Budget

Sampling the Obama Budget's Revenue Raisers

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Whitehouse.gov

President Obama's budget proposes raising tax revenue above its historical average over the next decade in order to pay for federal spending. So where does all the new revenue come from? Tax hikes and tax-code changes on high earners, the energy industry, tobacco, and more.

The Cato Institute's Nicole Kaeding samples a few of the revenue raisers in the new White House budget plan: 

  • Buffet Tax" ($53 billion): President Obama resurrected this tax that would require high-income individuals to pay at least 30% of their income in taxes.
  • Limiting tax teduction ($598 billion): President Obama would also limit the value of itemized deductions for high-income earners.
  • Changes to the "Death Tax" ($131 billion): The president suggests going back to the estate tax rules of 2009 which would increase the marginal tax rate on estates and lower the exemption, subjecting more assets to taxation.
  • Changes to oil and gas taxation ($44 billion): Frequently criticized by the president, these tax provisions are not subsidies to oil and gas companies, but instead ameliorate the tax code's improper treatment of capital expenditures.
  • Changes to international taxation ($276 billion): Instead of moving the United States to a territorial tax system like the rest of the industrialized world, the president proposes further raising taxes on corporation with overseas earnings.
  • Cap on 401(k)/IRA Contributions ($28 billion): This provision would prohibit individuals from contributing to retirement accounts if the balance is greater than $3 million.
  • Increase in tobacco taxes ($78 billion): To pay for his universal pre-k proposal, President Obama would increase the tobacco tax from $1.10/pack to $1.95/pack.

The folks at Americans for Tax Reform have more detail on the energy tax changes here

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  1. Is the point of analyzing the fake budget (because, of course, it’s going nowhere, as everyone knows) to highlight it for the political fraud that it is? Obviously, Obama is looking to score electoral points for his party in some mysterious way by not actually doing anything.

    1. It’s to help when it comes time to give speeches about how the 1% use CITIZENS UNITED to keep from having to PAY their FAIR SHARE.

      1. Really, do lefties totally buy this, or do they secretly know it’s bullshit but join in the Big Lie to beat the Republicans?

        1. It has nothing to do with buying it. They’ve been to told to regurgitate it, and they do. Remember, “doublethink” is a real thing; they can actually believe two contradictory things at once, and do so all the time. It helps that they’re bonecrushingly stupid.

          1. I just can’t comprehend the mindset that says, “Political masters have spoken. Must obey.” Especially when even the slightest look at reality shows that these people are destroying our wealth, security, and God knows what else.

            1. You’re not a desperately insecure moron who wants nothing more than to belong, and finds that a TEAM will accept you if you just follow the orders. See the difference?

              1. Well I never really wanted to belong to anything, but otherwise you’ve got me pegged.

              2. No, we’re not TEAM statists, but we are willing to learn.

            2. even the slightest look at reality shows

              Good idea. We’ll call it America’s Next Top President and have events where the contestants have to drone-murder citizens, evade special prosecutors, etc.

  2. Changes to the “Death Tax” ($131 billion): The president suggests going back to the estate tax rules of 2009 which would increase the marginal tax rate on estates and lower the exemption, subjecting more assets to taxation.

    I see this happening. Old people still get their goodies, but once their dead and gone the government can raid what’s left.

    1. Why do they need tax revenue at all, since they’re spending many billions of money they don’t have?

      1. I think they understand the theory that it can’t go on forever (maybe?).

        Taxing dead people is one of the easier ways to collect revenue.

        1. Taxing dead people heirs is one of the easier ways to collect revenue.

          FIFY

    2. Shouldn’t this one be called the “buffet tax”?

      1. Not when he sells life insurance.

      2. I’m sure he’s furiously fapping over this as we speak.

  3. Total = roughly $1.07 billion over ten years.

    Or = one Iraq War (depending on your bias).

    1. Are you actually getting stupider?

      1. Hey, stop picking on Tulpa! He’s had a rough week!

        1. Tulpa isn’t talented enough to pull of Shreek’s shtick.

          1. I wouldn’t call that talented. It’s not like it’s hard to get people around here to respond to a sockpuppet.

            1. Sorry, what I meant is there is Shreek stupid and Tulpa stupid. Both unique.

              1. Look, man, don’t sell Tulpa’s stupid short. He’s capable of being all measure of incredibly stupid, including shriek stupid.

            2. It’s not like it’s hard to get people around here to respond to a sockpuppet.

              Yeah, they talk to you, MARY.

              1. They’re on to me!

              2. ooooooooooooooooo…….

                Fight fight fight fight fight……

      2. It’s not sentient. It is merely trying to elicit a response.

        The kindest, most humane thing you can do to it is to ignore it.

        1. You mean like you totally fail to when you post this stupid crap every time it posts?

          You do realize you are not ignoring it when you do that right?

          But more importantly, who fucking cares what you think about the subject that you need to share it ALL THE FUCKING TIME.

          You think it’s a sock. We get it. We got it MONTHS ago after the first dozen times you posted it.

          1. And by the way, it almost certainly is a sock.

            I just can’t stand being fucking nagged like that. “It’s a sock nag nag nag”

            god shut up about it already

      3. BOOOOOOOOSSSSSSSSHHHHHH!!!!111!!!!11! has been all he’s got left for a while now.

    2. that’s one thing PB never stops doing, equating apples to oranges.

    3. Palin’s Buttplug|3.5.14 @ 1:10PM|#
      “Total = roughly $1.07 billion over ten years.”

      EIGHT fucking percent, dipshit!
      8 8 8 8 8 8 8
      Not ten percent, like you can find one in ten people. Nope. EIGHT PERCENT!
      Go fuck you daddy.

      1. EIGHT fucking percent, dipshit!

        Did I miss some ecpic shriek stupidity in another thread? What’s this new “8%” meme?

