Right-Wing Lie of the Day: Obama Raised Taxes

by Ben Hoffman

Right-wingers have been claiming that Obama has raised our taxes. When you call them on it, they change their whine to “well, he’s going to raise taxes.” Actually, Obama has cut taxes: 288 billion dollars worth of taxes. Those tax cuts were part of the Stimulus Bill that right-wingers claim have not created any jobs. They complain that Obama should have cut taxes and THAT will stimulate the economy. The tax cuts went into effect almost immediately after the American Recovery and Reinvestment Act passed.

Here is a breakdown of the Obama tax cuts:

Tax cuts for individuals

Total: $237 billion

* $116 billion: New payroll tax credit of $400 per worker and $800 per couple in 2009 and 2010. Phaseout begins at $75,000 for individuals and $150,000 for joint filers.[27]
* $70 billion: Alternative minimum tax: a one year increase in AMT floor to $70,950 for joint filers for 2009.[27]
* $15 billion: Expansion of child tax credit: A $1,000 credit to more families (even those that do not make enough money to pay income taxes).
* $14 billion: Expanded college credit to provide a $2,500 expanded tax credit for college tuition and related expenses for 2009 and 2010. The credit is phased out for couples making more than $160,000.
* $6.6 billion: Homebuyer credit: $8,000 refundable credit for all homes bought between 1/1/2009 and 12/1/2009 and repayment provision repealed for homes purchased in 2009 and held more than three years. This only applies to first-time homebuyers.[39]
* $4.7 billion: Excluding from taxation the first $2,400 a person receives in unemployment compensation benefits in 2009.
* $4.7 billion: Expanded earned income tax credit to increase the earned income tax credit — which provides money to low income workers — for families with at least three children.
* $4.3 billion: Home energy credit to provide an expanded credit to homeowners who make their homes more energy-efficient in 2009 and 2010. Homeowners could recoup 30 percent of the cost up to $1,500 of numerous projects, such as installing energy-efficient windows, doors, furnaces and air conditioners.
* $1.7 billion: for deduction of sales tax from car purchases, not interest payments phased out for incomes above $250,000.

Tax cuts for companies

Total: $51 billion

* $15 billion: Allowing companies to use current losses to offset profits made in the previous five years, instead of two, making them eligible for tax refunds.
* $13 billion: to extend tax credits for renewable energy production (until 2014).
* $11 billion: Government contractors: Repeal a law that takes effect in 2012, requiring government agencies to withhold three percent of payments to contractors to help ensure they pay their tax bills. Repealing the law would cost $11 billion over 10 years, in part because the government could not earn interest by holding the money throughout the year.
* $7 billion: Repeal bank credit: Repeal a Treasury provision that allowed firms that buy money-losing banks to use more of the losses as tax credits to offset the profits of the merged banks for tax purposes. The change would increase taxes on the merged banks by $7 billion over 10 years.
* $5 billion: Bonus depreciation which extends a provision allowing businesses buying equipment such as computers to speed up its depreciation through 2009.

Source

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16 Comments to “Right-Wing Lie of the Day: Obama Raised Taxes”

  1. I thought Democrats hated tax cuts. Tax cuts caused the economic meltdown, according to you and yours. Tax cuts don’t work, that’s what you guys always say. So why would President Obama give us tax cuts? It just does not make any sense. I just don’t believe what I read.

      • Ideologically blinkered perhaps, but not crazy. Alan seems to grasp at least the basics of civil discussion, if not debate.

        From the right-wing crazy I’ve seen that is present on the internet, relatively speaking, Mr.Scott is remarkably coherent.

      • Sure, but relatively speaking, David Berkowitz is sane compared to Jeffrey Dahmer. :)

        See, Alan just has these strawmen in his head that come out in every discussion. The topic for this thread is Obama cutting taxes. From that, the strawmen are “Democrats hate tax cuts” and “tax cuts caused the economic meltdown.” Nobody has made those claims.

        Why did Obama cut taxes? It was purely political. He cut taxes to get elected. Tax cuts do very little to stimulate the economy.

  2. You are just not seeing taxation in the correct light. Taxes = Stealing from *ME* is roughly the construct to assume when dealing with certain reactionary elements.

    This view is fairly far from reality, as most reactionary dogma is. Taxes are necessary for the state to function to provide the framework in which civilization can function.

    I for one subscribe to a progressive system of taxation; because I make more I can afford to pay more. It is not a disincentive, but rather a commitment to a more just, egalitarian society.

