Obama and the Class Envy Card

  • conservativej...

    Posts: 2478

    Aug 21, 2011 1:26 AM GMT
    Foreword: My assumption has always been when someone attacks you because of the obvious accomplishments in your life the root cause of that attack is envy. On RealJock, I've been the subject of such faceless nameless attack. I thought it appropriate to post the following article authored by Seve McCann.

    Barack Obama, the Left and the Democrats are determined to continue their never-ending and over-used drum beat of "raise taxes on the rich." While of little practical value in solving the nation's overwhelming debt and deficit problem, this siren song aims to foster class envy, intimidate opponents and foment potential violence. It is the action of a desperate administration and party attempting to obfuscate their abject failure in growing the economy and creating jobs.

    The IRS issues a report every year analyzing the tax filings, receipts and payment by income groups. The report for 2009 has just been issued. It fully contradicts the mantra of the Left that by taxing the so-called "rich" the United States could solve its deficit problem without severe cuts in spending.

    In 2012 the projected annual deficit will be around $1,100.00 Billion and near that same amount in 2013.

    President Obama in his usual demagoguery always focuses on the "millionaires and billionaires." In 2009 there were 236,900 tax returns filed showing an adjusted gross income of $1,000,000 or more. This group paid $177.5 Billion individual income taxes out of a total of $726.9 Billion in total AGI or an effective rate of 24.4%.

    If the nation were to go down the road of increasing the tax rates or eliminating deductions on this group and create a 25% higher effective tax rate of 30.5%, the additional revenue to the Treasury would be $44.1 Billion. Still $1,055.9 Billion short of mitigating the deficit. A 40% higher effective tax rate of 34.1% would generate only an additional $70.3 Billion.

    That assumes a static number of taxpayers would continue to earn over $1,000,000 per year. In fact, the number of taxpayers in this group changes almost yearly and as an absolute certainty this variation would become far worse if the effective tax rate were to be raised dramatically particularly when factoring in already high state and local taxes.

    In 2007 there were 392,200 income tax returns filed showing an AGI of $1,000,000 or more; in 2009 there were only 236,900, a drop of nearly 40%. Worse, among those showing an AGI of $10,000,000 or more the number fell from 18,394 in 2007 to 8,274 in 2009 (a precipitous fall of 55%). The receipts to the IRS from this income sector declined from $310.1 Billion in 2007 to $177.5 Billion in 2009. (-43%)

    Therefore the reality is that other income groups would have to be included in any tax increases if Obama and the Democrats are insistent on "revenue enhancers."

    In 2009 there were 3,688,000 filers in the $200,000 to $1,000,000 AGI sector. They paid $256.8 Billion in individual income taxes out of a total Adjusted Gross Income of $1,237.4 Billion or an effective rate of 20.8%. Were the effective rate to be raised by 25% to 26.0% an additional $64.9 Billion would be realized.

    The largest AGI group is the $75,000 to $200,000 in annual income. In 2009 there were 24,986,000 filers paying $292.8 Billion in income taxes out a total AGI of $2,792 Billion. (Effective rate of 10.5%).

    A comparative chart is as follows utilizing the 2009 statistics:


    These three income groups account for 65% of the total Adjusted Gross Income recorded in the tax filings in 2009 and 84% of all income taxes paid.

    As the deficit in 2012 is estimated to be in excess of $1,100 Billion and near that amount again in 2013, there are simply no way raising income tax rates or eliminating so-called loop-holes for the "rich" will generate anyway near enough income even if one assumes no change in tax paying behavior. The other income groups are where the money is and that is the ultimate target of the current administration and the Left.

    Further, this is a consumer driven economy with consumer spending accounting for 70% of all economic activity, as the goods-producing sector (20% of GDP) has been greatly diminished and forced to move to other countries, thanks to regulations, mandates, taxes and an anti-capitalist mindset in Washington D.C. Virtually all the jobs created in the past ten years have been in the low paying service sector, further exacerbating the nation's economic woes and causing the income gap between the middle-class and the rich to widen as upward income mobility has been greatly hampered.

    In America's current economic structure, the top 20% of income earners in the United States account for 61% of all consumer spending. (This also puts to a lie the inane and absurd claim made by various Democrats that food stamps and unemployment insurance are the best way to help the economy as these payments spur economic growth. The bottom 80% of the working population accounts for only 39% of consumer spending). The reality is the more the higher income earners are forced to pay in taxes at the federal, state and local level the less will be available for spending and growing the economy.

    The Obama tactic of calling for more taxes on the rich is purely political, and intended to focus anger at the wealthy and to demagogue the Republicans. He and his party are desperate to avoid answering for their failed policies. It is the most crass and mendacious of tactics and one befitting a person with no character and integrity that he would pit Americans against Americans for his personal gain while further damaging the economy and the future of succeeding generations.

  • GQjock

    Posts: 11649

    Aug 21, 2011 12:21 PM GMT
    Sorry Con ......

    We all need to sacrifice to get this right ....... Right?
    Least that's what the republicans keep saying'
    We already did the sacrificing .....

    The LEAST the wealthy in this country can do is go back to the tax rate they were at when Clinton was in office

    That's the LEAST they can do when they are making more and hoarding more than anyone put together right now

  • Posted by a hidden member.
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    Aug 21, 2011 4:21 PM GMT
    The Corps./the Rich, Bank CEO's and Wall Street Gamblers, were all for cutting regulations so they could make more at much greater risk, they led the cheerleader squads for subsidizing / corporate welfare and taking our jobs overseas. Many of these cheered on the wars because they would benefit financially.


    Where in hell does jealousy come into this over their wealth ? These Wealthy decision makers have far more responsiblity for making the mess than the masses.