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Senate Plan Appears to Raise Taxes by About $2 Trillion

President Obama is about to pull off the biggest coup since a wooden horse with 30 Greek soldiers inside of it rolled into Troy.

Not only is he going to get a badly needed political boost by transforming himself overnight from a deficit increaser into a responsible, adult, deficit slasher, but he’s going to secure legislation from Congress that would raise taxes at least $2 trillion over ten years.

And Republicans are all set to go along!

The “Gang of Six” deficit reduction deal is being advertised as a $1.5 trillion tax cut. That’s how it will be sold. Well, it is on paper. But do you live on paper?

"Pay up, suckers!" photo by Keith Koffler

The $1.5 trillion tax cut is true only if you assume current law, which says that the Bush tax cuts are going to expire at the end of 2012 and the alternative minimum tax (AMT) will not be adjusted for inflation, as it routinely is every year, and that it will instead reach further into the middle class.

So let’s distinguish current law from current policy. Current policy is the taxes you pay now – including the Bush tax cut and an AMT that has been adjusted for inflation so that it hits fewer people.
Lets look at current law, under which taxes are already slated to go up.

Based on estimates I’ve seen from the Congressional Budget Office and the Congressional Research Service, I would put the ten year tax increase resulting from not renewing the Bush tax cuts – and letting all the rates rise – at about $2.8 trillion.

The tax increase that would occur were AMT not adjusted for inflation amounts to about $700 billion.

So adding the two together, current law states that taxes are going to increase by about $3.5 trillion.┬áThats what’s scheduled to happen to you.

The Gang of Six Plan estimates that it would cut taxes from current law by about $1.5 trillion. So now the current law increase would be only $2 trillion. And since that’s the new plan, that’s what you’ll get.

THIS PLAN WILL RESULT IN TAXES GOING UP BY $2 TRILLION. Is that what Republicans were sent to Washington to do???

Even House Majority Leader Eric Cantor (R-Va.), the supposed leader of the tax cutters, says he wants to take a look at this.

I assure you, between National Economic Council Director Gene Sperling, OMB Director Jack Lew, and Treasury Secretary Tim Geithner, Obama has some of the smartest liberal economists around. They know exactly what’s going on here.

My assumption is that Republicans who are falling into line behind this plan don’t. Or they expect you won’t figure it out.

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45 Responses to Senate Plan Appears to Raise Taxes by About $2 Trillion

  1. Every day I think what goes on in D.C. can’t get any more depressing, and every day I’m proven wrong. I’m almost ready to just lay back and enjoy it because there’s apparently nothing I can do to stop it.

    • Don’t give up now. We’re just starting this fight. I called my senators again today to ask them to bring Cut, Cap, and Balance up for a vote. They need to come up to the podium on the senate floor and tell us to our face why they are voting against allowing the people’s voice to be heard on the balanced budget amendment.

      • I keep a supply on hand because I knew in Jan 2009 things were not
        going to go well. Well no SS checks think of all the seniors unable to
        pay electric bill? And in the middle of dangerous and deadly heat
        wave. Would you want to be responsible for the ramifications of that?
        Obama doesn’t think any further than the next vote and seems no one
        else does either. On their heads be it and it ain’t gonna be pretty.

        • What abvout the autopays–the fines…no food, pets gnawing on us, foreclosure (my check is why I still have a roof), nursing homes and centers with no way to pay people. If these posturing twits hold up checks–it will be like taking the bottom can out of a HUGE pyramid of cans–this joint goes up. (Or down–anyhow, just do not do it.)

          • Someone at my sister’s gated community was crying over the SS–she owns the house, but has no other money but her late husband’s SS. Even I have been worried–bec I KNOW these people are so dense, removed, theatrical and egotistical, they might do something that completely horrible and stupid.

          • I doubt he does…My sister has coffee with this woman 5 mornings a week–she was crying. Heck, I was so upset Sun nite I could not sleep…I kept saying, “If they do this, and they are dopey enough, we lose the house…Mom’s SS is gone, who pays her caregivers, we can’t chip in, she can’t stay here bec of the animals..” On and on…My daughter kept saying, “They won’t, Mom, they won’t.” But to even threaten this is administrative malpractice to me! New cliche–let’s spread it!

          • Mr. Koffler,
            Has anyone in the ‘WH press corps’ ever ask what Barack Hussein Obama did as a “community organizer”?

            Heck… NO ONE is allowed to ask/see Obama’s “college records” so I am curious about his “community organizer” career records from Chicago… (or are we/’media’ not allowed to ask about that part of Barack Hussein Obama’s past also…?)

          • Guess they forgot about that odd because they are so smart and we are so stupid and uninformed. Thinking the stupid shoe is on the other foot.

