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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jekyll island's picture

Well, that's it then.  The EU is fucked and there is a shitstorm coming.  Need to have your personal assets where you can put them in your pocket and run if TPTB try to rape the population and quite frankly what would stop them?  

DosZap's picture

jekyll island,

Need to have your personal assets where you can put them in your pocket and run if TPTB try to rape the population and quite frankly what would stop them?  

We would.............................bank it.

treemagnet's picture

I did as you suggested.  Very alarming as first, but as it marinates, it just gets...sorta, surreal - only cause something has to happen and like electricity it'll follow the path of least of resistance.  Question is, how will the top 1% plan on getting paid back.....with usury interest.

saiybat's picture

Holy shit. This is fucking terrifying. Total centralization of the global financial system then reprivatization. We already know who is going to buy that debt. Back to Babylon, a little nudge and wink for the insiders, huh? Here's to the New World Order staring right at us and no one seems to care.

Motley Fool's picture

Here is a simpler proposal. Put a 25% flat tax on everyone's income. That will cover the deficit. Let's so What happens to people's opinion on spending and the tax rate then.

Zero Govt's picture

you mean we've got 120 taxes on everything which hasn't sorted the problem out... and 1 more tax, or adding 25% to existing taxes, is really gonna be the winner right?!!!

how about (i know 'insane' idea coming..) the more taxes we add, the more problems we have? 

you know, like the more Laws we add (the mushroom cloud explosion in legislation over the past 10 years) also equates to the mushroom cloud of problems we seem to be getting

and you know like the more Govt we get, the more problems we get too

and the more Police and police-like new agencies we get to protect our freedom and make us more secure, the more freedom we lose

...just a thought we try the exact fuking opposite for a change...

Zero Govt = Zero Problems

jekyll island's picture

The beast was created by 7 men meeting in secret on Jekyll Island in 1910, it's first breath was in 1913.  It was turned loose on the world's population 60 years later when Nixon closed the gold window, breaking it's final chain with the default on silver backed FRN$. After 40 years we can see the destruction it has caused.  The solution?  Slay the beast, pull the charter of the Federal Reserve and return to a gold standard.  The governments of the last half century could not have come to pass without the central banks.  End the greed, End the fed.  

Motley Fool's picture

I should have added : remove all other taxes and loopholes.

SRV - ES339's picture

Zero Govt = Zero Problems

... less govt created this mess, irrespective of what Faux News tells you

Mentaliusanything's picture

Something from my childhood.... about the goose that laid the Golden Egg... comes to mind.

No really they have so buried us in Debt from Wars bad (bribed) decisions that it is no longer possible to see blue sky. It going to hurt and its going to be a Tectonic shift and its unavoidable despite the swarking of MSM

topcallingtroll's picture

No no no!

We will make the children pay.
Who cares what they think. They dont vote.

sun tzu's picture

What makes you think the children will pay?

Sequitur's picture

Got to start somewhere, and $400+ billion is a good start. Bottom line, Bush tax cuts were an abomination and Obama was stupid and got outplayed in agreeing to extend them. (Yes, much cutting needs to be done, end the wars, cut the DOE, I know I know, but this won't be enough.)

Beam Me Up Scotty's picture

Bush tax cuts aren't the problem.  Its the spending that is going up exponentially that is the problem.

Au_Ag_CuPbCu's picture

Exactly, California thinks it has a revenue problem.  Go figure.

Zero Govt's picture

asking progressive loony strangled-to-death California to "Go Figure" is about as realistic as voting in a Marxist President and expecting him to cut deficit spending, solve the socialist healthcare, pensions  and welfare bankruptcy issues and sorting out socialised Wall Street toxic wasteland, US housing

'democracy' is another word for letting the repeat-offending-loons in society vote for continued insanity ..it's the majority non-voting block that are sane for thinking correctly "nothing ever changes" 

there's only 1 vote these sane non-voters can cast to change anything: Refuse to Pay Govt Taxes

Zero Tax = Zero Govt

krispkritter's picture

Oh look! MillionDollarDumbass reborn! would you please find a wood chipper to fall into sometime soon. Thanks!

toady's picture

No, we don't need to 'start somewhere'.

If I have learned anything from politics its never start anything.

This article, for example, says some recent idea won't work, so don't do it.

The other side will have an 'opposing' idea, and someone will say that won't work, so it won't be done.

Whats the worst that could happen? Surely if we never do anything nothing could go wrong, right?

Just say no.

Beam Me Up Scotty's picture

Thats how big this monster we call government has become.  Soon, it will devour the productivity of every single american and there will be nothing left over.  Too many parasites.

topcallingtroll's picture

Yeah, but at least the socialist abomination ends at that point. Have the ability and means to go Galt when the tax levels and productivity barriets become ludicrous.

Better yet, the productive types can go overseas and renounce our citizenship or never declare more than 70,000 in income a year. The IRS doesnt have the ability to independently verify my overseas income anyway. I will just forge receipts in a foreign language and deal in cash.

South america beckons. There is still liberty there. They have some of the lowest tax collection rate of any place where you can still drink the water most of the time.

