To Pay for Health Care, Obama Looks to Taxes on Affluent

[Turborama]

Source: 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.

Read more: http://www.nytimes.com/2009/02/26/us/politics/26budget.html?_r=1&ref=todayspaper&pagewanted=all

[marshall]

1. Which is it, people earning over 250,000 or households earning over 250,000

This is the first place I've read it being "households", which presumably would mean the combined salaries of both spouses.

[cascadiance]

7. And to avoid getting nailed on changes to payroll tax...

He should LOWER the payroll tax rate AND remove the cap altogether, so that those making $250,000 will be paying the same actual number of dollars they paid with the older cap at the newer percentage rate when applied to their full $250k salary. That way, he still keeps his promise of not raising any taxes on those making $250k or less, and actually we give an additional tax break that way to those making under $250k.

[MineralMan]

2. I know...let's go back to the Eisenhower-era income tax

schedule. You know, the good old Republican days the GOOPers keep talking about, when everything was good and America had morals and shit.

The rich GOOPers should want to celebrate those days, I'd think.

[bread_and_roses]

3. The only groups for whom this is "volatile" are our Corporate Masters and their media lapdogs

who will do their best to obfuscate and spin - if the Democrats would speak in plain language about fair taxes for the rich they would be less vulnerable to the RWers being able to convince ordinary wage-earners that they will somehow suffer if the top 5% pay their fair share. Good for Obama for even going as far as he is - not far enough yet, but it's a start after the gains the Oligarchs have made lo these many years and most especally in the last eight.

[brooklynite]

4. Please tax me more...seriously

I make six figures...my wife makes seven. We have no kids, the house is paid off and we save a lot for retirement. We don't need more income to encourage us to work more productively. We can afford to contribute more for national needs.

[WriteDown]

5. My only question....

You are able to pay more taxes now. Why don't you? Congratulations on doing so well.

[goclark]

8. Thank you for your honesty

It would be wonderful if others could feel the same way.

I do understand.

I am retired but when I made 6 figures I didn't think about giving any of it back.

I paid what was requested of me.

In this economy and with this President I would not think twice about paying whatever I was taxed.

Even retired, I am giving more than before to family members and charities that need help.

Those to whom much is given, much is expected.

:hug:

[uppityperson]

10. Donate to your local library schools firedept foodbank shelter freeclnic etc

Do it directly rather than through the gvt, that way you have more control over what use it goes for (food vs bombs for instance)

[Paranoid Pessimist]

6. Article published in Common Dreams Tuesday spells out the rationale pretty well

The amount of money that goes into executive pockets is staggering. So is the amount that comes out of those pockets in taxes: precious little. America's super-rich are paying far less of their incomes in taxes than average Americans who punch time clocks. This is grossly unfair. The good news: Under Mr. Obama's new plan to cut the deficit in half, the very richest Americans will start paying something closer to their fair tax share.

In actual economic practice, those lower taxes have served instead to fuel speculation and increase budget deficits. For the ultrarich themselves, the tax savings have been nothing short of breathtaking. Back in 1955, America's top 400 paid more than 50 percent of their incomes in federal tax, almost triple the rate of today's top 400.




http://www.commondreams.org/view/2009/02/24-9

[MetaTrope]

9. Illiterate Journalists...the word is "effluent"

:smoke:

[BanTheGOP]

11. I've advocated the following...

... economic taxation polices HERE:

Tax ALL earnings 100% over 10 Million dollars. NOBODY is WORTH more than 10 million a year, and all monies over that amount should go to helping people, not padding the greed of republicanized bastards.

Tax ALL earnings 70% over 1 Million dollars. Same reason as above.

Tax ALL earnings 50% over $75,000. This establishes fairness in our code.

Tax earnings 35% over $20,000. This helps us fall in line with the rest of the world in economic fairness.

BAN all corporate boards. In fact, for all companies over 50 employees, create a "citizen" or "people's board" to ensure that the direction of the company goes toward creating product that will help the citizenry, not provide dollars for profits of the board members.

Eliminate ALL "golden parachutes."

Establish ACROSS THE BOARD profit sharing for ALL employees, administered by the citizen boards and the US Government.

Ensure that companies maintain a systematic and measurable adherence to environmental protocols.

Eliminate stock movements for corporations, ceding control of the financial stability of all companies to citizen boards.

WARNING>>>>NONE OF THIS CAN HAPPEN UNTIL WE BAN THE republican PARTY....

This will ensure that we don't just tax the rich, but make it impossible for extreme income to occur in the first place.