Category Archives: Deficit

CBO raises 2014 budget deficit by 14 billion, Lowers GDP from 3.1 to 1.5 percent, Red ink to rise in coming years if Washington doesn’t change current laws, Lower tax revenue

CBO raises 2014 budget deficit by 14 billion, Lowers GDP from 3.1 to 1.5 percent, Red ink to rise in coming years if Washington doesn’t change current laws, Lower tax revenue

“The number of people receiving health coverage through public exchanges under President Obama’s health-care overhaul will total roughly 25 million by 2018, will add more than $1 trillion to the federal deficit over the next decade and could very well create a small contingent of workers unwilling to work for fear of losing federal medical aid.”
“One of the CBO’s most intriguing estimates is that by 2017 there will be 2 million fewer full-time jobs on the market than there would have been without Obamacare, and that figure could climb to 2.5 million by 2024.”…Market Watch February 4, 2014

“What do you think a stimulus is? It’s spending – that’s the whole point! Seriously.”…Barack Obama

 

“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″

 

 

From Market Watch August 27, 2014.

“CBO forecasts $506 billion budget deficit for 2014”
“The Congressional Budget Office on Wednesday raised its estimate of the federal government’s budget deficit for the current fiscal year as it slashed its growth forecast, and warned red ink was due to rise in coming years if Washington doesn’t change current laws.

In an update of budget and economic projections for 2014 to 2024, the nonpartisan CBO said the U.S. government’s deficit for fiscal 2014 will be $506 billion, or 2.9% of gross domestic product. The new estimate is $14 billion more than the agency’s prior estimate for the year, issued in April.

The new estimate is largely a result of lower-than-expected revenues for the year — particularly receipts of corporate taxes. CBO now estimates that all revenues will be 0.9% below its projection in April. Corporate tax revenues will be $315 billion in 2014, compared to a prior estimate of $351 billion, CBO said.”
“The agency lowered its projection of GDP growth for the year, to 1.5% from 3.1%, “reflecting the surprising economic weakness in the first half of the year.””
“But there are fiscal pressures on the horizon. The CBO said deficits will start to rise again after 2015, and approach $1 trillion in 2024.”

Read more:

http://www.marketwatch.com/story/cbo-forecasts-506-billion-budget-deficit-for-2014-2014-08-27?dist=countdown

 

Obama sequester lies reported by Washington Post, Obama false claim of Capitol janitors receiving pay cut, Obama gets 4 Pinocchios, Post receives 4 Murrows

Obama sequester lies reported by Washington Post, Obama false claim of Capitol janitors receiving pay cut, Obama gets 4 Pinocchios, Post receives 4 Murrows

“Starting tomorrow everybody here, all the folks who are cleaning the floors at the Capitol. Now that Congress has left, somebody’s going to be vacuuming and cleaning those floors and throwing out the garbage. They’re going to have less pay. The janitors, the security guards, they just got a pay cut, and they’ve got to figure out how to manage that. That’s real.”… Obama news conference, March 1, 2013

“dedicated his life as a newsman and as a public official to the unrelenting search for truth.”…Lyndon B. Johnson

“The function of the press is very high. It is almost Holy.
It ought to serve as a forum for the people, through which
the people may know freely what is going on. To misstate or
suppress the news is a breach of trust.”…. Louis D. Brandeis

Hats off to the Washington Post for reporting the truth about Obama sequester lies.

From the Washington Post March 1, 2013.
“Sequester spin: Obama’s false claim of Capitol janitors receiving ‘a pay cut’”

“This column has been updated with a new Pinocchio rating

This was a pretty evocative image the president offered at his news conference Friday on the sequester — janitors sweeping the empty halls of the Capitol, laboring at less pay.

When we first heard his remarks, we thought he was perhaps overstating matters. Even at federal agencies that have planned furloughs, none are expected to begin on Saturday; such actions are weeks away at many federal agencies. But that’s perhaps a minor rhetorical overreach.

But then our colleague Ed O’Keefe obtained the sequester plan released by the Architect for the Capitol, which employs Capitol Hill janitors on the House side. (The Sergeant at Arms employs the janitorial staff on the Senate side.) UPDATE: Obama’s remarks also prompted a warning from AOC officials that his comments were “not true.”

