A glimpse of tonight’s speech by Obama:
President Barack Obama will call tomorrow for a combination of reductions in entitlement spending and tax increases on higher-income Americans to address long-term fiscal debt while drawing a sharp contrast with the Republican alternative proposed by Representative Paul Ryan, according to a person familiar with the plan.
This speech is just more evidence of the Marxist nature of our President. He will bandy about words such as “shared sacrifice” and “fairness” but in Obama’s world shared sacrifice means you turn over more and more of YOUR labor and wealth to the government so it can decide who is more worthy of YOUR labor and wealth…other then you, of course. If someone is miserable it’s only “fair” that everyone is miserable you see.
Robert Samuelson wrote a wonderful, and scary, article on the state of this Republic and ends it with:
If deficits were temporary — they were certainly justified to temper the recession — or small, they would be less worrisome. That was true for many years. No more. An aging population and uncontrolled health costs now create an ongoing and massive mismatch between spending and revenue, even at “full employment.” The great threat is a future debt crisis, with investors balking at buying all the Treasury bonds the government requires to operate. So President Obama and Congress face a dilemma: The more they seek to defuse the economic problem of too much debt, the greater the political risks they assume by cutting spending or raising taxes.
The package to prevent a shutdown barely touches the prevailing stalemate. House Budget Committee Chairman Paul Ryan’s proposed 2012 budget forthrightly addresses health spending but doesn’t make any cuts in Social Security. Ryan’s plan would ultimately gut defense and some valuable domestic programs; it wouldn’t reach balance until about 2040. Compared with Democrats, however, Ryan is a model of intellectual rigor and political courage. Obama would run huge deficits from now to eternity; the Congressional Budget Office has projected about $12 trillion of added debt from 2010 to 2021 under his policies. Obama urges an “adult” conversation and acts like a child, denying the unappealing choices.
Government is suicidal because it breeds expectations that cannot be met. All the partisan skirmishing over who gets credit for averting a shutdown misses the larger issue: whether we can restore government as an instrument of progress or whether it remains — as it is now — a threat.
“Instrument of progress”
This government will never be an instrument of progress if we continue to raise taxes on those who fuel this government with jobs and innovation.
The top 50% of wage earners in this country already pay more than 97% of ALL taxes in this country for god’s sake.
According to the IRS, the “income split point” for somebody to be included in the top 1% of all taxpayers (by income) was $380,354 in 2008 (the last year where data is available).
So, if you reported Positive Adjusted Gross Income (AGI) of $380,354 or over, then you were in the top 1% of all taxpayers in the United States in 2008.
According to the IRS, this group of taxpayers (1,399,606 total) paid 38.02% of all federal individual income tax collected in 2008.
The top 5% of all taxpayers (income split on this group was at $159,619 in 2008) paid 58.72% of all federal individual income taxes in 2008.
Let’s continue to break this down:
Top 10% (Income Split Point $113,799) Paid 69.94% of Federal Individual Income Taxes
Top 25% (Income Split Point $67,280) Paid 86.34% of Federal Individual Income Taxes
Top 50% (Income Split Point $33,048) Paid 97.30% of Federal Individual Income Taxes
Bottom 50% (Anyone Making Less Than $33,048) Paid 2.7% of Federal Individual Income Taxes
So let’s tax them some more?
What would happen if we took ALL the money from those evil rich?
This year, Congress will spend $3.7 trillion dollars. That turns out to be about $10 billion per day. Can we prey upon the rich to cough up the money? According to IRS statistics, roughly 2 percent of U.S. households have an income of $250,000 and above. By the way, $250,000 per year hardly qualifies one as being rich. It’s not even yacht and Learjet money. All told, households earning $250,000 and above account for 25 percent, or $1.97 trillion, of the nearly $8 trillion of total household income. If Congress imposed a 100 percent tax, taking all earnings above $250,000 per year, it would yield the princely sum of $1.4 trillion. That would keep the government running for 141 days, but there’s a problem because there are 224 more days left in the year.
How about corporate profits to fill the gap? Fortune 500 companies earn nearly $400 billion in profits. Since leftists think profits are little less than theft and greed, Congress might confiscate these ill-gotten gains so that they can be returned to their rightful owners. Taking corporate profits would keep the government running for another 40 days, but that along with confiscating all income above $250,000 would only get us to the end of June. Congress must search elsewhere.
According to Forbes 400, America has 400 billionaires with a combined net worth of $1.3 trillion. Congress could confiscate their stocks and bonds, and force them to sell their businesses, yachts, airplanes, mansions and jewelry. The problem is that after fleecing the rich of their income and net worth, and the Fortune 500 corporations of their profits, it would only get us to mid-August. The fact of the matter is there are not enough rich people to come anywhere close to satisfying Congress’ voracious spending appetite. They’re going to have to go after the non-rich.
But this isn’t about solving anything. This isn’t about reducing our debt. This is about Obama and getting re-elected. This speech is the start of Obama’s campaign.
How much can they get us to resent the rich?
Problem is they can’t stop at the rich…since it won’t solve the problem. They will have to come after your paycheck too.