Obama Tax Hike vs. Obama Deficit And US Debt

The folks at Media Matters for America are outraged! that Fox News is pooh-poohing Obama’s proposed tax hike:

Fox Dismisses New Revenue From Expiration Of Bush Tax Cuts For The Wealthy As “A Drop In The Bucket”

Let’s see, the tax hikes will allegedly bring in  $850 billion over 10 years….divide by 1, carry the zero and that’s, $85 billion per years. Lots of money in the real world but in the world of government spending and $1.2+ TRILLION deficits, not so much.

Let’s do a little old school data visualization for the folks at MMFA…

Hmm, not that impressive in terms of denting the deficit.

Let’s add in another variable: FY 2012 (which ends at the end of this September) spending ($3.796 Trillion) as enacted by the Congress and signed by Obama.

Oh my, that makes the $85 Billion per year seem even less consequential.

And one more, this time with our total federal debt (almost $16 Trillion and growing).

Nope, that didn’t help.

Official ruling: A drop in the bucket to the federal government whose spending is out of control but a serious hit to people who earned it.

Of course all of this is based on the silly notion that increasing people’s taxes won’t impact their behavior in any way. And mind you, Obama hasn’t said this supposed new revenue will go to cutting the deficit or paying down the debt, it will go to new payoffs for his cronies, er, “investments”.

As always…you can purchase you copy of POTUS Predictor 2012, the ap that let’s you predict the outcome of this year’s election and share it with friends via facebook and Twitter for Android and Kindle Fire, iOS versions coming soon!

About Drew

I blog about politics and hockey because I sort of understand those things. I'd blog about women but I'll never understand them.

Posted on July 27, 2012, in Uncategorized. Bookmark the permalink. 8 Comments.

  1. Another thing that doesn’t seem to occur to these people is that “incomes over $250,000” aren’t perpetual. Your business might struggle along for years just barely getting by, and then finally some of your plans actually catch a wave and you make $300K and can pay off all those credit cards and loans you lived off of over the years…..except that the government will now swoop in and grab it.

    Previously, when we had extremely high taxes on larger incomes, there was a thing called “income averaging” where earning $25K for four years and $300K the next would have you pay the same as if you’d made $80K each year. This plan looks more like “heads I win, tails you lose.”

  2. Boy, that piggy bank in my kids room is looking pretty tempting right now,,,,,,,,,,,Its not his money anyway,Its MINE MINE MINE.
    Thats right,Im not being serious and neither is MMFA if they think we are fooled by the BS they spew about things like this.

  3. Projected revenues never materialize. The increased “price” of labor resulting from higher taxation means some people will just work less; some people won’t be able to meet the burden and stop altogether.

    One of the things I’d change if I were King For A Day is static analysis by government bureaucrats. They should use better models which better predict what will happen in the real world when they make the cost of doing business higher.

  4. Also: I like the newish format for the blog, but the particular color scheme reminds me of an NBC-family website.

  5. Forget dividing by 10. If you could magically collect all 850bn in 1 year, you’d still increase the deficit by 420bn. If that doesn’t make it clear, nothing will.

  6. Speaking of being King for a Day, I’d like to see all the 3rd generation welfare voters kick in $5/week in taxes. Hey, they are saving that much in smaller soda savings. Honestly they(sadly) use the ER, police/prison forces, food banks/social services/rehab etc, more than a 1%ers. As barry would say “Have some skin in the game”. Maybe then, they would pay REAL attention to how they can truely participate in this Republic.

  7. I hope everyone also sees that despite all the talk of “paying down the deficit or the National debt”? Ain’t NEVER going to happen.

    There is NO WAY that that will ever happen. If we stopped ALL government spending AND devoted our entire GDP (15trillion)to paying off the debt it would still take a year to pay off.

    Given that that is an impossible event, let’s say we pay down the debt by stopping all government spending (a never never land assumption) AND spent 10% of GDP on paying off the debt, it would take 10 years.

    Since both these assumptions can never come to pass no matter how well meaning any one in charge is, I posit that the National Debt will NEVER be paid down. The best we can hope for is that we have revenue neutral budgets and even that is wildly optimistic that that can ever happen.

    So let’s be serious when we talk about austerity and budget cuts. It’s ALL smoke and mirrors folks because the people in DC know that any measly savings accrued will be a drop in the bucket. What they’ll be fighting over is who’s pet projects and who’s state will get shafted by the budget REARRANGEMENT.

    OH and since this is reality and I’m sure Ron Paul knows these facts, then he is a liar just like the rest of them. His only interest in the budget and the debt is to accrue points to get HIS people and HIS state the benefit of any budgets.

  8. Here’s something else that makes 85 billion a year even more inconsequential:

    in 2011 The government was spending money at a rate of $6.75 Million dollars per minute.

    At that rate… $85 billion will keep the government running for… oh… 8.23 days.

    When you put it that way… It really does seem like a small amount.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: