Monday, November 5, 2012

Obama's Lie: Returning The Rich To The Tax Rates Under Clinton

Over and over, again, Obama calls for the "rich" to pay their fair share and simply pay the tax rates that existed under Bill Clinton.  But, that claim is so false, in so many ways, that it is just laughable.

First, there's this outright lie. When Clinton left office in 2001, the top tax rate was 39.6%.  That's the same rate that Obama wants to return to.  However, that rate was only being applied to those taxpayers making $297,350 and above; adjusted upwards from $288,350 in the previous year (see tax table link below).  You see, under Clinton the threshold for paying that top rate was being adjusted, annually, to account for inflation.  That's why, in 2002, the number was upped again to $307,050; and, that is also why, by 2011, the income threshold had been adjusted to $379,150.  But, what Obama wants to do is to take that threshold back to $250,000 for marrieds and even lower for singles making $200,000 or more.

The other distortion -- if not an outright lie -- has to do with tax increases associated with ObamaCare.  Under that law, those making in excess of $200,000 will be hit with a 0.9% with a payroll tax increase. Automatically, this means that the former-Clinton tax rate of 39.6% will be increased to a 40.5% tax rate if Obama gets his way.  Further, ObamaCare adds a new tax to be born only by people making over $200,000.  That tax is the 3.8% surcharge on any capital investment profits; including any profit from the sale of a home.  Additionally, many of those in the $200,000/$250,000 tax bracket are the ones who have purchased "Cadillac" heath insurance policies.   ObamaCare imposes a 40% against any policy under the "Cadillac" criteria.

Lastly,  the rich are getting beaten around the head by new and higher taxes at the state level.  In Illinois, taxes were raised by 57%.  A new tax on the rich is on Tuesday's ballot in California.  Put all together, the rich are being massively targeted by taxes.  But, more importantly, these taxes are draining funds from the very people who create more tax paying jobs in America.  Increasing taxes on the rich to solely maintain and grow economy-sucking governments is just idiocy.  Just look at Greece and Spain at near financial collapse and their near 25% unemployment rates.

--- National Taxpayers Union: Historical Tax Rate Tables For Top And Bottom Rates:


Mike Cornelia said...

I hate to read these types of things regarding our president. I wish that the rich could be taxed appropriately with there income. For the middle class the tax rate continually causes back taxes to pile up because the income they make sometimes isn't enough to pay off the taxes they are required to pay. I hope the year of 2013 brings optimism among the classes of society.

Cranky George said...

I guess you're naive and not of any true understanding of how our tax system works. The rich, on the basis of salaried income, always pay a higher tax rate than the middle class. 47% of this country pays zero taxes and that same 47% heavily feeds off government subsidies. If you are concerned about the middle class, ask yourself why 30 million people have fallen out of the middle class in the last 3-1/2 years under "your" President. That 30 million is a doubling since Obama took office. The middle class has lost an average of $4016 in income under Obama while seeing an average increase $2500 in health care insurance costs. You see, big government and spending is at the heart of all this. Excess spending does have both societal and economic consequences. Just ask the Greeks and the Spaniards. The Italians and the French. Or, the 27% inflation rate in Venezuela. And, all those empty food shelves. Taxes are not the solution to a healthy economy.