Bold Colors Blog

Stickin’ it to the libs, one day at a time

Unexpected honesty about Obama’s tax plan from ABC News

Posted by Liberty on March 3, 2009

Upper-Income Taxpayers Look for Ways to Sidestep Obama Tax-Hike Plan

Truly, I didn’t expect to find a story critical of Obama’s tax plan on the ABC news website but there it is!  It certainly comes off as vaguely critical of the messiah, Barack Obama.  The author, Emily Friedman, has focused on how Obama’s tax plan will impact people making over $250,000 annually.  The consensus among the interviewees is that they will do what is necessary to earn less to avoid Obama’s punitive taxes.

“Dr. Sharon Poczatek, who runs her own dental practice in Boulder, Colo., said that she too is trying to figure out ways to get out of paying the taxes proposed in Obama’s plan.

‘I’ve put thought into how to get under $250,000,’ said Poczatek. ‘it would mean working fewer days which means having fewer employees, seeing fewer patients and taking time off.’

‘Generally it means being less productive,’ she said.

‘The motivation for a lot of people like me – dentists, entrepreneurs, lawyers – is that the more you work the more money you make,’ said Poczatek. ‘But if I’m going to be working just to give it back to the government — it’s de-motivating and demoralizing.'”

Dr. Poczatek is absolutely right.  The demoralization that she’s feeling is a natural side-effect of redistributive economics.  The real unintended consequences of Obama’s tax policy will be the loss of productivity.  Think job losses now are bad?  Just wait.

“Obama’s budget proposal calls for $989 billion in new taxes over the next 10 years, most of which will be earned from increased taxes on individuals who make more than $200,000 and from families who make more than $250,000.

The expiration of the Bush administration’s tax cuts at the end of 2010 would garner an estimated $338 billion, $179 billion would come from the elimination of some itemized deductions for higher-income taxpayers and $118 billion would be brought in from a hike in the capital gains tax. The remaining $353 billion would come from taxes on businesses.”

Not many are talking about how the expiration of the Bush tax cuts will affect the economy but we should be.  The expiration of those cuts will equal a tax increase for the bulk of taxpayers.

The ABC news piece also features a poll.  The question is, “is it fair to reduce salaries to sidestep President Obama’s tax proposal?”  As of 8:08 this morning, the answer “Yes. I also would find ways to decrease my salary to avoid taxes” had a significant lead.

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10 Responses to “Unexpected honesty about Obama’s tax plan from ABC News”

  1. Chris said

    Umm, do you not know how taxes work? Tax rates are on marginal dollars. Increased taxes on those in the > $250,000 tax bracket only tax those dollar earned past $250,000. Cutting one’s income to $249,999 because of Obama is the stupidest thing I’ve ever heard.

  2. Liberty said

    Oh, I understand how marginal tax rates work. Perhaps it’s more the principle of Obama’s tax plan that these people object to.

  3. Joe said

    If you are against the principle — then argue against the principle. Claiming that you are going to try to lower your income below $250,000 is either an admission of incredible ignorance, or it is a blatant attempt to deceive others who don’t understand how marginal tax rates work. Either way, it’s reprehensible

  4. TruePatriot said

    Yes, your “principles” are so good that these morons are going to throw away money, just to make Obama’s tax plan look bad. The article was ridiculous, and has been corrected by ABC, but I’m interested, which do you think is more demoralizing? Paying an extra $300 of taxes on your $260,000 legal practice, OR, working 50 hours a week and still not being able to afford health care for your family? Won’t someone think about the poor lawyers?????

    You made a fool of yourself posting this insanely wrong article, and your sick in the head that with everything going on in the world today, your worried about the wealthy. I really hope the Republicans continue to spit in the face of the 95% of Americans getting tax cuts by whining about the oppressed 5% who can afford their own health care and schools…

  5. Liberty said

    ABC did make clarifications to the article and those are available at the original link. They made the concept of marginal tax rates a little more clear.
    Strangely enough to you, I do have more sympathy for the high earners being targeted by Obama’s tax plan. Redistribution of wealth is a moral abomination and clearly destructive to the human spirit. High earners don’t get wealthy by stealing from the poor and middle class–they earn it. They also generally don’t hoard it away, either–they spend it. They start businesses, they employ people, they contribute to other people being employed by consuming goods and services. Stifle the wealthy and you’ll stifle the whole economy.
    And anyone who still believes the campaign crap that 95% of tax payers are getting tax cuts is deceiving themself. There may be $13 [or whatever Obama’s “tax cut” works out to] more coming your way for now but that’s chump change compared to what you’re going to end up paying. Obama is spending at record rates and throwing my child’s children into debt–there is no way that the mythical 95% are going to escape paying, either. Just think about it–TARP 1, TARP 2, all the ridiculous pork in the stimulus bill, his homeowner rescue plan, socialized medicine, cap and trade…you Obama maniacs are going to pay out the nose, just like the rest of us.

  6. Steve said

    Here, I’ll ask you to do a quick calculator to prove you understand the choice these people claim to be making. Suppose the marginal tax rate on income over $160,000 is 36% and that the cap on deductions for people whose income is over $250,000 is 28%. If you make less than that then you can deduct 28%.

    How much after-tax income would a person making $320,000 have and how much after-tax income would a person making $250,000 have if both used deductions up to the limits above?

  7. Steve said

    Edit: I meant for those under $250,000 it should be up to 33% deducted.

  8. Liberty said

    How about we just not give millions to Hamas or ACORN or Planned Parenthood and
    not raise taxes on anyone? There is so much waste and pork in the stimulus bill, Obama’s budget and coming down the pike, it’s ridiculous. If these people have a problem with paying a higher tax rate, I’m fine with them making this decision, whether or not you can definitively prove that it pencils out mathematically. The thing that I think is important is that they highlight one of the major problems with the redistributive policies that Obama is embracing–punishing success and rewarding failure.

  9. speecharchive said

    Here’s Emily Friedman Trying to power an iPod with an Onion and Gatorade. One is left to wonder which has the lower IQ: Emily Friedman or the onion.

  10. Erika said

    I need to vent about our tax cut. We’re one of those 95% of Americans who got a tax cut. We got a whole $17 more a week for about a month. And then our healthcare premiums went up. Our employer had to switch providers, and now we’re getting a whole $2 extra a week, for how much longer now? That doesn’t mean that I want socialized medicine in order to have more affordable healthcare. In a way, the threat of socialized medicine may be helping private companies to see that things must change in order for them to survive. Socialized medicine doesn’t really make people any happier. People from overseas come to U.S.A. to receive the best care the world can give. Socialized medicine will change that. Back to the tax cut— it may have helped to cover a bit of the higher rate [perhaps, never did the true math], but still need more significant money in paycheck! The tax cut was definitely OVERRATED!!!!

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