Obama's "Millionaire Tax" Collected Over Next Ten Years Will Plug 4 Months Worth Of Deficit

Tyler Durden's picture

In order to keep the ongoing class warfare waged by the administration in perspective, today the CBO was kind enough to score the revenue impact of the proposed and much debated Buffett Tax, now appearing in non-populist literature as "Surtax on Millionaires." According to the Budget Office, said tax which is the source of substantial consternation among the population, would generate, over the next decade, a grand total of... drum roll... $453 billion. Why the drum roll? Because as we pointed out a few days ago, the US closed the 2011 fiscal year having added $1.23 trillion in debt (a number which would have been $1.4 trillion absent some year end settlement gimmickry). In other words, last year the US government had on average a $100+ billion deficit each month. In yet more other words, the great populist gimmick that is the Buffett Tax will have the great benefit of generating, between 2011 and 2021 enough money to plug a debt hole, at the rate America currently spends money, of 4 months.

From the CBO:

Dear Mr. Leader:

 

As you requested, CBO and the staff of the Joint Committee on Taxation (JCT) have estimated the budget impact of S. 1660, the American Jobs Act of 2011, as introduced in the Senate on October 5, 2011. CBO and JCT estimate that, in total, enacting S. 1660 would decrease deficits by about $6 billion over the 2012-2021 period (see enclosed table). That estimated deficit reduction of $6 billion over the coming decade is the net effect of $447 billion in additional spending and tax cuts in titles II through III and $453 billion in additional tax revenue from the surtax specified in title IV.

 

S. 1660 is similar to S. 1549, the American Jobs Act of 2011, as introduced in the Senate on September 13, 2011. Provisions in title I, II, and III related to both federal revenues and spending are identical for the two bills. The only difference between the bills is that S. 1660 replaces the provisions in title IV (Offsets) of S. 1549 with a surtax of 5.6 percent, starting in 2013, on a taxpayer’s modified adjusted gross income in excess of $1 million (or $500,000 in the case of a married individual filing a separate return), indexed for inflation. JCT estimates that title IV of S. 1660 would increase revenues by $453 billion over  the 2012-2021 period, whereas title IV of S. 1549 would increase revenues by $450 billion over that period.

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Bendromeda Strain's picture

Hamptons mortgage and Lear Jet gas...

DaveyJones's picture

now now that's what they want us to do

ReadySteadyGo's picture

I disagree; there are those of us who voted for him because he is exactly what we read him to be.  And, the opposition to him at the time was more extend-and-pretend lackeys.  I am well pleased that my vote actually was a force for good in getting the inevitable show on the road.

I firmly believe that if we don't manage to get Ron Paul in office AND Congress decides to un-fuck itself, that Obama should be re-elected.  If only to keep the shit rolling toward what I see as opportunity to finally fail in an epic way or to finally kill the fucking vampires and get back on track.

Just my 2 cents.

malek's picture

But, but, but... wouldn't Sarah Palin have been an even better choice for that? /sarc

sun tzu's picture

Do your part to crash the welfare state and starve the parasites. 

trav7777's picture

hahahaha..DIPSHIT.

Fast track to Argentina where the poor starved and the near rich got crushed but those with the political power increased their fortunes.

Crashing this state isn't going to eliminate any of the leeches you hate; it never did anywhere else that has crashed, except when a Hitler or Putin comes and forcibly removes them.

ReadySteadyGo's picture

I call you on this Trav.  Like I said, this party was going to end badly anyway, instead of making the death long slow and painful, let's get the reset on.  Whether you realize it or not, we're collectively fighting over an incremental slide over almost 100 years away from our starting principles.  Instead of being a coward and letting future generations take up the burden, let's do it now.

Besides, you say "never", and i say it happened at least once.  Here.

But, I'm willing to listen; to avoid the Argentenian scenario you describe above, what's your answer?

chindit13's picture

Bingo. The USSR and its KGB/GRU framework collapsed, and who came out on top?

The KGB (now FSB) and GRU apparatchiks.  A few were not willing to honor the Don-ski (Putin), and they were taken down.  Everybody else pays homage....and prospers.

Survival skills are transferable across systems.

ReadySteadyGo's picture

I see.  So, according to you and Trav, there's no hope, so we should just all lie down and die.  Or be happy with being a cog in a larger machine.

Fuck that.  It can be different.  I also think the catalysts here would be a hell of a lot different than in Argentina or the Soviet Union.

weinerdog43's picture

Do your part to crash the welfare state and starve the parasites.