  2. Another clear example of how our once exceptional country has fallen so far & so fast. These spineless washington operatives spend whole careers spinning/ lying their way through. From years of a heavy handed centralized govt., they have “dumbed down” large masses our country to the point of apathy, laziness and ignorance. Hopefully, when the masses actually SEE what this “hope & change” stranglehold is up to , there WILL be hope & change… but the “change” must come first.. 2012 is our time to set this right !

    A wicked society appoints wicked politicians
    who enact wicked laws to be enforced by a wicked government.

  3. I have faith in the House Republicans — not the leadership but the veteran and freshmen conservatives. They won’t raise taxes. Really wish someone would have challenged Boehner for the speakership. He was a proven failure as speaker under Bush and he continues to be a failure under Obama.

      • I’m going to add Mitch McConnell to that list too. He was a failure as Senate majority whip under Bush and he is a failure as the minority leader under Obama. I’ll also add Senator Kay Bailey Hutchison of Texas. She is retiring in 2012 and instead of going out with the approval and admiration of her constituents for doing the right thing, she is going to sell us out again. Payoff is probably some high level job working for the government in 2013.

        • I think we need a really strong tough and maybe a little bit mean
          person to man up or woman up and just let fly. Better yet let we
          the people get a chance to let Obama know how ‘stupid’ we are!
          I can bet you anyone on this blog could go one on one with him
          and come out on top! He doesn’t care about scaring seniors and
          that says a lot about him. Add to that the lifestyle Michelle leads
          with the costly clothes and trips they could care less if seniors
          eat. This is beyond belief how do they sleep?

  4. find me one member of the GOP House that is ‘going along” with this. The Senate republicans are meaningless … they will vote for whatever the House votes yes on …
    Its all about the Senate Dems … thats the game here … just because they will vote Yes is meaningless, it won’t pass the House … it won’t even be voted on by the House …

  5. When MrStupak died, the mantle of “MrLasVegas” must have passed to MrWynn. MrWynn’s remarks about the Obama administration “frightening” the business community could be extended to the population at large.

    The threats of dire consequences, of financial ruin to Americans and the prospect of global collapse if we don’t raise our debt ceiling and raise taxes was just that, threats, to make us accept the same spendthrift ways of Washington and a massive tax raise.
    We can protest, complain or just take to torches and pitchforks, but it won’t make any difference if our elected officials pass this financial burden on us.

    The community organizer/Chicago thug knew exactly what would happen if he threatened to withhold government checks to the most vulnerable among us. There must be no depth too low that this President wouldn’t go to achieve his goals.

    • It is not just Obama, it is all of the corrupt politicians in D.C. The cut and dry…Obama and his cronies are holding the elderly, disabled, and our veterans hostage until the House pays the ransom. Carter did it in 1979 and now Obama is doing it in 2011. Was listening to Rush today and he mentioned the same threats were made during the 1979 debt ceiling debate.

      From The Montreal Gazette, 3 Apr 79…
      “About $8 billion in Social Security cheques already had been mailed to 35 million Americans, Blumenthal said, and there would be no funds to cover them if the House failed to act. In addition, he said, the treasury would not be able to pay civil service retirement benefits, veterans benefits and railroad retirement benefits due for collection today.”

      Sound familiar?

      http://news.google.com/newspapers?id=DH4xAAAAIBAJ&sjid=4aEFAAAAIBAJ&pg=7253,4938880&dq=debt+ceiling&hl=en

      • Yes–familiar–but that does not mean this crowd won’t do it–they are reckless and cruel. To me, no offense, but Rush is not my north star.

        • I was commenting on where I heard it, not asking you to make him your north star. My point is their fear mongering is nothing new.

  6. More betrayal by the republicans. These guys are creating less and less distinction between themselves and the dim-ocrats all the time. Republicans are moving ever closer to extinction and creating more and more justification for a third party. When within their own caucus they do not perceive the frustration of the right-leaning electorate and see with their own eyes the character of the freshmen that we elected late last year, the only conclusions you can arrive at is that they are themselves wicked politicians cut from the same bolt of cloth as the folks who carry a “D” after their name, OR, they are simply stupid. Either way, more and more of them must be told at the ballot box that is it time to leave Washington.

    • The time for a viable third party was 30 years ago.

      Don’t worry, come next election, most Americans will still vote Democrat/Republican. If they vote at all. Once again, they will wonder why nothing ever changes.

  7. Seniors and veterans don’t take threats to their incomes lightly. If we survive till 2012 Washington hopefully see a lot of new faces.

  8. You forgot Obamacare tax increases – which are current law. They are not included in the gang of six plan. They are not included in your calculations. They take taxes into the stratosphere.
    This plans a no-go.

  9. I have tried to stay away from the news because the fear mongering is working on me.

    Keith you need to get this post linked to the Drudge, so people understand what the real deal is and start making the calls.

    Now that I have read Keith’s post, I am going back to burying my head in the sand.