New Obama Taxes
Bruce McQuain has a roundup. Here is the list from the American via Q&O:
1. The top income rate would be raised to 39.6 percent vs. 35 percent today.
2. Under the “Buffett rule,” no household making over $1 million annually would pay less than 30 percent of their income in taxes.
3. Between now the end of a second Obama term, Obama proposes $707 billion in “net deficit reduction proposals.” Of that amount, only 16 percent is spending cuts.
4. The majority of small business profits would be taxed at 39.6 percent vs. 35 percent today.
5. The capital gains rate would rise to 25.0 percent (including the Obamacare surtax and deduction phase out) from 15 percent today.
6. The double-tax on corporate profits (including dividends) would increase to 64 percent based on the statutory corporate tax rate (58 percent using the effective tax rate), easily the highest among advanced economies.
7. The double tax on corporate profits (including capital gains) would increase to 51 percent (44 percent using the effective tax rate), also among the highest among advanced economies.
I think they may be under-estimating the double taxation of corporate income as the Buffett rule would increase the capital gains and dividends tax to 30% for wealthy individuals who rely mostly on these as a source of income.
Given that his own party would not pass most of this stuff last year, it is impossible to believe they will pass it in an election year.
Roy Lofquist:
Wouldn't the "Buffet rule" crater the municipal bond market?
February 14, 2012, 2:45 pmIGotBupkis, Three Time Winner of the Silver Sow Award:
>>> Under the “Buffett rule,” no household making over $1 million annually would pay less than 30 percent of their income in taxes.
Since most of them don't have INCOME, but CAPITAL GAINS, a fact lost on OWS Intellectuals, this means a lot less than it sounds like.
Moreover, since most ultra-rich don't directly control their assets, but instead shift them into tax-free foundations (notice: TAX. FREE. I repeat: TAX.... FREE....) which they maintain control over, this is basically going to go after the working-on-it rich people, if at all -- not the actual Rich Bastards that OWS Intellectuals are drooling to get their hands on.
February 14, 2012, 6:08 pmRoy Lofquist:
IGotBupkis,
The munis are bought for two reasons - safety and tax free interest income. I don't think that the coupon payments are treated as capital gains. I've never been in a position to buy them so I don't know the details.
February 14, 2012, 7:16 pmNormD:
Roy Lofquist,
I think you are missing the point. If you are rich and buy munis they would not be tax-free as interest would be taxed under the Buffet Rule.
Imagine the mess if the changes apply to current munis.
Like so many liberal ideas, no one seems to think through the consequences.
February 15, 2012, 7:34 amSteve:
He refused to build the Keystone pipeline which would reduce the federal budget deficit without these long-term tax increases. The Canadian energy sector has recently been on the rise so the revenue could be increased in the following decades. But now the Chinese are in the leading role and Obama is left with little alternative but to discriminate the wealthy and certain corporations that contribute to the normal functioning of our economy.
February 19, 2012, 2:49 am