Shameful's picture

No it doesn't end there.  As we can clearly see form history it can carry on, all that is needed is mass murder.  People will not work for nothing, unless you murder segments of the population en mass.  Oddly enough the threat of death is a great motivator for at least some productivity.  And a reign of terror can go on far longer then most would expect.  If the central gov says we need a new railway system then it will be built even if thousands must die to motivate them to build it.

sun tzu's picture

Mass murder won't work so well in a country with 100 million gunowners. I suppose they could go nuclear on us

Shameful's picture

Better then you would think.  I'm no think tank egg head but I myself see several scenarios in which to either disarm the US population, or to in effect use their guns against them.  After all in a limited rolling breakdown situation the cities would in effect burn themselves out via looting and random violence, and the Fed could offer aid but only in exchange for total disarmament to provide safety for the relief workers.  which on it's face would sound reasonable to most, especially in the wake of violence and mass media coverage of evil gun owners.  At that point yes guns would be out there but guns are of limited use against the current gen of weapons that could be used to terrorize the masses.  In addition simply by choking off ammo and providing HUGE bounties on gun owners it would drive it enough underground as to be almost a non factor.  I'm sure Rand has done a study.

 

Need it play out that way, no, but it's not the bulwark that you might think it is.  It is a hurdle to be overcome, but not an insurmountable one by any means.

Jeff Lebowski's picture

Would this railway be built with Rearden Metal?

treemagnet's picture

Lets tax food stamps cause sales are exploding!  Just a percent or two at first, then later maybe more - because it turns out....people gotta eat so demand won't be affected!  Its like, shovel ready.

<sarc on>

Motley Fool's picture

100% taxes for all. Government paradise soon to follow!

Zero Govt's picture

at a point before 100% tax the private sector fuks off ...at that point Govt (the parasite) is fuked (has no host)

bring on that point, i think it's almost there (in Europe, in Japan and in the US) anyways

Motley Fool's picture

I forgot my sarcasm flag. :P

Panafrican Funktron Robot's picture

So basically, more spending in 2012.  And there will probably be a provision in there where this has to be reauthorized yearly.  So, net, we're talking more money down the hole, and no meaningful taxation on millionaires.  Good times. 

DosZap's picture

Panarican Funk,

And there will probably be a provision in there where this has to be reauthorized yearly.

Yeah, and since WHEN do they(FED) ask, or get authoization from ANYONE to do what they have done?.

Like Trillion dollar gimmes to EU BANKS?

Did any one here SEE that DEBATED?.

ali-ali-al-qomfri's picture

wait Romney said "..Corporations are people too.."

then we should expect a huge increase and maybe get 6 months or more out of it via GE/Exxon/BP/..add your favorite tax dodging/shielded person/entity/corporation

sun tzu's picture

Don't forget GE, Google and Solyndra taking government money and not paying taxes

loveyajimbo's picture

Oh, mama! really has his head up his corny.. desperation has a bad smell... but Mitt or Perry?? Come on!  Paul is the only hope, but the big boyz will swat him, one way or the other...

 

China has stolen our technology and has captured our jobs the corporate crooks were willing to send over, so the fair thing to do is an outright default of all of our debt to China.

 

Solly, Cholly!!    ;-)

Fips_OnTheSpot's picture

4trn in 10years "war on terror" - cut THAT for a beginning

pacdm's picture

a little here a little there might keep the boat a flout.

kinganuthin's picture

wtf is a flout??  nm i looked it up.. I do not think that word means what you think it means.

adr's picture

If the US defaults on its debt that saves $457 billion a year in interest payments.

If the US cuts out Social Security, Medicare, and Welfare that saves a little over $1 trillion.

By cutting all the other needless government programs and offices we would save another $500 billion or so.

I'm sure by eliminating all those services we would eliminate at least 75% of government waste so there is another $250 billion+ in savings.

 

There I fixed the budget problem. Wow we would actually have a surplus so everyone could get a 25% tax break and the government would still have enough. We don't have a revenue or taxation problem, we have a spending problem.

I'll let grandma move in with me. She's a much better cook than my wife.

topcallingtroll's picture

We could cut the military in half too. We dont need an empire.

sun tzu's picture

We can cut more than half from the department of war budget

toady's picture

I know about 40 grandma's and grandpa's down at the assisted living center that will be looking for a place to stay after your cuts.

Can they live with you too?

topcallingtroll's picture

Each county used to have a poorhouse for people who didnt have family to take them in.

Lets bring back local solutions and let each county decide how they will provide welfare services ( assisted living, transfer payments, etc)

toady's picture

Halliburton will charge trillions to set up those poorhouses (no bid contract).

catacl1sm's picture

They aren't grandma's or grandpa's without children, so let their children take care of them. If, through no fault of their own, they no longer have children or family, then SS should help them out, which is what it orignally was intended for, not a fucking retirement system. Good Grief. History bitchez.

topcallingtroll's picture

The socialist party has found their wedge issue.

With half of families paying no income tax and half of families being benificiaries of transfer payments of some type this is a losing issue for republicans.

I say accept this silly five percent tax and wrap it into a bill putting hard lumits on federal spending at 17 percent of gdp. Let the democrats be the ones to obstruct reform. Dont fall into their trap and oppose the tax outright.

Stuck on Zero's picture

By the Author's logic: If have $100,000 in the bank and you save $1000 a month it's only 1%.  Therefore don't save.

cowdiddly's picture

"You looking for a job sonny"? Lloyd Blankinfeld

Gyro Gearloose's picture

Maybe we're looking a this the wrong way?

Inflation will probably even make welfare recipients millionares by 2021.