The Hard Fiscal Facts--Individual tax payments are up 26% in the last two years

WSJ ^ | 11-11-12 | Editors

[TurboZamboni]

Mr. Obama won't want you to know this, but this revenue increase is occurring under the Bush tax rates that he so desperately wants to raise in the name of getting what he says is merely "a little more in taxes." Individual income tax payments are now up $233 billion over the last two years, or 26%.

This healthy revenue increase comes despite measly economic growth of between 1% and 2%. Imagine the gusher of revenue the feds could get if government got out of the way and let the economy grow faster.

Now let's look at outlays, which declined a bit in 2012. That small miracle was achieved thanks to a 4% fall in defense spending, a 24% fall in jobless benefits, and an 8.9% decline in Medicaid spending.

Note, however, that federal spending remains at a new plateau of about $3.54 trillion, or some $800 billion more than the last pre-recession year of 2007. One way to think about this is that most of the $830 billion stimulus of 2009 has now become part of the federal budget baseline. The "emergency" spending of the stimulus has now become permanent, as we predicted it would.

[TurboZamboni]

Even if Mr. Obama were to bludgeon Republicans into giving him all of the tax-rate increases he wants, the Joint Tax Committee estimates this would yield only $82 billion a year in extra revenue. But if growth is slower as a result of the higher tax rates, then the revenue will be lower too. So after Mr. Obama has humiliated House Republicans and punished the affluent for the sheer joy of it, he would still have a deficit of $1 trillion.

[Cboldt]

How much of the the increase is attributable to activity, and how much is attributable to inflation?

[Gaffer]

The goal here isn’t to tax the rich only. They can’t get enough, even at 100% tax to pay for the largesse he’s committed.

His goal - always has been - is a massive, massive transfer of wealth from makers to takers. The single largest source of untapped real liquidity is private retirement funds - IRAs, 401Ks, and savings.

You will see before this next four years is out a proposal and full-on press to, first, assess a one-time ‘fairness’ assessment on all private retirement funds and savings (greater than the average amount a leech Democrat can put back) 10-20% is my guess.

This will go on for a year while they revel and spend in the new-found wealth and realize it isn’t enough.

They will end up CONFISCATING them all, and give each one of you suckers who had the temerity to save, the luxury of ‘saving America,’ and you will be ‘rewarded’ with an ‘extra’ pittance each month in your workers’ retirement payment.

[griswold3]

Not sure about other sectors, but the price of corn alone has gone up 89% since Obama was sworn in. We sold corn for $3.55/bu in Jan 09 and this harvest we sold corn for $7.87/bu. (Avoid much loss from the drought here)
That is a significant increase in income.

[Pearls Before Swine]

Note, however, that federal spending remains at a new plateau of about $3.54 trillion, or some $800 billion more than the last pre-recession year of 2007. One way to think about this is that most of the $830 billion stimulus of 2009 has now become part of the federal budget baseline.

That's why Obama and the Dems were never serious about passing a budget. They had an increased baseline and operated from continuing resolutions and debt ceiling rises without ever having to add up the year's expenses in one place for all to see and debate.

[Pearls Before Swine]

A wealth tax is indeed something Obama would love. It might cost him the support of some of his current backers, though. I also wonder if a Constitutional Amendment would be required--it took one for the income tax.

That's not to say that they won't nibble around the edges of taxing wealth. Even now, there are many restrictions and penalties on pension funds, such as early or late withdrawal penalties. There are also real estate taxes. And, the inheritance tax is back. Also, a change in citizenship is considered a taxable event, equivalent to a forced sale and tax calculation. So, wealth gets penalized even now, but not directly tapped.

[Thom Pain]

What is this “Constitution” thing that you and others talk about? Per Mr. Obambi, “we don’t need no stinkin’ constitution”!

[Gaffer]

It might cost him the support of some of his current backers, though

Do you honestly think Obama gives a crap about what is rich backers will think now? He has what he needed for him.

His goal is one of ideology, continued socialist and Islamic programming to devolve the Great Satan. He got the unwashed leech masses, he got the rich Hollywood liberals - he got them all. There is so much pent-up hate in has black heart it knows no bounds and he simply doesn't need approval any more.

Assessment of private retirement funds and savings has been a liberal wet dream for decades. Last try was Hillary and her socialists just prior to the 94 elections. They were going for Hillary Care and Retirement Fairness but a new Republican House stood in their way. Simply said, these funds are the only - repeat only - source of readily available liquid funds they can get at (without printing Wiemar money). They will do it because their ideology demands it. Rules don't matter to them - they'll just make new ones.

[Cboldt]

-- What is this "Constitution" thing that you and others talk about? --

It's whatever the federal courts say it is. See Alice in Wonderland.

[gotribe]

Remember, to obama the entire U.S. is the 1% - the 1% of the world. He’ll tax us all to hell and back.

[1rudeboy]

ping

[Chgogal]

One way to think about this is that most of the $830 billion stimulus of 2009 has now become part of the federal budget baseline.

Bongo! Why haven't Conservatives and RINOs made this part of their reelection?

[expat_panama]

 Typical WSJ half truths.  Here're their numbers...

--and the actual whitehouse.gov spreadsheet says:

This WSJ is in fantasy land.  What they call "Hard Fiscal Facts" is nothing more than the latest whitehouse estimate of $2,468B for 2012.  Last July they estimated it would be $2,627B.  FY2012 ended Oct.1 but they evidently don't have the final number yet.  When it does come out my bet is that the 'actual' will probably be even lower.