 

Said the fascist keyblogger.  You wouldn't know about 'the welfare state' except for you mom's kitchen.

xavi1951's picture

Your two cents has cost this country billions.  Idiot!  Next time keep your two cents to yourself and I'll keep my millions!

ReadySteadyGo's picture

Uh, it was coming anyway.  But it's funny, all the responses here have solidified what I think is a lack of a longer view.  You really think McCain and Palin were the two to turn it around?  Seriously?

And as a 60-year old retired law enforcement officer, how'd you acquire millions?

swamp's picture

You're the fool if you think he doesn't know he's selling you out.

Shvanztanz's picture

Allow me to pontificate.

Being dedicated exclusively to the practice of taking, regardless of the mechanism that creates what there is to receive, I promise that if anyone has anything, I will take it, on the pretense of giving it to those who don't have it, though they will never receive it. 

But, since no one can tell how adept I am at stirring outrage, without any plan or intent to resolve it, I will continue to pour gasoline on the fire, because, after all, fireworks are preferable to the silence that precedes it. 

 

Bendromeda Strain's picture

"Please allow me to introduce myself..."

RmcAZ's picture

By my calculations, if they were taxed at 168% this budget deficit problem would be solved.

CaptFufflePants's picture

By my calculations if we lowrer the Clinton tax rate in 2001 it will create 10 millions jobs and completly pay off the debt by 2010...woops

cowdiddly's picture

With Debt At 99% of GDP taxing all 50 million tax payers 100% of everything they make will not create a surplus. GDP= Savings + Investment+ govt spending + Exports if I remember correctly

So let me add the appropriate Zeros that are applicable to our economy and you can easily see what we are left with.

Y = S(Savings) + I(Investment) + NX(Net Exports) + G(Govt spending)

Y= 0(YEA Right) + Investment + 0(Trade Deficit) + BERNANKE

Hope those Chinese dont pull the I or we only left with The HElo PilOt and Pentagon.

YEp cut the military spending and this folds like a house of cards, What's that Punk? You Look like A Mujahadeen terrorist boy. Se habla Raptor Sand Man? Move over to this line for a full TSA cavity search...... Its all we got.

This will not end well......................................... 

tmosley's picture

FYI, debt is at 99% of GDP, not the deficit.  Of course, the deficit is climbing FAST.

cowdiddly's picture

Um thats what I said (first 5 words)

Manthong's picture

Just raise the minimum wage to $ 500.00 an hour and raise the top bracket back to 90% .

That way everybody makes more than a million dollars and the debt will be paid off in no time,

That's such a simple liberal solution even Krugman could understand it.

Bendromeda Strain's picture

But what if the CME raises the margin on ink?

jcmjr's picture

Exports-Imports=Net Exports. This number has been negative for years and getting worse!

jekyll island's picture

Damn, I'm going to have to get another job

DaveyJones's picture

a million is a magic number. I have heard more than one person indicate that if you divide all our debts AND obligations they equal a million per taxpayer...in current dollars. That new jobs bill better kick some serious ass

bob_dabolina's picture

This was a great article I read 

"The Total Taxable Income for millionaires was $626,464,479,000 in 2009. So, if the Federal government taxed millionaires at a 100% tax rate, it would pay for 53.5% of the 2009 deficit."

"100% taxation is seizure of income by government. If the Feds seized all millionaire’s taxable income, it would barely pay for half of the deficit."

http://confoundedinterest.wordpress.com/2011/09/18/obamas-buffett-tax-seizing-100-of-millionaire-income-would-pay-only-half-of-deficit/

Put that in your pipe and smoke it

FilbertH's picture

They will only be able to do that once.

Get more of what you reward, less of what you punish.

bob_dabolina's picture

I highly doubt that would ever happen. The tax system isn't perfect, far from it, the Internal Revenue Code, is over 1 million words and is 7 times as long as the bible. It's clearly fucked up. 

The point is really to elucidate that the MAIN problem is spending. The government needs to stop fucking spending like a coked out whore.

jekyll island's picture

So THAT'S the difference between Heaven and Hell.

Tyler Durden's picture

Income yes. But as you may recall, and what is most certainly being prepared quietly, is a global tax on existing financial assets. There is $74 trillion in global financial assets and a $21 trillion funding hole: i.e. a 29% tax.

The question is will the rich pay 29% not to be the object of pitchforkian affection?

The other question is who will "buy" all these assets that have to be sold.

Once again, probably the one most important shadow policy presentation of the year is below. Everyone should read it.

