- 2005 - $2.4 trillion
- 2006 - $2.6 trillion
- 2007 - $2.78 trillion
- 2008 - $2.9 trillion
- 2009 - $3.1 trillion
- 2010 - $3.55 trillion (Obama's proposed budget)
In 2009 economists are estimating that our budget deficit will be $1.75 trillion, that's a staggering 13% of our total GDP. But its only going to get worse as spending is ballooning out of control. Consider the proposed $3.55 trillion dollar budget. Throw in local and state government spending on top of that and you are looking at over 40% of what we produce in this country will be consumed by the government. That's mind boggling!!! 40% of our GDP going to politicians is enough to make me want to cry. Is this what this country was founded upon? The idea that the government consumes everything?
The next obvious question then becomes, "how do we fund all this spending?" Good question. Obama's answer, tax the rich. Apparently the American people are just as stupid as he is since 51% think its a good idea. This country was founded on individual rights and yet no one seems to think that the right to prosper is allowed anymore. What the government is doing is nothing more than legalized theft. Let's look closely at Obama's plan. He says he's going to raise the top two income tax brackets from 33%->35% and 35%->38%. That 33% tax bracket starts at $200k, so officially, that is the defintion of rich according to Obama. (That may be rich if you live in Humboldt, IA, but it isn't rich if you live in NYC.) But not only are your taxes going up if you are in that bracket. You will now also lose the ability to deduct charitable contributions, mortgage interest, and child exemptions as well as you lose some deduction phase-outs. Factor all those in and now that top bracket jumps to 42%. Throw in state and local tax rates of 8-10% and now, if you are in the top tax bracket, more than half of everything you earn is going to be taken from you. So I say again, legalized theft. And you are going to tell me that won't effect the economy? Give me a break.
I can think of atleast 3 obvious ways this will sink the economy even more. First, people who are loaded (typically the people who own and run everything) will stop working. If they have enough to retire there is no point in working for 40 cents on the dollar. So you will see more businesses close their doors. Second, if charitable contributions can't be deducted, why would any of the "rich" continue to do so. You will see charitable organizations no longer being able to meet the needs they are supposed to provide. Agencies will cease to exist leaving behind a need in their wake which will allow the government to expand the welfare state even further. And lastly, and I don't know how many times I can say this, you cannot tax the rich! Since the rich produce nearly everything you buy and use, they are simply going to pass along their tax hike into the cost of their product or service. So its the poor folk who see the price of their goods go up that are getting taxed. And if the market won't bear the increased price, well, then we are back to option one above where the rich just quit working.
I think Obama should just come out and outlaw success. I mean, that is what all this legislation is essentially doing. If you are prosperous, successful, and productive then you need to be punished, and the government does that by taking what is not rightfully theirs. Another interesting statistic is that the top 2% of tax payers currently only pay $500 billion in taxes. Even if you double that you won't even come close to closing the budget deficit with the rate the government is expanding.
Its time for a revolt folks... while we can still afford pitchforks and shovels.
UPDATE - 3/4/09
I don't like to say I told you so, but well, I told you so. Here are just a few examples already of exactly what I explained above. People who are considered "rich" by Obama are already looking to cut their tax exposure. Not only that, but they are cutting charitable contributions. I might have a future at fortune-telling if I keep this up. I think this statement from the first ABCNews article sums it up best.
"Dr. Poczatek put it best when she said: “The motivation for a lot of people like me – dentists, entrepreneurs, lawyers – is that the more you work the more money you make, but if I’m going to be working just to give it back to the government — it’s de-motivating and demoralizing.”"
- Upper-Income Taxpayers Look for Ways to Sidestep Obama Tax-Hike Plan - ABCNews
- Why Make $300k When $250k Is So Much More - Heritage Foundation
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