The jobs numbers will continue to remain dismal,
Obama Budget Would Impose Host of Tax Increases
Obama budget plan would imposes host of tax increases on businesses, wealthy families
The budget proposal released Monday would extend Obama’s signature Making Work Pay tax credit — $400 for individuals, $800 for a couple filing jointly — through 2011. But it would also impose nearly $1 trillion in higher taxes on couples making more than $250,000 and individuals making more than $200,000 by not renewing tax cuts enacted under former President George W. Bush. Obama would extend Bush-era tax cuts for families and individuals making less.
Obama revived numerous proposals for business tax increases that didn’t fare well in Congress last year, including a scaled-down plan to increase taxes on U.S. companies with major overseas operations, and plans to increase taxes on oil and gas companies.
In all, Obama would increase taxes on some businesses and wealthy individuals by a total of about $1.4 trillion over the next decade, while cutting taxes for middle-class workers and other businesses by about $330 billion. The bottom line: Tax receipts would increase by about $1.1 trillion over the next decade.
Since I am certain we’ll be having inflation, the “middle-class” may find out that an income of $200,000 does not make you rich – as is already the case in Manhattan. But I digress.
The budget accounts for a $33 billion tax cut that Obama wants Congress to include in a new jobs bill. It would give companies a $5,000 tax credit for each new worker they hire in 2010. Businesses that increase wages or hours for their current workers in 2010 would be reimbursed for the extra Social Security payroll taxes they would pay.
If Obama was interested in businesses hiring, he would cut their taxes now, instead of giving tax credits or reimbursements whose effect is to inject more money into the government, with the government as middleman.
More and more taxes, punishing Obama’s straw men: the “rich”, the “bankers”, the oil companies, big business, and financial institutions.
Squeeze the “rich”:
—Raise the top two income tax rates for individuals, from 33 percent and 35 percent, to 36 percent and 39.6 percent, respectively. Unless Congress intervenes, those rates will rise next Jan. 1 when Bush’s tax cuts expire. That government would reap $365 billion over the next decade.
Screw the non-profits and charities, and the housing market:
—Limit the itemized tax deductions high earners can claim for charitable donations, mortgage interest and state and local taxes, raising about $210 billion for the next decade.
—Increase the top capital gains tax rate from 15 percent to 20 percent for families making more than $250,000 a year and individuals making more than $200,000. The proposal would raise about $105 billion.
Phony tax credits, instead of effective tax cuts that would encourage businesses:
—Make the research and experimentation tax credit permanent, saving businesses about $83 billion over the next decade.
—Impose a “financial crisis responsibility fee” on large financial institutions, raising $90 billion over the next decade.
—Restrict the ability of international companies to defer taxes on profits made overseas, raising about $26 billion over the next decade.
—Impose a total of about $39 billion in tax increases on oil, gas and coal companies over the next decade.
—Change the way profits made by investment fund managers are taxed, raising an additional $24 billion over the next decade.
In short, a menu of big-government bureaucratese, seasoned with class struggle, which won’t help businesses.
There will be no podcast this morning.