The Facts

We have embedded an image of the first AOC document below. Stephen T. Ayers, the  architect of the Capitol, listed a number of steps being taken to reduce expenses, including limiting new hiring and postponing repairs. This line jumped out at us: “We do not anticipate furloughs for AOC employees as a result of Sequestration.””

“(The White House officials’ aggressive pushback of this column ended after we sent a copy of this email to them.)

On the Senate side of the building, Sergeant at Arms Terry Gainer said the cleaning technicians are his employees–not contract employees, except for setting up rooms for meetings and events.

“None of my employees will have their pay cut nor will they face furloughs assuming the cost saving strategies initiated months ago (hiring freeze, overtime reduction and delayed in equipment replacement etc.), in conjunction with a very aggressive early retirement program we began two weeks ago, reap the savings anticipated,” he said in an e-mail.

As for security guards at the Capitol, Gainer, who is chairman of the Capitol Hill Police Board, added:

“Our Centurions will face neither pay cuts nor furloughs; they are standing tall through sequestration and all. (We are saving $ by reducing overtime which is accomplished by closing doors of convenience, safety will not be compromised but health improved for visitors and staff by longer treks. )”

The Pinocchio Test

Obama’s remarks continue the administration’s pattern of overstating the potential impact of the sequester, which we have explored this week. But this error is particularly bad–and nerve-wracking to the janitors and security guards who were misled by the president’s comments.

We originally thought this was maybe a Two Pinocchio rating, but in light of the AOC memo and the confirmation that security guards will not face a pay cut, nothing in Obama’s statement came close to being correct.

Four Pinocchios”

Read more:

http://www.washingtonpost.com/blogs/fact-checker/post/sequester-spin-obamas-incorrect-claim-of-capitol-janitors-receiving-a-pay-cut/2013/03/01/3407535c-82a9-11e2-b99e-6baf4ebe42df_blog.html

In the spirit of Edward R. Murrow and his never ending search for the truth, I award the Washington Post 4 Murrows.

Murrows4

Obama lies March 2, 2013, Obama lies hypocrisy exposed in NC, John Hammer Rhino Times, Sequester Bob Woodward, Does Obama have any Chicago friends not in prison?

Obama lies March 2, 2013, Obama lies hypocrisy exposed in NC, John Hammer Rhino Times, Sequester Bob Woodward, Does Obama have any Chicago friends not in prison?

“If the Bush tax cuts were only for the wealthy, as the media has been telling us now for years, why, if the tax cuts are allowed to expire, is it going to be disastrous for the middle class? Tax cuts for the wealthy are not going to affect the middle class whether they expire or not. Is it possible that the media has been lying to us all this time and the Bush tax cuts were for the middle class as well as the wealthy? It seems like even the Democrats would have to admit that is the case, if they were honest.”…John Hammer, Rhino Times

“I believe I’m more pristine on Rezko than him.”…Rod Blagojevich

“There is enough corruption in Illinois so that all it takes is someone who is serious about finding it to uncover it. If a U.S. attorney is not finding corruption in Illinois, they’re not seriously looking for it.”…Northwestern Law Professor James Lindgren

 

In print in NC.

From John Hammer of the Rhino Times February 28, 2013.

“I can’t believe the level to which President Barack Hussein Obama has
sunk with this whole sequester mess. First of all it was his idea. He
can blame it on the Republicans all he wants but this was his idea.
Even noted liberal writer Bob Woodward has written that it was Obama’s
idea.”

“The federal government is on line to spend $3.8 trillion this year.
The sequester will limit the federal government to spending $3.715
trillion, so apparently the only thing in that entire budget that can
be cut are air traffic controllers, Transportation Security
Administration agents at airports, Border Patrol agents, education
funding and other services that directly affect people.

The truth is that nobody is really talking about cutting anything. For
one thing the federal government doesn’t have a budget. It has not had
one since the first year Obama took over as president. There is no
budget, so federal agencies just keep growing. All the sequester does
is cut back on the rate of growth a little bit.

Why should the federal government grow every year? If all the federal
services that were provided in 2012 were provided at exactly the same
level by employees being paid exactly the same amount of money would
that cause massive problems for the people of the country?

