Obama to Seek Higher Tax on Affluent to Pay for Health Care

[Pirate Smile]

Source: The New York Times

WASHINGTON — President Obama will propose further tax increases on the affluent to help pay for his promise to make health care more accessible and affordable, calling for stricter limits on the benefits of itemized deductions taken by the wealthiest households, administration officials said Wednesday.

The tax proposal, coming after recent years in which wealth has become more concentrated at the top of the income scale, introduces a politically volatile edge to the Congressional debate over Mr. Obama’s domestic priorities.
The president will also propose, in the 10-year budget he is to release Thursday, to use revenues from the centerpiece of his environmental policy — a plan under which companies must buy permits to exceed pollution emission caps — to pay for an extension of a two-year tax credit that benefits low-wage and middle-income people.

The combined effect of the two revenue-raising proposals, on top of Mr. Obama’s existing plan to roll back the Bush-era income tax reductions on households with income exceeding $250,000 a year, would be a pronounced move to redistribute wealth by reimposing a larger share of the tax burden on corporations and the most affluent taxpayers.

Administration officials said Mr. Obama would propose to reduce the value of itemized tax deductions for everyone in the top income tax bracket, 35 percent, and many of those in the 33 percent bracket — roughly speaking, starting at $250,000 in annual income for a married couple.



Read more: http://www.nytimes.com/2009/02/26/us/politics/26budget.html?hp

---

The NYT stuck the "redistribute wealth" line in there. I'm sure the media and Republicans will try to tell everyone that redistribution is only OK when it is going to the top.

This is going to be interesting.

[aquart]

1. Think they can make do with one mansion and one yacht?

[DJ13]

2. My God man, Muffy might have to stop getting pedicures!

Cant have that!

[DUlover2909]

25. But those wealthy fat-cats have mistresses to support!

How is Paris Hilton going to afford her caviar, champagne, and chandeliers? Only 5 vacations a year? That will put countless hundreds of butlers out of work, not to mention pool boys and maids! This is preposterous! They paid for Ivy League educations so they could secure lives of privilege and luxury! Why then was writing those papers about The Faerie Queen necessary if they aren't rewarded endless opulence and prestige, being the upper crust of society and all. How will they pay for the stable-hands at their polo clubs or their caddies at the white's only golf courses? It takes money to pay for the guys that take care of their dobermans that patrol their estates. What about the guy that launches their clay pigeons on skeet shooting day? For Heaven's sake, the hardships that Obama is forcing on the ruling elite of this country is OUTRAGEOUS!

[w4rma]

3. Need to create another, higher income, tax bracket, also. And increase the capital gains tax.

Or just eliminate the capital gains tax and tax "capital gains" as income. Labor shouldn't be taxed at a higher rate than capital.

[pnwmom]

9. The capital gains tax is going to increase 33% when the Bush reduction expires.

This will happen in 2010.

[w4rma]

22. Great! I think it should be done away with and handled within the income tax system, though. (nt)

[DUlover2909]

26. Yeah, 15% on capital gains is effed-up stupid.

Income is income, whether it's from flipping burgers, inheritance, or gambling (which is all the stock market is anyway).

Oh, and also TAX THE CHURCHES!!!! Tax them! Remove tax exempt status from churches that spend money on politics or preach politics to their congregations. That would shut those idiots up in a hurry.

Force the off-shore accounts to be returned to the US, and TAXED!

Legalize and tax Marijuana (or hemp or whatever). Make paper and birdseed from it. Industrialize hemp production and tax nylon and other synthetics through the freaking roof. Hemp has a bunch of uses, and it's a renewable resource.

[crim son]

4. Interesting. My sister and her husband are "affluent."

Before the election, we spoke about healthcare, and the vote, and my dear sister told me that she thought it was crazily unfair that she lived as well as she did while people died for lack of basic medical treatment, right here in the U.S. Her sentiment: I'd gladly give up a portion of my lifestyle so that others could live with health.

I mention this because it's important to remember that wealth doesn't necessarily equal evil, uncaring or even republican.

[mzmolly]

5. Exactly. In fact, the affluent were said to be Obama supporters by a good margin according to

various polling data.

Think about "liberal hollywood" and their overwhelming support of Democrats. They're willing to pay higher taxes for a better country. Imagine that?

[crim son]

10. Happily, I don't have to imagine.

And thanks for your response!