    • Taxes are necessary for the state to function to provide the framework in which civilization can function.

      This is not a tax that provides framework:

      New payroll tax credit of $400 per worker and $800 per couple in 2009 and 2010.

      That is just Obama giving away money to people by taking it from other people. There is no “allowing civilization to function” going on there.

  3. The Arbourist,

    You are very kind. Though I love tweaking Mr. Hoffman, I am serious in my arguments. I argue details and facts. If anyone can disprove what I say, I am more than willing to admit it, but just saying that I’m crazy and my ideas are stupid, has not proved me wrong.

    I admit to a point of laziness. I just do not believe in Obama’s tax cuts. From what I know of his thinking, it is not logical. I attacked the statement the way I did because for the moment I lack the time to go line by and verify Mr. Hoffman’s words. And when it comes to anything about Obama you have to do that.

  4. Mr. Hoffman,

    “You don’t believe Obama cut taxes?”

    No I don’t. He ran for President against the Bush tax cuts. If he did cut a few taxes, I am sure the he raised others that more than compensated. I just have not had the time to check your claims,,yet. Maybe he raised taxes and called them “Fees”. I know that there is no way for him, Pelosi, and Reid to pay for health-care, climate change, and their massive pork barrel spending without raising somebody’s taxes.

    I keep telling you that there ain’t enough rich people to tax, to pay for all of this. Ask your Liberal friends in California and New York State. They’ve tried.

    Oh by the way, the last I heard Medicare had unfunded liabilities of $38 trillion. http://online.wsj.com/article/SB124268737705832167.html

    What are your heroes, Barak, Nancy, and Harry doing about that? Just put more people on Medicare.

    That’s what happens with all of your Socialist programs. Underfunded, over budget, and unaffordable.

    We have not even touched on Social Security. Remember how Bush tried to fix that one and you guys stopped him, even though he was in charge? How you guys going to pay for that?

    Questions, questions. You guys will just do as always. Borrow the money and push it off until tomorrow.

  5. Mr. Hoffman,

    I’ve just started checking on your guy Obama raising or cutting taxes. Right off the bat I found that he raised excise taxes on smokers. A lot of them are the poor and down trodden that you and Obama claim to be for.

    I realize that smokers have to be demonized almost as much as Republicans, but this is another example of taking money from the unwilling to redistribute to another group.

    • [Right off the bat I found that he raised excise taxes on smokers.]

      You just found out about that? Maybe you should follow the news a little more closely. That’s old news.

      Let’s see… what are your strawmen for the day…

      1. He ran for President against the Bush tax cuts. (no he didn’t)
      2. If he did cut a few taxes, (Obama ran on a platform that consisted of big tax cuts. Those cuts are listed in the OP)
      3. I am sure the he raised others that more than compensated. (that’s because you’re brainwashed)
      4. I know that there is no way for him, Pelosi, and Reid to pay for health-care, climate change, and their massive pork barrel spending without raising somebody’s taxes. (they’ve never denied that they’re going to raise taxes)
      5. What are your heroes, Barak, Nancy, and Harry doing about that? (those are not my heroes)
      6. We have not even touched on Social Security. Remember how Bush tried to fix that one and you guys stopped him, even though he was in charge? (That’s a lie. Bush tried to destroy SS)
      7. You guys will just do as always. Borrow the money and push it off until tomorrow. (actually, some 80% of the federal debt is the result of Reagan’s and Bush’s borrow and spend policies)
      9. I realize that smokers have to be demonized almost as much as Republicans (smokers aren’t demonized. They’re just being charged in advance for their cancer treatment)

  6. You forgot:
    1. 40% excise tax on health coverage in excess of $8,500/$23,000 ($149.1 billion)
    2. Employer W-2 reporting of value of health (negligible revenue effect)
    3. Conform definition of medical expenses ($5.0 billion)
    4. Increase penalty for nonqualified health savings account distributions to 20% ($1.3 billion)
    5. Limit health flexible spending arrangements in cafeteria plans to $2,500 ($14.6 billion)
    6. Require information reporting on payments to corporations ($17.1 billion)
    7. Additional requirements for section 501(c)(3) hospitals (negligible revenue effects)
    8. Impose annual fee on manufacturers & importers of branded drugs ($22.2 billion)
    9. Impose annual fee on manufacturers & importers of medical devices ($19.3 billion)
    10. Impose annual fee on health insurance providers ($60.4 billion)
    11. Study and report of effect on veterans health care (no revenue effect)
    12. Eliminate deduction for expenses allocable to Medicare Part D subsidy ($5.4 billion)
    13. Raise 7.5% AGI floor on medical expenses deduction to 10% ($15.2 billion)
    14. $500,000 deduction limitation on taxable year remuneration to health insurance officials ($0.6 billion)
    15. Additional 0.5% hospital insurance tax on wages > $200,000 ($250,000 joint) ($53.8 billion)
    16. Modification of section 833 treatment of certain health organizations ($0.4 billion)
    17. Impose 5% excise tax on cosmetic surgery ($5.8 billion)
    = $370.2 Billion

