Obama Proposes $418 Billion in Tax Hikes
4:41 PM, Jun 30, 2011 • By JOHN MCCORMACK
The president talked an awful lot yesterday at his press conference about ending tax breaks for corporate jets, but closing that tax break would only amount to $3 billion over 10 years. That's 0.7% of all tax increases he desires over the next 10 years as part of a deal to raise the debt limit. Or, as Charles Krauthammer put it: "If you collect the corporate jet tax every year for the next 5,000 years, you will cover one year of the debt that Obama has run up. One year."
In case you're wondering how Obama comes up with the other 99.3% of tax increases, ABC's Jake Tapper breaks down the $418 billion in proposed increases, according to Democratic sources:
So almost three-fourths of the tax hikes Obama wants come from reducing deductions for those making more than $200,000 per year. That's what the real tax debate is about.
Republicans do, in fact, want to reduce or eliminate deductions, but only if those reductions are paired with lowering all of the tax rates. Republicans argue that revenue-neutral tax reform would create a fairer, flatter, more competitive tax system.
President Obama simply wants to raise tax revenue by reducing deductions for those making more than $200,000 per year without lowering rates. Republicans aren't biting, as ABC's Tapper reports. But Democratic officials tell him there's a "basic framework" for cutting spending by $1.4 trillion:
Recent Blog Posts