[mzmolly]

37. Well now,

you have me intrigued. :hi: ;)

[Pirate Smile]

6. True. Tweety actually made a decent point today (whaaa???) - he said that Republicans view taxes as

a punishment, Democrats view taxes as just a necessity to pay for government services. It isn't a punishment. It is a way to cover 50 million uninsured people.

[Lugnut]

7. I heard that.

Michelle Bernard referred to taxes as punishment on Matthews' Midnight program on Tuesday night/Wednesday morning which I thought was an odd statement. I thought most people understood that paying for essential services is the only wat to have them. :shrug:

[Pirate Smile]

8. Republicans always argue that we are punishing people for their success.

Idiotic? Of course.

[christx30]

11. Unfortunantly,

a lot of the people that run the corps are wealthy repukes that we are going to need to make this happen. And they do view higher taxes as punishing them for their success. I'm sure most of them look at it like this: If I was living in a country that wanted to punish my success by soaking me in taxes, I may just take my ball and go home. If we lose even more of our businesses move overseas due to the high taxes, how are we going to take care of the health care of the people that depend on it? Further, when the jobs are lost to this, how will I feed my family? I have a wife and 2 kids, and since I lost the job I had for over 12 years (one of the reasons I was given was high taxes), I went from $14/hour to $8, plus whatever I can get from odd jobs around the city. Last weekend I made $40 holding a sign for 6 hours just so I could get dinner.
Taxing the hell out of people isn't the answer. Finding ways to attract businesses back to the US is the way to get people back to work
Bush was a failure at this. He had an amazing knack for turning everything he touched to a steaming pile of crap. I hope Obama understands that we need to make the US competitive again. Get China off our back.

[Pirate Smile]

14. The Republican wealthy can try to blackmail the country to just keep those 50 million

uninsured because they view asking the most financially comfortable in society to give a little more for the good of all the people as a bad thing.

They would choose to continue the suffering of so many instead of giving a little more of that which they have in abundance.

I don't think most rich people are quite so selfish if this issue is framed in the right way by Democrats. We aren't getting nothing for these changes. We would be gaining an enormous amount as a country.

You do realize that businesses are now aware of how much they would save if it was no longer their responsibility to provide health-care to their employees? A lot of businesses realize the current health-care situation is a huge burden on them.

Do you get health insurance through your work?

[christx30]

21. Not yet

I've only been there for a few weeks, so I don't have heath insurance through them yet. My kids have Medicaid. My wife and I are just hoping that we don't get sick.

[cascadiance]

15. Take their ball and "go home" by LEAVING the counry? How "American" (or "Dubai") of them!

I think most of us here as part of the vast majority of Americans feel like the elites have been PUNISHING us since the Reagan era by paying themselves more at our expense because as the bosses "they could", without a strong government, especially when it's being governed by institutionalized BRIBERY by these folks for so many years now.

There's a reason why our country has moved into being the most productive country in the last decade or so. That's because we are UNDERPAID! And to correct that when they are making the rules within companies over who gets paid more and who gets laid off, we have to get the government to work for us to even things out.

That was what was necessary after the first Republican Depression. It is also necessary to stave off THIS Republican depression. The recipe for fixing things was provided by FDR by fixing the tax codes to even out the playing field, and compensate for the exploiting and widening of the wealth gap which has been the mission of this generation of robber barons like it was back at the beginning of last century.

The only thing that's going to fix the systemic problems that are causing the economic problems we have now aren't going to be bandaids but solving the fundamental differences of the wealth gap, and restoring the confidence of the middle class that they can have financial security that they felt back in the times before Reagan.

Yes, globalization is a problem and an obstacle to this. But the answer isn't for us to settle for losing our middle class here to be like those in other countries in the "race to the bottom" that the wealthy want to foster, but to raise the wealth EVERY PLACE so those places that the wealthy want to exploit in their goals for the race to the bottom no longer exist, and they have to readjust their sense of who should get paid for the costs of labor, protecting our environment, etc.

[digidigido]

18. There are ways to do this. Cutting off tax breaks to companies that outsource

Giving tax incentives to companies that employ Americans. It needs to be well thought out, but the rich were talking about
this when the top marginal tax rate was between 70 and 92%. They may be pissed, they may try to shelter money, but I'd
be really surprised if people are going to take their ball and go elsewhere even if the taxes on the super rich escalate to 45%
They have had 20 of the last 28 years to redistribute the wealth to themselves, they have to know they're going to lose
some now.