The sequester doesn’t even come close to doing that. It just calls for
across-the-board cuts that reach a level of $85 billion. Last year the
federal government spent over $2 billion providing cell phones to
people who could not afford them. I didn’t know that owning a cell
phone was an inalienable right like life, liberty and the pursuit of
happiness, but evidently it is important enough for the federal
government to spend $2 billion on Obama-phones. Of course, that was an
election year. The federal government might not have to spend quite as
much on Obama-phones since all those votes have been cast.

Imagine for just a moment if the sequester meant that the Air Force
One pilot would be furloughed and the Obamas could not fly anywhere
they wanted at any moment. Imagine if just one week a month the Obamas
couldn’t fly anywhere because they didn’t have a pilot.

Or what if the sequester caused Obama’s favorite golf course to be
closed on Sundays. Or isn’t it possible that with the sequester the
White House chef would be laid off?

In fact, it is somewhat amazing that the American people are going to
be so inconvenienced by the reduction in anticipated spending that
this sequester brings, but the president will not be inconvenienced at
all.

Imagine – according to Obama the federal government can’t survive on a
mere $3.715 trillion without making drastic cuts to services that many
Americans use.

In 2008, the last budget of the George Walker Bush administration
total federal spending was $2.9 trillion. Obama has increased spending
during his four years by nearly $1 trillion. If the federal government
went back to the 2008 budget that would cut almost $1 trillion from
the current spending pattern (as noted, there is no budget). But were
things really so bad in 2008? I remember flying in 2008 and there were
no long delays because of a lack of air traffic controllers. The
national parks were open, and children were being educated. So four
years ago Bush was able to run the country on $1 trillion less, but in
2013 Obama can’t run the country on $85 billion less?

If Obama wanted to he could cut $85 billion from projected federal
spending and no one would notice except for the overpaid, underworked
administrators who would be laid off. The federal workforce is a huge
pork barrel. You have employees who work really hard and do an
outstanding job, and you have entire departments who do nothing
useful. Obama doesn’t want to eliminate the entire departments who do
nothing useful because that would be evidence that the federal
government doesn’t need to raise taxes. He is going to do everything
in his power to make the reductions in projected spending as painful
as possible.

One report said that although Air Force One will not be touched by the
reduction in the rate of growth that the Air Force might stop
providing planes for congressional junkets.

It is extremely hard to write about the sequester without writing
about cuts, but in reality there are no cuts. Imagine a child who
really wants a pony for Christmas and begs and pleads for a pony for
months. Christmas morning comes and there is no pony. Now can that
child say that she lost a pony? Can she say that she had a pony and it
was taken away from her? Not according to most people. But if a
federal department is expecting an increase and that increase is
reduced that is considered a cut.

Only in government can someone get 10 percent more than the previous
year and call it a cut in spending.”

“Most people in the country don’t read Under the Hammer, and far too
many simply take what is presented in the mainstream media as fact. It
is a sad day for journalism but, just like ABC editing Michelle
Obama’s comments, the reporting on the Obama administration is as much
fantasy as fact.

Even Bob Woodward felt the need to step up and remind primarily
reporters that Obama was the one who came up with sequester idea and
supported it.”

“Jackson was co-chairman of the Obama presidential campaign in 2008,
but if you are reading articles about Jackson going to prison you
don’t often see that job mentioned or any reference to what a close
relationship Jackson and Obama had at one time.

Jackson’s sister and Michelle Obama were good friends when they were
growing up. Jesse Jackson Sr. has said Michelle was over at his house
all the time as a teenager.

Does Barack Obama have any friends left in Chicago who aren’t in
prison? Obama’s close friend Tony Rezko, who was kind enough to help
Obama buy his house in Chicago, is in jail for fraud. Former Gov. Rod
Blagojevich is also in prison. Obama claimed credit for getting
Blagojevich elected governor. He used to say that he ran the campaign.
However, now Blagojevich is just some guy from Chicago that Obama may
have bumped into a few times.

Really, you look at Obama’s friends and you have to wonder what kind
of man we have elected as president. One of his best buddies is Bill
Ayers, who is an unrepentant domestic terrorist. Ayers participated in
bombings in that killed people and got off on a technicality. Back
when Ayers was running from the law, I’m sure he had no idea that one
day he’d be a good friend with the president of the United States.

Consider also that Obama’s brother, George Obama, lives in abject
poverty in Kenya. George Obama lives in a hovel made of old pieces of
metal and cardboard. In an interview he said he lived on $1 a month.
His brother is the most powerful man in the world and privately worth
millions of dollars, yet Barack Obama won’t send his brother George
$10 a year to double his income. It’s frightening to think of what
kind of man is running the country.”

