Obama's New Taxes Are Hitting More Than Millionaires
Obama’s announced on Monday his newest plan to battle the deficit is hitting everyone, not just millionaires will be effected. $130 billion in new government revenues is expected to be raised through new or increased fees.
Frequent flyers, federal workers, retired military, wealthier Medicare beneficiaries and people who have taken out new mortgages are among the people who will contribute to the proposed $130 billion.
In the Obama administration budget documents, these imposed fees are being called “savings.”
CNBC.com shares an example of how this plan will put into use. Airline passengers would see federal security fees double from $5 to $10 for a nonstop round-trip and triple to $15 by 2017. This raises $25 billion over the coming decade.
Federal employees are expected to give $21 billion more to their pensions over the coming decade. And those who have retired from the military will pay a $200 fee when they turn 65 in order for the government to pay their “out-of-pocket” Medicare expenses. Additionally, these military retirees will also have to pay more for non-generic prescription drugs.
These “savings” are not taxes, but charges for anyone using government services or benefits.
Obama called for $1.5 trillion in new taxes on Monday. The plan to tax more is part of 10-year deficit reduction package that totals over $3 trillion.
The president’s new plan will end the tax cuts former president George W. Bush gave to couples making more than $250,000 a year.
According to information provided by CBS New York, “Under the proposal, families making $250,000 would pay and extra, $2,100 in tax. Those making $300,000 would see a $4,441 increase in their tax bill. Those making $500,000 would pay $7,388 more.”
If you are a millionaire, then on $1 million that you make the tax will be $51,389.
Currently, millionaires pay 15 percent of their income in taxes and those who are considered middle class pay anywhere from 25 to 38 percent of their income in taxes.
Obama’s response to these new tax proposals, “It’s only right that we ask everybody to pay their fair share.”
Republicans are not in agreement with Obama. They argue that tax increases should not have any part in getting the nation’s debt under control. The wealthier are the ones who can create more jobs for people, taxing them more than they already are will not provide much help for anyone.
Republican Congressman Peter King says, “It’s wrong to raise taxes in a downturn, because you’re raising taxes on the people who are going to create jobs, but especially for us in New York and Long Island where $200,000, $250,000 is not a lot of money. You’re going to find people who are basically a working family — a police officer and a teacher.”
After denouncing the fat-cats on Monday, Obama held a dinner in New York for...you guessed it: wealthy millionaires! Tickets for the dinner cost $35, 800 per person, $5,000 from each ticket went to Obama’s campaign. He was expecting to raise $2 million towards his reelection campaign from this dinner.
Obama, at least not while reporters were present, did not mention to his wealthy friends his new plan to tax this rich.
He alluded to controversy surrounding his new plan and said “You’re already hearing the moans and groans from the other side about how we are engaging in class warfare and we’re being too populist and this and that and the other — all the usual scripts.”+9
Add a Comment (Pro Members Only)
More like this...Presidents and Their Debt: From FDR To Obama
The debt ceiling debate continues as August 2 creeps closer. Obama's debt is of serious concern, but looking back at the other debt-ridden presidents may ease the pain a bit...
Obama Sets All-Time Record for Fastest to Acquire Debt
The amount of money the U.S. gets more into debt, per minute, will astonish you.
Obama's Solar Scandal
Even as half a billion of your hard-earned dollars were being donated to this company, your president knew it would fail...