Must be new math

$250,001 a year = MILLIONAIRE!

While Nancy and Obama warn that the Republicans want tax cuts for “millionaires”, Heritage takes a look at the effects of raising taxes:

• Slower economic growth: Inflation-adjusted gross domestic product (GDP) would fall by a total of $1.1 trillion between FY 2011 and FY 2020. GDP in 2018 would fall by $145 billion alone. The growth rate of the economy would be slower for the entire 10-year period.
• Fewer jobs: Slower economic growth would result in less job creation. Employment would fall by an average of 693,000 per year over this period
238,000 fewer jobs in the critical economic recovery year of 2011;
In one year alone, 2016, job losses top 876,000.
• More unemployed Americans: Slower growth in employment translates to a higher unemployment rate, which would rise more each year during the 10-year period than it would without the Obama tax hikes.
In other words, for Americans who are unemployed now, their prospects of employment would worsen under the Obama tax plan.

And, as the Heritage notes, this is not a “tax cut” – tax rates will not go down. They will merely remain the same.

While it is widely believed that the President’s plan affects only those taxpayers who earn at least $200,000 ($250,000 if married), that belief is badly mistaken. Nearly everyone will pay something, either in lower income, higher interest rates, or more expensive products, to just name three effects. Economic life at all levels is so tightly interwoven that tax increases for one segment of the population will ultimately affect everyone.

But, but, but … we NEED the money.

That plan assumes that the U.S. government has a revenue problem, not a spending problem. If Congress agrees, a weak economy will be burdened even more by higher taxes on labor and capital, the tax base will erode as taxpayers adapt their income to higher tax rates, and Congress will move further away from financial solvency.

Besides, the tax cuts did not erode the nation’s revenue:

However, the point is this: Revenues after the major tax relief legislation between 2001 and 2005 flowed into Washington at nearly the same rate that the CBO expected before any tax cuts were made. Congress was never starved for revenue.

But fairness, bla bla bla. How much money does one need?

all businesses would be hit hard; 65 percent of joint filers with income above $250,000 and 50 percent of single filers above $200,000 earn business income. The numbers are not too different if only businesses reporting wage costs are counted: They are 55 percent and 42 percent, respectively. In other words, about half of those subject to the Obama tax increases are small businesses with employees. This tax increase would directly cut job creation.
The average non-farm small business filing through the individual income tax code would see a tax increase of about $3,500. Not only successful businesses would be hurt, although they would be hurt the most. Even firms with losses could face a tax increase, for example on capital gains, dividend, or carry-over income.

There’s lots more over there. Read it all.

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6 Comments on “Must be new math”

  1. OceanCat Says:

    Oooooooo The Heritage Foundation. They’re an honest group. They never, ever lie. :eyeroll:

  2. Car in Says:

    Why don’t you try to dispute what they say instead of calling them a liar?

    Otherwise, this is about as interesting as me simply replying that you’re lying.

  3. Car in Says:

    Why don’t you pick out ONE factoid and argue it?

  4. Hotspur Says:

    I’ll make it easier for him, Car in.

    OceanCat, give us one, just one example where the Heritage Foundation has lied. Feel free to go all the way back to their founding.

  5. agiledog Says:

    Just for the record, Hotspur, OceanCat is a “her”, not a “him”. And still a lying hack.

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