    And that’s just a partial list.
    • 40 percent excise tax on health insurance providers that offer high cost health insurance plans. This provision raises $149 billion in taxes and will be paid for in large part through higher income and payroll taxes. By the time this bill is fully implemented, 84 percent of this tax on “high cost plans” will be paid by Americans who earn less than $200,000.

    • New taxes on health insurance providers and medical device manufacturers. According to both the non-partisan Congressional Budget Office and Joint Committee on Taxation these taxes will be passed on to consumers in the form of higher insurance premiums. The new $60 billion tax on health insurance providers alone could raise premiums by as much as 2 percent as early as next year. The $19.3 billion in new taxes on medical devices could increase costs for up to 80,000 medical products such as heart stints, blood pressure monitors, eyeglasses, pacemakers, hearing aids, and advanced diagnostic equipment.

    • The floor for deducting medical expenses from income tax is raised from 7.5 percent to 10 percent of adjusted gross income. Those who take this deduction are most often seniors and those with serious or catastrophic medical issues.

    For a family of four earning $57,000 in 2013, raising the floor for the deduction means that they would lose a tax deduction of $1,425. A family of four earning $92,000 would lose a tax deduction of $2,300.

    • Raises taxes for the more than 35 million Americans who participate in Flexible Spending Accounts, or FSAs. For the first time, the government caps the amount a FSA participant can set aside to pay for health care expenses at $2,500. The typical worker who contributes more than $2,500 to their FSA has a serious medical condition. This means that under this bill, workers with serious illness and earning an average of $55,000 will be paying more in taxes.
    Roberts also pointed to an analysis by the non-partisan Joint Committee on Taxation that determined how four tax provisions in the bill, including the deduction for medical expenses and the high cost plans tax will affect Americans:

    • When this bill is in full effect, on average, individuals making over $50,000 and families making over $75,000 would see their taxes go up.

    • After accounting for the premium tax credit – the subsidy – that the government will provide to help people offset the cost of health insurance, more than 42 million individuals and families, or 25 percent – one quarter– of all tax returns under $200,000 will, on average, see their taxes go up.

    “Paying for health care on the backs of middle class, working Americans is the wrong solution for health care and violates the President’s promise to these taxpayers.
    “All Americans, and middle class taxpayers especially, need to take notice of what these higher taxes will mean for them and their families,” Roberts said. “They need to know that these taxes will be used to help pay for a vast expansion of the role of government in health care and more government intrusion into families’ health care choices.”

    Senator Roberts is a member of the Senate Committee on Finance, and the Senate Committee on Health, Education, Labor and Pensions. He is Co-Chairman of the Senate Rural Health Caucus.

  7. Mr. Hoffman,

    I have to thank you. When ever I run short of material, you provide it. I don’t know where to start and can’t answer everything, so let’s start with your last point, No. 9 .

    “(smokers aren’t demonized. They’re just being charged in advance for their cancer treatment)”

    I am almost afraid to touch that one for fear of not doing you justice. I suppose we should charge everyone in advance for everything that might happen. You Liberals should be taxed in to bankruptcy when you are born, because of all of the harm we know you will do in your lifetimes.

    Also what you stated is a lie. Is that too frank? Well let me explain. If the smokers were taxed in advance for their cancer treatments, the money would go in to a lock box ( remember Al Gore and SS lock boxes ). That money is used for every Liberal tax and spend vote buying piece of crap.

    Second point. I contend that smokers cost less money in health care than non smokers. Even with their health problems smokers die sooner and therefore cost less in the long run. Us non smokers won’t die. Since old people cost the most money, and non smokers are the biggest part of the really old, smokers are really paying the freight for everyone else.

    No I’m not crazy, just right.

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