BCG_Back_to_Mesopotamia_Sep_11[2]

bob_dabolina's picture

I have a family member who is a doctor in Fairfield County CT. After business tax, income tax, property tax for the home, property tax on the business, payroll tax, vehicle tax, etc over 45% of that persons income is going to taxes. Meanwhile 50% of Americans pay NO tax. You can imagine what that person thinks Buffet can do with his tax plan.

Think about that next time you're taking a shit.

Steaming_Wookie_Doo's picture

OK, let's be bi-partisan about this: we'll kill the non-taxpayers if you'll kill the richest ones. Oh, and be sure to confiscate all of those trusts as well. Do we really need the Ford Foundation in a post-taxation utopia? </sarc off>

bob_dabolina's picture

What I know is that the family member I am talking about went to school and was a resident into their early thirties. That person has worked extemely hard to make something of their life and doesn't appreciate that working 15 days a month before seeing personal income. Now the government wants more and my family member is pissed.

Don't forget most of the rich didn't start that way. I know a guy who started off in poverty, had a father that abandoned the family, a mother that could barely afford to feed him. He dropped out of college and started a business out of his garage. His name is Steve Jobs and he became the 42nd wealthiest person in America.

weinerdog43's picture

Don't forget most of the rich didn't start that way.

 

Bullshit.  Yes they did.  Paris Hilton anyone. 

au_bayitch's picture

Bob, you only accounted for the taxes. When the required insurances are added, it will be well over 50%. Someone with a prescription pad will never go hungry but can still go broke.

DaveyJones's picture

just issue more credit. that always works

Zero Govt's picture

Cheers Tyler... why is this unreadable pile of bollocks a 'must read' for everyone/anyone?

It proffers the idiocy of the one great solution for the global economy (could the retards of the Boston Consulting Group even identify the world economy let alone find a friggin answer to it???)

The answer to the collosal problems faced by the world is for each and its own to sort their own problems out. It's called individualism. It-s how nature works. Individual animals sort their own shit out on an individual basis, there is no collective animal Govt with a myriad of moronic consultants you see 

As soon as I become "we" like a society or a Govt institution that's where all the problems begin. Because nobody can represent me, the politicians cannot even sort their own Departmental problems out, what chance an amalgam of the worlds???

The Boston Consulting Group are loonies, fully certified globalist fruit cakes... as is the entire political establishments of the Eastern and Western Worlds.. sooner these collectives of retards and tripping academics fall on their swords and all the hanger-on crones (consultants like BCG) the better.

Let me repeat, there is no:

we

us

society

nation State

national or global economy/anything

stop living in a fantasy world of 'we' and 'us' ....they (we/us) do not exist... these collectivist retards can barely represent themselves properly (sanely) let alone a collection of other beings ...all fruit cakes please fuk off and make for the Exits NOW ..Thank you for making my life simpler 

 

Tyler Durden's picture

Because it tells you plainly what is coming and what to prepare for.... Unless something changes of course.

Zero Govt's picture

Boston Loony Group are talking about collective problems ...i have no collective problem and cannot prepare collectively

I am an individual and prepare my personal space

the Boston retards can try to prepare the world, I suggest they get a fuking large megaphone to try to co-ordinate it (if anybody is actually is listening on the day!) and a board to slap over their shoulders, the end of the world is nye... like every other village idiot fruit cake they've taken up the mantra of

Shameful's picture

If that is indeed what is to come down the pipe, then looks like buying physical and having a "boating accident" is indeed the best result.  Even if prices go down will escape the initial pillage.  Though the repercussions of such a wealth tax would be staggering, since it would in effect force people in the future to try to keep their wealth as hidden as possibly for fear of future confiscation.  After all if the politicians looted them once with limited blow back odds are they would do it again, and again.

nmewn's picture

"...then looks like buying physical and having a "boating accident" is indeed the best result..."

And it never hurts to have multiple clean ID's for the local gendarmes ;-)

centerline's picture

I think the article is fatally flawed in several key areas.

First, it is firmly rooted in attempting to maintain the now failed MMT paradigm of perpetual growth.

Second, it fails to address how the aging baby boomer population and numerous other people living on any form of assistance would not be wiped out (literally).

Finally, it does not all address growing resource scarcity issues (peak oil anyone?).

Let me add some more fuel to fire by mentioning the mounting student debt problem... crony capitalism that must be purged for real sustainable economies to once again develop... China... other developing countries and corresponding wage arbitrage... etc.

Now, this does not necessarily mean that TPTB are not going to attempt to make this happen.  And I certainly am hesitant to plant my feet on the opposite of a bet from Tyler(s) on this stuff.  Just saying that it is not going to work.  At some point it will fail and social unrest will be the outcome, followed most likely by some sort of police state and a Soviet style collapse.