        1. PB linked to some story about how great the ACA is, failing to notice that the same poll indicated only 8% of people actually wanted to keep the law in its current form.

      2. TIL the Iraq War cost a billion dollars.

  4. Changes to international taxation ($276 billion): Instead of moving the United States to a territorial tax system like the rest of the industrialized world, the president proposes further raising taxes on corporation with overseas earnings.

    It is impossible to fully articulate how injurious this would be to the economy.

    1. Let’s guess: businesses with any overseas presence flee like the US has been consumed with a zombie outbreak?

      1. It’s fucking amazing.

        The morons in the U.S. government are recreating Turkish style crony capitalism here in the U.S.!

        Just watch! The next step is to have rules about how much foreign ownership is allowed to operate in the U.S. with even more stringent exit controls to keep capital from fleeing the country.

        1. Oh, I’m watching, and dreading. They really are this stupid. But we already knew that. If Obamacare didn’t signal to anyone with a brain how stupid these people are, there’s no hope for them.

          1. I am so happy I work for a multi-national that appears to be a walking piggie bank to O!.

      2. Just like all of Obama’s cool musician friends who make Ireland their primary residence.

    2. The overall top rate would fall to 28% from 35% though. It would remove the perverse incentive to move overseas we have now.

      1. The incentive is to escape usurious minimum wage laws. The companies that have a large overseas presence are what we have left for manufacturing (barring the defense industry), not service. What this will do is seal the deal and have them move corporate over there as well.

        1. QE and regulatory compliance costs encourage outsourcing as well. And Obama is all-in on both of those.

        2. The incentive is to escape usurious minimum wage laws.

          What’s wrong with loving your wife with a minimum wage?

      2. Palin’s Buttplug|3.5.14 @ 1:19PM|#
        ‘argle bargle’

        Go fuck your daddy, shitpile.

  5. Where did this sudden infatuation they all have with “Universal Pre-K” come from?

    1. The younger age that the indoctrination begins, the better it takes.

    2. They’ve expanded the existing bureaucracy to absurd levels.

      They need new bureaucracies to colonize.

      1. If they don’t keep expanding, they stagnate. They need to expand as much as possible under a like-minded president. And oh man have they been.

    3. Because we must waste money on something educational research has consistently proven to be of little effect.

    4. Where did this sudden infatuation they all have with “Universal Pre-K” come from?

      Nothing sudden about it. Many leftists have been wanting to take other people’s children from them starting roughly at birth and hire loyal Democrats to indoctrinate them to worship the government.

      They see letting kids escape that for the first 5 years of their life as a failure of policy.

      1. Yeah I figured as much, but lately it’s been a trifecta with my mayor, my governor, and now my president yammering about it. It’s like the left wing of the Democratic party is in lockstep more than usual lately.

    5. 1) Sounds nice to bleeding heart voters.
      2) Payoff to single mothers.
      3) Payoff to SEIU and teacher’s unions.

  6. Is there nothing they can’t keep their grimy little hands off?

    1. Do you like buttsex? Or abortion?

      ‘Cause you’re allotted those two.

      1. Umm, can we choose whether to give or receive? In either case?

        1. No, that is decided by the bureaucracy.

  7. Pretty sure the next “loophole’ that’ll get closed is the one that lets you keep some of what you’ve earned.
    Combine that with an “anti-going-out-of-business” law and Tony and shreek will die of joy!

  8. This provision would prohibit individuals from contributing to retirement accounts if the balance is greater than $3 million.

    So if in 1990 I had invested all of my IRA in Cisco stock, I would be forbidden from adding anymore today?

    Thats fucking stupid.

    Why $3 million?

    1. “at some point you have enough money”

      1. Things the government has never said.

        Is the pyramid still on tv? If not, it should be brought back.

        1. http://www.youtube.com/watch?v=X0-YJ1zCJAU?

          O! said it – though I mistook … ‘made’ instead of ‘have’.

    2. Because I was curious:

      2250 shares bought at the IPO in 1990 would have been worth about $3 million at its peak in 2000.

      Of course, that assumes good timing. But it would still be worth $750k today.

      1. How much would it have cost to buy those shares?

        1. It looks like it was about 8 cents a share at the IPO, so like $180.

    3. because you don’t need any more!

    4. Because no one needs a retirement account over 3 million dollars. Except government employees, if you calculate the equivalent cash value of their pension plans.

    5. There are ways to get around this. First thing that came to mind are variable annuities. There is no limit to how much you can contribute to variable annuities, which are really just tax-deferred plans like IRAs (even have similar withdrawal restrictions/penalties).

      The next step will be for the feds to confiscate all retirement accounts and dole out to us in retirement what they think we need.

  9. “Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes”

    Any?

    1. About 5 minutes later he raised the cigarette tax.

      1. Even sooner than they he stopped doing public campaign financing.

    2. About 5 minutes later he raised the cigarette tax.

  10. IIRC, current federal revenue is about $3.3 trillion. That works out to just over $9 billion per day, which by my rough calculation is enough Franklins to fill a 32 ft shipping container. Every. Single. Day.

    Lack of revenue ain’t the problem.

    1. It is when you’re spending 10 billion dollars a day.

  11. Apparently Obama put a big tax on alt-text too.

  12. I was not angry since I came to Reason
    Until this instant. Take a trumpet, Auric;
    Ride thou unto the O! Administration on yon hill:
    If they will fight with us, bid them come down,
    Or void the field; they do offend our sight:
    If they’ll do neither, we will come to them,
    And make them skirr away, as swift as stones
    Enforced from the old Assyrian slings:
    Besides, we’ll cut the alt-text of those we have,
    And not a picture of them that we shall take
    Shall taste our mercy. Go and tell them so.

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