Well worth reading more:

http://greensboro.rhinotimes.com/Articles-Columns-c-2013-02-27-214943.112113-Under-the-Hammer.html

Sequestration begins, March 1, 2013, Congress fails to reach agreement, More Obama failure and blame, $85 billion spending sequesters

Sequestration begins, March 1, 2013, Congress fails to reach agreement, More Obama failure and blame, $85 billion spending sequesters

“Because I’m capping greenhouse gases, coal power plants, you know, natural gas, you name it — whatever the plants were, whatever the industry was, uh, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers.”…Barack Obama 

“What do you think a stimulus is? It’s spending – that’s the whole point! Seriously.”…Barack Obama

“…and Socialist governments traditionally do make a financial mess. They [socialists] always run out of other people’s money. It’s quite a characteristic of them.”…Margaret Thatcher

 

More Obama spending failures and blaming others.

From the Washington Times March 1, 2013.

“Sequestration process begins: Congress fails to reach agreement on budget fixes before deadline”

“The federal government careened into the $85 billion spending sequesters Friday, embracing some of the biggest budget cuts in American history — though it will take weeks for most of the pain to be felt.

Most lawmakers said they had hoped to avoid the across-the-board cuts but couldn’t come to a consensus on how to do so. Senators defeated two last-ditch efforts Thursday and then House members skipped town for the weekend, leaving it to President Obama to begin carrying out the cuts, which he said he would do just before midnight.

He has scheduled a Friday morning meeting with congressional leaders to talk about the situation, but no action is expected.
In the short term, the White House has directed federal agencies to curtail travel, cancel any bonuses they aren’t legally obligated to pay, and begin writing plans for how to furlough employees.

Those furlough notices will go out in coming weeks, and federal contractors and state and local governments will have to adjust to lower federal funding.
It’s pain that few in Washington wanted. But lawmakers were unable to settle on a more palatable alternative, making the sequesters, in effect, a bad idea whose time has come.”

“Mr. Obama chastised senators for failing.

“Instead of closing a single tax loophole that benefits the well-off and well-connected, they chose to cut vital services for children, seniors, our men and women in uniform and their families,” he said. “They voted to let the entire burden of deficit reduction fall squarely on the middle class.””

“Some of the pain the administration has warned about may not be true.

Education Secretary Arne Duncan, speaking in the White House briefing room this week, pointed to a school district in West Virginia that he said was laying off teachers because of the sequester. But school officials there said it had nothing to do with the sequester.”

http://www.washingtontimes.com/news/2013/feb/28/sequester-imminent-after-senate-fails-act/

Sequestration impact on Federal Education Programs, Automatic across the board reductions in discretionary programs, Obama stimulus and failed energy spending helped create huge deficit

Sequestration impact on Federal Education Programs, Automatic across the board reductions in discretionary programs, Obama stimulus and failed energy spending helped create huge deficit

“Why was Obama in constant contact with Tony Rezko in 2004 when Rezko was conspiring with William Cellini to use TRS, Teacher Retirement Fund, assets for political gain and personal enrichment?”…Citizen Wells

“What do you think a stimulus is? It’s spending – that’s the whole point! Seriously.”…Barack Obama

“…and Socialist governments traditionally do make a financial mess. They [socialists] always run out of other people’s money. It’s quite a characteristic of them.”…Margaret Thatcher

Much is being said about the impact of sequestration on federal education spending.

From the NEA.

“Impact of Sequestration on Federal Education Programs – State-by-State

Across-the-board cuts known as “sequestration” are scheduled to go into effect on March 1, 2013 unless Congress acts.  These cuts – nearly $3 billion for education alone —  would result in:

  • Services cut or eliminated for millions of students.
  • Funding for children living in poverty, special education, and Head Start slashed by billions.
  • Ballooning class sizes.
  • Elimination of after-school programs.
  • Decimation of programs for our most vulnerable—homeless students, English language learners, and high-poverty, struggling schools.
  • Slashing of financial aid for college students.
  • Loss of tens of thousands of education jobs—at early childhood, elementary, secondary, and postsecondary levels.

http://www.nea.org/home/52610.htm

Sequestration defined.

From Idea Money Watch.

