On September 8th, President Obama proposed a $447 billion
job-creation initiative and on Monday, he proposed a package
of tax increases to pay for it.
The president is hoping that job-creation policies take
effect as soon as Congress passes the bill, paired with
tax increases, mostly to the top 2% of households that
make more than $250,000 a year, starting in 2013.
The package offers a weak economy stimulus in the short
run and potential deficit reduction in the longer run. It
has some sound particulars but applying a arbitary tax
increase to households making more than $250,000 is in
itself short-sighted. The number that the tax should
apply to is the adjusted gross number which is a much
better indicator of what the real income in family is.
The IRS Code itself is sorely in need of overhaul. I
of one am a proponet of a flat tax where everyone pays
one rate based on income. Deductions are only allowable
in certain cases.
Omaba thinks he is targeting the tax increases on high
end earners buy he is just creating more problems for
average hard-working people. His tax hike should target
the super rich who have stated that they know they should
pay so much more.
Under our current tax law, the largest subsidies go to
the people who need them the least - the super rich.
Obama's proposed tax increases are expected to raise $41
billion by ending tax breaks for oil and gas companies
(what benefit did America derive from those breaks???),
$18 billion by not letting private equity partners pay
tax on most earnings atabout the lowest rate in the code
(WHY???) and $3 billion by curbing breaks for corporate
jets (yes - breaks for corporate jets).
Loopholes like these and many, many others left to go
unreviewed for SO MANY YEARS is one reason why America
is so light on the REVENUE side of the budget deficit.