 

Thunder Dome's picture

Better solution is torching $ and paying back global debt with confetti money.

Zero Govt's picture

Shvanztranz,   "What is the point...?"

Let me repeat my point thrice and a fourth time hopefully it will sinketh in at some point!

The collective DOES NOT FUKING EXIST ..got it this time?

The "we" and the "society" and the nation State is a figment of academics, politicians and the gullible (pretty much 99% of society that has had a State education).

Our world is drowning in bullshit. The bullshit of "we" and "us" and our "society". Like the statistical fantasy construct that is the average man, this is an academic pile of twaddle that does not exist 

"We" only exists as an "I". You cannot represent me, nor my family. Nor can a charlatan like a politician. That's where all our problems begin (and ultimately end).

Nature is a free flowing collection of a zillion individual beings. If a volcano blows the animals all individually make their own exit plan, they all make for the hills fast as they can. But Hollywood, academics and politicians have spent their entire time creating a fantasyland, telling us a big fuking lie "we" exist as a "society", as a "nation" that needs to be saved, as a "community" that needs to be improved (by them). A pure fantasy leaders will collect us together and make a plan for us. Bullshit they will. Leaders first and formost look after No.1 and that's what all of us should do. Forgt other people saving our community, look after yourself and let the bullshit constructs go hang. Because there is no collective society, only individualism, it's the only reality that exists

There are no institutions representing us like Govt. They represent themselves (only). Politicians do not represent us, never have, never will. The institutions like the nation state are a false folly, an academic liberal construct, a political LaLa Land.. they are all unremitting bollocks

You want to wait for the President to tell you your local nuclear reactor is blowing up? Good luck. Anyone with any individual nouse will high tale it on their own instinct (see Fukinshambles Japan). You want to solve "global problems". Go fuking do it yourself and leave me out of your insane twaddle

Our world is being drowned in the bullshiut of collective problems that do not exist and being solved by collective institutions that are twats that need a Doctor more than another free taxpayer lunch. Bullshit one and all. 

Like nature deal with your own problems, the rest of the world can sort itself out. The insane collectives (fantasy lands) like Govt, let them collectively go down their own insane toilet collectively. One day they'll wake up their collective problem did not exist like their collective institution (represented nobody at all). The real problem was they were individually idiots

Govt does not exist. The nation state does not exist. They are all fantasies, man made constructs, mental problems, academic problems of castles made in the sky and 'poof' they disappear just as quickly

Throw real money at a fantasy construct called the "EU" ...see how fast it disappears into thin air

Shvanztanz's picture

Zero G: Yes to everything you said. My only point is that what you are saying is Leviathan from 400 years ago. Alright, I was trying to be a dick, in college Professor form, boil it down, what's the fucking point. What are you saying that's any more distinct or precise than anything else I've read here. If I wanted to read Deacon Sadler books, I'd be on Amazon, adding digits to consumer debt. 

 

AustriAnnie's picture

"why is this unreadable pile of bollocks a 'must read' for everyone/anyone?


It proffers the idiocy of the one great solution for the global economy "

You answered your own question.  Its a must read because the solution that will be chosen will be idiotic.  And it will affect you, as an individual, if you don't prepare for the possibility that many other individuals will use their "collective" solutions to f*#k you in the ass, and the whole time you'll be saying they are nothing but a fantasy.  

"Throw real money at a fantasy construct called the EU....see how fast it disappears into thin air"

That would be YOUR money, that disappears, darlin, unless you get to know your enemy and protect yourself.

saiybat's picture

There's so much wisdom in your post. I concur completely. 

The_Nihilist's picture

We are all on this rock together. That is what we have in common, not to mentioon we are of the same species. Yes we made up all these hierarchal system and they are all just figments of our imagintations. BUT we are all HUMAN beings, we need food, water, shelter and sex collectivly. We won't make it off this rock if we keep thinking we are on this Earth by our selves. We need to come together as a species and find a way off this rock instead of this bullshit every man for himself which will just lead us into more war, famine and bullshit of it's only about me, fuck the other guy. We won't make is as a species if you keep believing the human race does not have the same problems which we clearly do. We are running low on resources fast, we need to find a way to solve this. We cannot do it individually, we are a social speices that is why we TALK to eachother like here on the Internet. Fine lets say fuck it, fuck everyone but me and my family. I guaranty you won't make it very far. This is why I am a Nihilist, you fucks aren't going to make it no where and niether are your kids. The human race is fucked if it can't come together and realize we are all one. Fucks like this guy that can't work with others are doomed to faliure.