[FrenchieCat]

19. How do you think those folks made their money?

By profiting from being part of this society.

Some people call it taxing the hell out of people, others call it giving back.

BTW, you sound just like one of those Republicans talking about attracting Business who have gone offshore in order not to pay taxes to come back by lowering their taxes. Why should they not have to pay for the priviledge of doing business in the greatest country in the world? Why are they so special?

[christx30]

23. So we go after them

What is to stop them from taking that money and putting it into Swiss accounts or other kinds of tax shelters? I'm sick of their crap as much as the next guy. But where am I going to get a job? I as making almost $15 before I was laid off. Now I'm making $8. If it weren't for the severance I got in December at my old job, and the tax refund I got 3 weeks ago, I would not have rent. When I think about all of the jobs that are overseas now, it sickens me. But I think the dems would do well to cool it with the whole "evil rich" thing. Were are the jobs going to come from? The government?

[comtec]

24. I call BULLSHIT on you

and smell freeper talking points.
You may simply be waking up to the reality of the *co system.
Your job was not cut because of some bullshit tax increase!
IF your company's taxes went up it's possibly because they made more money.
Either way I call bullshit!

Your job loss was probably the result of your boss, or his boss, taking money to pad his fat corporate ass, and to screw you!

I'm in the IT sector, and am equally pissed about MY job(s) that have been outsourced.
They are "low" end jobs that I could have done while looking for a proper IT job, but they're GONE!
I've been fortunate to have gotten contracts here n there (before the collapse) and I've dealt with indian "support" and it's utter crap! Those people could not give half a fired rat's curried ass about actually giving help.
They just read what's on the screen and click when your answer fits in one of the boxes (so help me thats how it goes)

You have my sincerest sympathy about your situation. It is utter crap, that you're working for half your previous pay.
8/hr is nothing and for someone with a family it's even less.
You should be grateful for the S-chip program that's covering your kids tho.
THAT was started, iirc, by CLINTON, and *co would have done away with it COMPLETELY if they could have.

I am all for taxing the ever living FUCK out of the RICH!

Mind you, the RICH, we are honestly talking about make well over anything you or I will see in our life times... were talking about people who make OVER 1 M I L L I O N (that's 1,000,000 for the illiterate) dollars A YEAR!

Taxing them at 50% is not unreasonable, considering that's AFTER their expenses.
Expenses, deductions, etc, brings down TAXABLE income by quite a lot.

One more thing, I;'d L O V E to be in that 50% (it's currently 39) tax bracket! OMFG I could afford an accountant, and everything!
A higher tax bracket is something to ASPIRE to, not be repulsed by. It means you're doing well, better!


but I suppose you're a freeper. most libby;s are, and could really care less about the details, and facts of what caused this mess we're all in. and the complex details of how to get out of it.

welcome to DU, somehow i don't think you're going to last.
Since the election our tolerance for freepers has become very very low.
I sincerely hope you're just angry and confused, understandable considering the lies 24-7 that the corporate and RW media have been spewing for the last 20 years.

We're here to console and educate the willing.

And remember Regan's unforgettable quote:

"The most dangerous thing to this government, is an educated populace."

(edit: you're think i'd learn to spell-check my own title by now *blush)

[christx30]

29. Thank you for the warm welcome

I am not a freeper though. I am grateful for my son being covered by medicaid. He is sick tonight and I might have to take him into the ER.
I just don't know what to think about how things are right now. I want them to pay more, but I'm afraid that in their greed, they will take the jobs that we depend on and more and more will end up being done overseas. I see it happen all the time.
And as much as you want to call bullshit about the tax thing being one of the reasons for the layoffs (my entire factory was shut down, with staggered layoffs starting in August and lasting until I was one of the people that finished shutting the building down on November 11th), one of the specific reasons my manager (who's job was gone on Oct. 15th) told me was because of the high taxes. This was still during the bush misadministration, so I can't imagine what he was talking about.
But again I ask: Now what? 50% isn't that bad of a tax rate, but it will still push a lot of the job providers to other countries. And politics is great, but I still have to pay the rent. And I'm willing to work for just about anyone. And I would rather have some CEO type pay less tax and give me a job than to tell him that he has to pay 50% and watch as his jet leaves for Bangladesh. He doesn't care. It's all the same to him. If he can't make a profit here, he will do it elsewhere, and my family will suffer because of it.