Q. What is sequestration? (Pronounced se″kwes-tra´shun)
A. Sequestration is a fiscal policy procedure adopted by Congress to deal with the federal budget deficit. It first appeared in the Gramm-Rudman-Hollings Deficit Reduction Act of 1985.

Simply put, sequestration is the cancellation of budgetary resources — an “automatic” form of spending cutback. (Learn more here.)
 Q. Why is sequestration important now?

A. The Budget Control Act of 2011 (BCA) established a 12 member Joint Select Committee on Deficit Reduction  (or “super committee”)  charged with reducing the deficit by an additional $1.2 – $1.5 trillion over ten years. The BCA also included a sequestration hammer should the super committee fail, a provision intended to “force” the super committee to act.

Despite the threat of sequestration, the super committee failed. Announcing its inability to reach an agreement on November 21, 2011, the members of the bipartisan committee stated  that “after months of hard work and intense deliberations, we have come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee’s deadline.”

So, as established in the BCA, sequestration was triggered when the super committee failed to reach an agreement. Sequestration generates automatic cuts for each of nine years, FY 13-21, totaling $1.2 trillion. Sequestration was originally scheduled to take effect on Jan. 2, 2013. However, it was delayed for two months – until March 1, 2013, by the deal struck on New Year’s Eve, called the American Taxpayer Relief Act of 2012.

Now, without Congressional action to prevent sequestration, the first round of cuts will take place on March 1, 2013.

The 2013 cuts apply to “discretionary” spending and are divided between reductions to  defense ($500 billion) and non-defense ($700 billion). 

Q. What must occur in order to avoid sequestration?  


A.
 Sequestration can only be avoided if Congress passes legislation that undoes the legal requirement in the BCA and that President Obama will sign before March 1, 2013.

While advocacy efforts to prevent sequestration are beginning to spring up, the strongest efforts focus on preventing the deep cuts to defense spending.


Q. Can the Executive Branch reconfigure sequestration cuts?


A. 
No. The cuts are automatic, across-the-board reductions to all discretionary programs unless exempted by the BCA. (A list of exempt programs is available here
.) The Executive Branch will have no authority or ability to redistribute the cuts.

http://www.ideamoneywatch.com/main/index.php?option=com_content&view=article&id=60&Itemid=72

$ 3 billion in education cuts because our spending is out of control.

How did that happen?

Here is part of the reason.

A $840 billion Obama stimulus program.

From The Foundry October 18, 2012.

“The 2009 stimulus set aside $80 billion to subsidize politically preferred energy projects. Since that time, 1,900 investigations have been opened to look into stimulus waste, fraud, and abuse (although not all are linked to the green-energy funds), and nearly 600 convictions have been made. Of that $80 billion in clean energy loans, grants, and tax credits, at least 10 percent has gone to companies that have since either gone bankrupt or are circling the drain.”

“So far, 34 companies that were offered federal support from taxpayers are faltering — either having gone bankrupt or laying off workers or heading for bankruptcy. This list includes only those companies that received federal money from the Obama Administration’s Department of Energy and other agencies. The amount of money indicated does not reflect how much was actually received or spent but how much was offered. The amount also does not include other state, local, and federal tax credits and subsidies, which push the amount of money these companies have received from taxpayers even higher.

The complete list of faltering or bankrupt green-energy companies:

  1. Evergreen Solar ($25 million)*
  2. SpectraWatt ($500,000)*
  3. Solyndra ($535 million)*
  4. Beacon Power ($43 million)*
  5. Nevada Geothermal ($98.5 million)
  6. SunPower ($1.2 billion)
  7. First Solar ($1.46 billion)
  8. Babcock and Brown ($178 million)
  9. EnerDel’s subsidiary Ener1 ($118.5 million)*
  10. Amonix ($5.9 million)
  11. Fisker Automotive ($529 million)
  12. Abound Solar ($400 million)*
  13. A123 Systems ($279 million)*
  14. Willard and Kelsey Solar Group ($700,981)*
  15. Johnson Controls ($299 million)
  16. Brightsource ($1.6 billion)
  17. ECOtality ($126.2 million)
  18. Raser Technologies ($33 million)*
  19. Energy Conversion Devices ($13.3 million)*
  20. Mountain Plaza, Inc. ($2 million)*
  21. Olsen’s Crop Service and Olsen’s Mills Acquisition Company ($10 million)*
  22. Range Fuels ($80 million)*
  23. Thompson River Power ($6.5 million)*
  24. Stirling Energy Systems ($7 million)*
  25. Azure Dynamics ($5.4 million)*
  26. GreenVolts ($500,000)
  27. Vestas ($50 million)
  28. LG Chem’s subsidiary Compact Power ($151 million)
  29. Nordic Windpower ($16 million)*
  30. Navistar ($39 million)
  31. Satcon ($3 million)*
  32. Konarka Technologies Inc. ($20 million)*
  33. Mascoma Corp. ($100 million)

