Writing on his blog at ABCNews.com, Jake Tapper talks about the President’s proposed new taxes. First, the obligatory Obama attack on the (job-creating) people who make $250K+. Presumably this group will include a ton of Chapter S small businesses. Perhaps it will negatively impact the one that employs you, forcing hard choices on your boss.
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
So the people who are most likely to create a small-business job are the ones getting hit. Nice Econ-101 there, sport. Then on to the “business taxes” part of it, though every tax is a tax on the individual.
$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
Never forget that every single tax on a company is simply passed along to the consumers. Taxes on companies are simply ways for government to hide taxes from you since they just get built into the price of the products. Looking at that list of “business” taxes above, it’s clear that many of Mr Obama’s new taxes are simply anti-local-energy and will result in considerably higher gas prices for every American, not just those 250K-ers that Obama loves to demagogue. Remember $4/gallon? We may be headed there again. Even for those of you who get tax refunds without paying taxes (those most likely of Obama supporters).
Is this the hope and change that you bamboozled people voted for?