Wednesday, August 20, 2014

Subscribe to Clarion AdvisoryRSS FeedSubscribe to Clarion AdvisoryComments

Latest News

Obama’s $3.8T Budget and the Bonfire of the Billionaires

February 14, 2012 by
Filed under: Uncategorized 

canstock0179531 Obamas $3.8T Budget and the Bonfire of the Billionaires

By Bob Jentges (Editor Emeritus, Clarion Advisory) 2-14-12

In May 2011, the procedural vote to move forward on President Obama’s 2012 budget—which included a tax hike on the”rich”—was 0 to 97 in the Democrat controlled U.S. Senate.  On Monday, President Obama released his 2013 $3.8 trillion budget, which to almost no one’s surprise included a $1.4 trillion tax hike on the so call, rich.  I predict Obama’s budget proposal will almost certainly be DOA in Congress.   

The silliness of a raise taxes on the “rich” proposal as a solution to reducing the deficit/debt is discussed in syndicated columnist Dan McGroatry’s January 31, 2012 article titled Bonfire of the billionaires.  Some things I was able to glean from McGroatry’s column include: 

  • By taxing the “rich” at 100% of their net worth starting with # 1 Bill Gates and his $59 billion, down to # 397 Dan Snyder and his $1.05 billion, we would run out of money sometime in late May. 
  • If we next moved down to taxing 100% those 236,000 that earn $1 million annually and add that, it would extend running out of money until sometime in late July.

McGroatry did carry through to how far taxing 100% of those with a net worth of $1 million would take us, but my uneducated guess is we would run out of money before Year end. 

This begs the question—how long can we go before raising taxes ceases to contribute anything significant toward solving the problem? 

If this is not convincing evidence to even the most envious, redistribution of wealth promoting, liberal/progressives among us, that solving the problem rests with reducing irresponsible spending, rather than increasing taxes on anyone, I am about ready to give up—but I will not, call me American!

Comments

One Comment on Obama’s $3.8T Budget and the Bonfire of the Billionaires

  1. Tim on Tue, 14th Feb 2012 1:30 pm
  2. Taxing the rich sounds good, until they find tax shelters. The coming inflation will make everyone move up in tax brackets. No one seems to think about that. We have been living on borrowed money for a long time, someday we gonna have to pay the price, put on the napkin and eat our peas. Higher taxes mean more businesses moving out, less jobs, more on the government dole. Its a downward spiral. Those who don’t think others pay enough taxes will soon be paying more, less disposable income, less to spend at other business. Making the rich pay more wont’ mean I pay less.

Tell me what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!