Obama's Budget: Almost $1 Trillion in New Taxes Over Next 10 yrs, Starting 2011

Change you can believe in.

Obama's Budget: Almost $1 Trillion in New Taxes Over Next 10 yrs, Starting 2011

February 26, 2009 12:00 PM

President Obama's budget proposes $989 billion in new taxes over the course of the next 10 years, starting fiscal year 2011, most of which are tax increases on individuals.

1) On people making more than $250,000.

$338 billion - Bush tax cuts expire
$179 billlion - eliminate itemized deduction
$118 billion - capital gains tax hike

Total: $636 billion/10 years

2) Businesses:

$17 billion - Reinstate Superfund taxes
$24 billion - tax carried-interest as income
$5 billion - codify "economic substance doctrine"
$61 billion - repeal LIFO
$210 billion - international enforcement, reform deferral, other tax reform
$4 billion - information reporting for rental payments
$5.3 billion - excise tax on Gulf of Mexico oil and gas
$3.4 billion - repeal expensing of tangible drilling costs
$62 million - repeal deduction for tertiary injectants
$49 million - repeal passive loss exception for working interests in oil and natural gas properties
$13 billion - repeal manufacturing tax deduction for oil and natural gas companies
$1 billion - increase to 7 years geological and geophysical amortization period for independent producers
$882 million - eliminate advanced earned income tax credit

Total: $353 billion/10 years

SOURCE: Political Punch: Obama's Budget: Almost $1 Trillion in New Taxes Over Next 10 yrs, Starting 2011 (http://blogs.abcnews.com/politicalpunch/2009/02/obamas-budget-a.html)

Did I miss something or were his intentions not clear during the campaign? Is this not the change people voted for?


I like, I like very much! Very very nice!

isn't this exactly what he said he would do?

Politics at its best. First they give a trillion dollars to their friends through the stimulus package and then they take a trillion dollars from their enemies through a tax increase. Elections do have consequences.

Of course your summary doesn't even contemplate the cap and trade system he wants which will bankrupt entire sectors of the economy.

Apparently the folks who understand the finance of this country don't like it, the Dow is down from about 9000 on Jan. 6th to below 7300 now. What's changed? Obama has come forward with his proposals for U.S. fiscal policy. Because a majority of Americans bought into Obamamania doesn't mean it's good for the economy.

and yes saden, if the economy turns around due to Obama's policies, I will give credit, however it has never happened historically.

isn't this exactly what he said he would do?
Class warfare usually works when the class being catered to (low-middle income) outnumbers the class being punished (the "evil" rich). Unfortunately while this wins elections, it puts the country further behind the eight-ball. Government spending on social programs and liberal pet-projects never stimulates the economy it only hurts and either extends a recession/depression or increases the debt for future generations.

Most of the folks making over $ 250K are either small business owners, doctors/lawyers, or business professionals. The effect of increasing taxes on them will cause an increase in the cost of their goods/services which will effect everyone, especially the low-middle income folks. A dinner out that used to be $ 40 that increases to $ 44, a home reapir that increases from $ 1,000 to $1,100, etc. hurts a family making $ 80K a lot more than a family making $ 180K.

Also the middle income folks who are saving in their 401Ks and IRAs own stock in the energy companies and other "evil" corporations. Increase taxes on these corporations and profits/dividends shrink, hurting everyone who owns the stock.

EDIT: More good news Estimated Budget Totals for 2008-2010 Show Government Public Debt Rise 63 Percent - First 100 Days of Presidency - Politics FOXNews.com (http://www.foxnews.com/politics/first100days/2009/02/26/raw-data-budget-totals/)

Can someone tell me why any of this is good policy?

I'm not a fan of tax hikes in any form because of the economic toll it can take. But I have to credit him for at least waiting to initiate the hikes until 2011.

By then most economists forecast the recession will be over and we'll be on the rebound. If he put the tax increases in place immediately it would thrust us into a horrendous depression. He's willing to acknowledge the consequences of tax hikes and he's clearly taking it into consideration. Kudos for that.

Raise the capital gains tax? More good news for the stock market!

I don't want to hear any Obama supporters complain about their 401k accounts from here on out if this actually happens.

I thought the idea was to stimulate the economy?

Apparently the folks who understand the finance of this country don't like it, the Dow is down from about 9000 on Jan. 6th to below 7300 now. What's changed? Obama has come forward with his proposals for U.S. fiscal policy. Because a majority of Americans bought into Obamamania doesn't mean it's good for the economy.

and yes saden, if the economy turns around due to Obama's policies, I will give credit, however it has never happened historically.

Don't take that road, you'll end up on Sad and Pathetic Road (http://thinkprogress.org/2009/02/25/drudge-dow-obama/) which is totally not a cool place for an upstanding gentlemen such as yourself. Time will tell but it seems to me your side doesn't know how to play (http://yglesias.thinkprogress.org/wp-content/uploads/2009/02/usa_historical_debt_as_a_of_gdp_from_1929_w2_1.jpg ) at all at the moment. Until then, watch and learn.

Apparently the folks who understand the finance of this country don't like it, the Dow is down from about 9000 on Jan. 6th to below 7300 now. What's changed? Obama has come forward with his proposals for U.S. fiscal policy. Because a majority of Americans bought into Obamamania doesn't mean it's good for the economy.

and yes saden, if the economy turns around due to Obama's policies, I will give credit, however it has never happened historically.


Obama has a win win situation no matter what he does pretty much. Most say the economy will start to come back in the next year so any increase in jobs or anything Obama wins. He took office at almost rock bottom (well I guess it could get worse) so anything he does if the economy starts to come back he will point to them even if his policies did not help one bit. Thats how the game works and unless he really screws things up he sould be guaranteed 8 years in office. I know its early to say that but I believe in our market and while it has taken a hit it will survive. I just don't see how he can loose. So then we will see even more social programs in his second term and I think thats when we have major issues. There are just to many people who have their hands stuck out and not enough people paying into the system.