*Denotes companies that have filed for bankruptcy.”

http://blog.heritage.org/2012/10/18/president-obamas-taxpayer-backed-green-energy-failures/

WE warned you.

Obama is doing to the US education system what he and his cronies did to Illinois.

From Citizen Wells March 29, 2012.

“Obama, Blagojevich and their cronies used the citizens of Illinois, Teachers Retirement System, hospitals and taxpayer dollars for their own benefit.”

“2003: “Of the five funds, the one in the sorriest shape is the Illinois Teacher Retirement System, which provides the pensions for suburban and downstate teachers. Its ratio of assets to liabilities stood at a mere 52 percent last year, so poor that it was considered among the five worst-funded plans in the country.”

“In 2002, the year after Obama made the pitch, the Illinois Teacher Retirement System reported an 18% increase in assets managed by minority-owned firms. Ariel’s share grew to $442 million by 2005.

In 2006, after the federal investigation became public, the teacher pension board severed its relationship with Ariel, concluding that Ariel’s investment returns were insufficient.”

“In addition to lining their own pockets, the money gained through the scheme was funneled to the campaigns of Blagojevich and Obama. Prosecutors have identified two $10,000 payments that were made to Obama’s US Senate campaign through straw donors Joseph Aramanda and Elie Maloof, which originated from a kickback paid by investment firm, Glencoe Capital, to secure approval for a $50 million deal.
Aramanda and Maloof also each gave Obama $1,000 for his failed run for Congress in 2000. Once Obama became a US Senator, Aramanda’s son was granted a coveted intern position in Obama’s Senate office in Washington during the summer of 2005, based on a request which the Obama’s camp has admitted came from Rezko.”

“Mr. Obama also recently pointed to his work on the Illinois pension issue as a model for what he would do as president to promote minority-owned companies.”

Read more:

https://citizenwells.wordpress.com/tag/obama-doing-to-us-what-he-did-to-illinois/

Federal budget deficit explained in common sense terms in NC, John Hammer Rhino Times, January 24, 2013, Obama and congress increased spending 40 percent

Federal budget deficit explained in common sense terms in NC, John Hammer Rhino Times, January 24, 2013, Obama and congress increased spending 40 percent

“only 2 percent of the 3.5 million jobs gained since the recession ended in June 2009 are midpay. Nearly 70 percent are low-paying jobs”…AP, Kitsap Sun January 22, 2013

“We tried our plan—and it worked. That’s the difference. That’s the choice in this election. That’s why I’m running for a second term.”…Barack Obama

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984″

 

Common sense in print in NC.

From John Hammer of the Rhino Times January 24, 2013.

“If you listen to Democrats, and even some Republicans, for the federal government to balance its budget would require draconian cuts that would decimate the Defense Department and put major social welfare programs in bankruptcy. But the truth is that the federal government will take in $2.9 trillion in revenue this fiscal year. If the federal government would simply reduce spending to what it was a mere five years ago it would have a surplus instead of a trillion dollar deficit.

In 2007 the federal government spent $2.7 trillion. That was during the presidency of George Walker Bush and the budget deficit was about $200 billion, because the revenue that year was $2.56 trillion.

What Congress and President Obama have managed to do since then is increase spending astronomically. The projected spending for 2013 is $3.8 trillion. So even though revenue has increased to $2.9 trillion the deficit is still right around a trillion dollars.

It is an unbelievable increase in spending. The problem is not, as Obama continues to say, that the rich aren’t paying their fair share. The problem is that Obama and Congress have increased spending by 40 percent in the past five years. This is during a period of almost no inflation.

