budget and pay down the debt and then and only then will we listen to any talk about tax increases (and may still reject them out of hand).

~McQ

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3 Responses to Obama’s announced plan? 60% may be tax increases

  • Totally NEW…
    Ultra DIFFERENT…
    Wonderfully IMPROVED…
    Tax.  Spend.  Cut defense.
    Hmmm….

  • Its a shame that the media is so biased and Liberals so faithful to Obama. He came out wednesday with no details on anything other than the typical class warfare jibberish of raising taxes on the “rich”. He also won’t touch the Big 3 entilements because they’re too big and he won’t cut programs like Planned Parenthood and NPR because they’re amount is too small to matter,so where are you going to cut then? History has shown that tax increases on the wealthy doesn’t increase revenue.But yet if you watch the news or listen to liberals talk its like he had charts,graphs and tables showing how his plan works! The only change he’s brought is instead of the media hating the president,they worship him now.

  • I think that people would be more comfortable with tax increases if they had confidence that the spending cuts would also take place.  Unfortunately for Captain Bullsh*t and the rest of the morons in DC, we’ve learned from too much recent history not to be so gullible.

    Over the past few years, there’s been a big question about “what will the ‘bluedogs’ do?” Now the question is, “What will the RINO’s do?”  Will the career GOP congressmen, who love to spend every bit as much as their dem colleagues, get it through their heads that the country (and, coincidentally, their own careers) depend on finding a way to cut the deficit that doesn’t rely on raising taxes?  Or will they “compromise” and f*ck the (increasingly few) people who actually produce goods and services, further knee-capping our economy?