[comtec]

35. My heart goes out to your and your son

I hope it turns out not to be permanently serious.

I spent more than a couple years with county medical in Northern California.

I am currently paying 30+% taxes, as I live in Holland currently.
the top tax bracket is 52% and that's at 54,000€ . The tax system here is 5 kinds of broken.

As far as a CEO moving off shore because it saves him some tax money, that CEO should have the fist of GOD come down on him if he expects to do business in the US.

We have the lowest tax rates of any industrialized nation.

Employees should NOT EVER be willing to take abuse for a possible crumb from the fat cat's table.

If a CEO wants to live in the US, if his company wants to do business IN the US, then they MUST pay their fair share of taxes.

IMHO we should stop all H1-B visas, and severely penalize all companies that off shore jobs that can be done locally.

Ironically I work at an American Company, but we only service Euro's from my office.

I wish you well, and hope things pick up for you soon.

In the end, if the Fat Cats don't play fair... what's the point of US playing fair?

[HughBeaumont]

31. Er. NO.

. . . . and . . . yeah, NO

and

well, NO again.

Taxes are for maintenance. Not prosperity. Smellin' it a mile away, there.

[DUlover2909]

27. Taxes can be a form of punishment though.

Punish beer and tobacco users or carbon emitters. It's an incentive program.

[Journeyman]

12. A client of mine is one of the wealthiest people in California. . .

old money, inherited riches, yet this person supports a wide array of socially conscious institutions and causes, and has told me on numerous occasions they felt the BushCo tax reductions were "shameless" and "obscene." Politically, this person donates often and in substantial dollars to a variety of Democratic candidates and groups.

So yes, it is important to remember what you've pointed out: wealth serves its holder, and can be neither wicked nor gracious without a conscious determinant act.

[crim son]

13. You put it better than I.

Thanks.

[shanti]

39. i feel that way too and i'm not even wealthy

i don't enjoy seeing people in pain.

[many a good man]

16. I hope he makes special provisions for small business

Sounds like Obama wants to end the Bush tax cut on the wealthy instead of just waiting for it to expire. That's FANTASTIC news!

I hope it won't penalize small businesses, though. If Democrats can change the perceptions and come to be seen as the friend of small business then we'll have an unbeatable majority secured for a generation.

[eridani]

34. Not necessary. We are already paying enough to cover everybody

Get rid of private insurance, and put small businesses on the same footing as everyone else. Everybody in! Nobody out!

[quidam56]

17. See what is deemed, defended and supported in Tennessee as THE ACCEPTABLE STANDARDS OF HEALTH CARE.

http://www.wisecountyissuse.com Profit care comes ahead of Patient care in East Tennessee !

[KillCapitalism]

20. Be careful who you call rich.

I'm surprised some DUer from California or NYC hasn't chimed in with their opinion that people that make $250,000 a year are part of the working poor. :rofl:

[Hell Hath No Fury]

36. One of the CNN heads this morning --

Heidi Collins I think it was -- did exactly that whenever the story was talked about. But but but but what about the people in metro areas that are expensive to live in???, how can you survive on just $250k???, she blustered repeatedly.

Note to Heidi:

Making $250k a year is wealthy, no matter where you live.

I live in SF, perhaps the most expensive city to live in in the United States. No one I know personally -- no lawyer, no engineer, no nurse, no other professional makes $250k a year in this town, and they all manage to live here quite nicely. :eyes:

It's fun watching the socially irresponsible wealthy try to justify their greed.

[KillCapitalism]

38. Ha...thank you.

My sister in law and her fiancee live in the NYC area on about $90K per year & they do just fine.

[dmosh42]

28. What about the subsidies going to Exxon, etc.....?

That would be another source of money. Being that the oil companies have been making so much, without any new investments like refineries, why do we keep paying?

[Blue Gardener]

30. A tax on imports to pay for health care

Is still the best idea I've heard.

[jmowreader]

32. Gee, I wonder which way the editor votes

:sarcasm:

Because obviously if you think people dying from treatable conditions due to lack of fund$, you're a filthy commie.

[eridani]

33. Tax the rich, but it is NOT neccessary to do it for health care, of all things!

We are ALREADY PAYING for universal health care; we just aren't GETTING it! Spend the money on green jobs, where new money is needed. For health care, just get the damned private insurance parasites out of the game. Enact HR 676.