Since 2007 the federal government has increased its spending by $1.1 trillion. It is an incredible amount of money and it would be nice to blame it all on Obama, but Obama is a co-conspirator. Spending bills have to originate in the House, which the Republicans have controlled since 2011. Obama in his first term had pretty much free rein in Congress. The Democrats controlled the House and for almost a year had a filibuster-proof majority in the Senate. Spending skyrocketed and in Obama’s first year in office, 2009, the budget deficit increased to $1.4 trillion.

What could only be done in Washington – where reality left the building decades ago – is that the budget deficit has remained over $1 trillion. The reason for the budget deficit in 2009 was the $1 trillion stimulus plan that Congress passed and Obama signed as soon as possible. That was supposed to spike up the spending, but then it was supposed to come back down.

It never has.

But the country ran pretty well in 2007. We were fighting the War on Terror in Iraq and Afghanistan, Social Security was being paid, as were Medicare and Medicaid. The federal government was throwing money at local governments, as it does, but evidently to go back to those years would be a tremendous hardship. It’s hard to believe.”

Read more:

http://greensboro.rhinotimes.com/Articles-Columns-c-2013-01-23-214571.112113-under-the-hammer.html

Rhino Times, December 1, 2012, Under the Hammer, Truth in print in NC, Media bias, Big government larger problem than deficit, Obama campaign vs Romney

Rhino Times, December 1, 2012, Under the Hammer, Truth in print in NC, Media bias, Big government larger problem than deficit, Obama campaign vs Romney

“As the crisis develops, it will be important to use the mass media to inform the broader llberal community about the inefficiencies and injustices of welfare. For example, the system will not be able to process many new applicants because of cumbersome and often unconstitutional investi-gatory procedures (which cost 20c for every dollar dis-bursed). As delays mount, so should the public demand that a simplified affidavit supplant these procedures, so that the
poor may certify to their condition. If the system reacts by making the proof of eligibility more difficult, the demand should be made that the Department of Health, Education and Welfare dispatch “eligibility registrars” to enforce federal statutes governing local programs. And throughout the crisis, the mass media should be used to advance arguments for a new federal income distribution program.”…Richard Cloward and Frances Piven

“If I had my choice I would kill every reporter in the world but I am sure we would be getting reports from hell before breakfast.”… William Tecumseh Sherman

“The past, he reflected, had not merely been altered, it had
actually been destroyed. For how could you establish, even
the most obvious fact when there existed no record outside
your own memory?”…George Orwell, “1984″

Truth in print in NC.

From the Rhinoceros Times November 29, 2012.

“In 2005, Hurricane Katrina hit New Orleans. It had been a Category 5 hurricane and made landfall as a Category 3. The devastation to the Gulf coast, including New Orleans, was the costliest in US history. And according to the mainstream media, the devastation – including the large number of people who died, and the fact that displaced people did not have proper shelter, food and water – was the fault of then President George Walker Bush. To this day you hear about what a bad job Bush did during Katrina.”

“However, President Barack Hussein Obama doesn’t get any blame. By walking on the beach with New Jersey Gov. Chris Christie, Obama got a lot of kudos from the mainstream media. Evidently the hurricane was not Obama’s fault and as president he was not responsible for evacuating people from their homes or providing them with shelter, food and water.”

“One thing the mainstream media refuse to understand is that conservatives do not see the growing deficit as the problem but as a symptom of a much more serious problem. The problem is that government has grown far too big and is doing too much for too many people. The result of the government being out of control is an out-of-control deficit.

If this is what you believe, then raising taxes is not a solution because it only allows the government to continue to grow. Liberals don’t see the size of government as a problem, only that the government doesn’t have enough money to pay for all of the worthwhile and important services it performs. For example, liberals believe that all Americans have a God-given right to a cell phone. Cutting out free cell phones for people is not going to balance the budget, but that attitude is what has gotten us where we are.”

“People, including the vast left-wing conspiracy at the News & Record, are all bent out of shape over these secession petitions on the internet. What happened to the right of free speech? You would think that a newspaper would support people’s right to write and sign any kind of petition they want.

For at least the last 40 years there has been a group that protests against war and in favor of world peace in front of the federal courthouse on the corner of Eugene and West Market streets. These people are extremely devoted and believe in their cause. They also believe that somehow standing on a corner in Greensboro, North Carolina, rain or shine, is going to help stop war all over the world. I don’t understand it, but I believe they have every right to stand there and protest whatever they want, and I admire them for their dedication. This is America. We are supposed to have freedom of speech and freedom of assembly.

