President Obama’s FY 2012 Budget, FY 2011 Continuing Resolution,? Gov Shutdown - page 2
by NRSKarenRN 2,583 Views | 11 Comments Admin
ANA:President Obama’s FY 2012 Budget, FY 2011 Continuing Resolution, Possible Government Shutdown…OH MY!... Read More
- 1Jun 16, '11 by dp1200This rhetoric of partisan class warfare and incessant harping on the Obama tax cuts (Bush isn't President anymore and it was Obama who last signed the law reauthorizing these tax rates) not only fails to address the actual problem or offer a real solution, it is downright disingenuous.
The TOTAL cost of the Obama tax cuts amounts to approx. $1.3 billion per year (source). Note this is the TOTAL reduction in revenue from ALL the cuts, not just the undeserved cuts given to the evil super wealthy - these were across-the-board tax cuts to ALL income brackets that everyone who earns a paycheck benefitted from. I'm trying trying to find a breakdown of the cost of these tax rate reductions by income bracket so we can directly address the cost of the cuts to the upper income brackets.
Nevertheless, even if we raise ALL the tax rates back to the higher pre-2001 levels, this would only restore $1.3 billion per year to federal revenue (less actually, because that $1.3 billion would no longer be in our pockets to be spent in the economy, thus reducing real revenues).
But, for the sake of argument, let's keep it simple and say the Fedgov would get back $1.3 billion per year from this tax increase. Well, the current Federal budget deficit is approx. $1.4 TRILLION.
$1.3 billion / $1,400 billion = 0.0009 = .09%
ALL of the Obama tax cuts amount to less than 1 tenth of 1 percent of the federal budget deficit! Right now, our budget deficit is $1.4 billion per year. You know what the deficit would be without the Obama tax cuts? $1.3987 billion/year. These tax cuts are completely insignificant in the face of our staggering budget deficit crisis! They are NOT the cause of the budget deficit - not even close (just 1/10 of 1%).
Let's look at it another way: As I've stated before, our government currently has to borrow $0.41 of every dollar it spends (source) - a fact you have repeatedly ignored. Raising ALL tax rates back to pre-2001 levels saves only $0.0004 of every dollar spent.
If you are currently borrowing $41,000 a year against an income of $59,000 to maintain a yearly budget of $100,000 (this is exactly proportional to what the fedgov is doing), does it really matter to your financial picture if you get a $40/year raise? You are still borrowing $40,960 per year. Are you in any better shape? Of course not - it's insignificant!
Are you beginning to understand the horrible magnitude of what our fedgov has done, and how pointless it is to harp on something so factually irrelevant as the literally insignificant Obama tax cuts?Last edit by dp1200 on Jun 16, '11 : Reason: added source link
- 0Jun 17, '11 by herring_RN GuideI'm not certain of the accuracy of the $1.3 billion per year amount but why say it is completely insignificant?
What are our priorities? Do we choose to bail out banks and not our hungry children? Give subsidies to oil companies and make sick seniors try to find a for profit insurance company?
Stop taxing capital gains and blame working teachers, nurses, and trash collectors for the deficit?
What do we do?
I know no matter how frugal most of us would borrow to pay for healthcare to save our children or parents after a catastophic accident or illness. And then work to increase our income to pay what we owe.