Maybe some conservative news media have gotten all bent out of shape about these people, but I don’t recall it and I think I would know.

Many of those signing the secessionist petitions think that the federal government is already way too big. They also, for the most part, see the reelection of Obama as irrefutable evidence that the federal government is going to get bigger. Some of them no doubt would really like to secede from the United States of America. States are supposed to have some sovereignty, and if you read the Constitution, states are actually supposed to have a lot of sovereignty. Over the years the states have lost power and the federal government has gained power. Many people would like to see that trend start going the other way and begin moving back so the states in the United States mean something other than a mailing address or a way for Google maps to find a location.”

“People will be glad to know that now that the campaigning is over, Obama is back to his busy schedule running the world during the week and playing golf on the weekends. Obama was back out on the course on the Friday after Thanksgiving for his 106th round as president. However, it is his only 14th round this year because campaigning has taken up so much of his time.

With no campaigns in his future, here’s hoping that Obama can hit the golf course two or three times a week. When he is out on the course the world is a safer place. But it does say a lot about his priorities that wars and disasters don’t keep him off the golf course but a campaign for reelection does.”

“Of course, one of the huge mistakes the Romney campaign made was at the other end of the technological spectrum. I wrote several times during the campaign that the campaigns had better polling data than the public and I was half right. The Obama campaign had much better polling data than the general public and – the exception that proves the rule – the Romney campaign had much worse polling data than the general public. The Romney campaign pollsters completely missed the demographic mix of the electorate. Because of that late, in the campaign Romney was wasting time in states that he didn’t have a chance of winning instead of spending all his time in the true battleground states.”

“By the way, despite all that talk you heard about the fat cats supporting Romney with massive amounts of money, the Obama campaign raised $100 million more than the Romney campaign.”

Read more:

http://greensboro.rhinotimes.com/Articles-Columns-c-2012-11-28-213994.112113-Under-The-Hammer.html

 

Obama deficit lies, Obama blames Bush tax cuts, AP repeats Obama lie, Washington Post reveals Obama lie, 4th Straight $1 Trillion Plus deficit spending

Obama deficit lies, Obama blames Bush tax cuts, AP repeats Obama lie, Washington Post reveals Obama lie, 4th Straight $1 Trillion Plus deficit spending

“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012

“Since the Democrats took control of both houses of congress in January 2007, the number of people who could only find part time work has gone up 215 percent”…Citizen Wells

“Student health care costs have doubled, tripled and in some cases increased over 1000% in 2012. Premiums for employer provided family coverage rose $2,370 since 2009, Obamacare penalties to hospitals will average $125,000 per facility in 2013 and gasoline has risen over $2 per gallon since Obama took office.”…Citizen Wells

“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″

Obama has been blaming Bush for the deficit and bad economy since he began running for the presidency. He continues to blame the Bush Tax cuts for the deficit even though it is a lie. The Washington Post recently exposed this lie.

From Citizen Wells October 8, 2012.

“From the Washington Post October 1, 2012.

“Obama’s claim that the Bush tax cuts led to the economic crisis”

“Now Governor Romney believes that with even bigger tax cuts for the wealthy, and fewer regulations on Wall Street, all of us will prosper. In other words, he’d double down on the same trickle-down policies that led to the crisis in the first place.”

— President Obama, in a new two-minute television ad released Sept. 27, 2012

“This election to me is about which candidate is more likely to return us to full employment. This is a clear choice. The Republican plan is to cut more taxes on upper income people and go back to deregulation. That is what got us into trouble in the first place.”

— Former president Bill Clinton, in an Obama campaign ad running since August

When two different people give virtually the same message in two different ads, it’s a good bet that the language has been carefully poll-tested. Both President Obama and former president Bill Clinton assert that Mitt Romney wants to cut taxes for the wealthy and cut financial regulations — which they suggest is a recipe for another economic crisis.

The name “George W. Bush” is never mentioned but is certainly implied. This leads to the question: Did the Bush tax cuts cause the economic crisis?

We’ve been interested in the Clinton comments for some time and never quite got a satisfactory response from the Obama campaign. But Clinton used the vague word “trouble,” which could be broadly defined as also meaning higher deficits. (Clinton’s staff did not respond to queries about what he meant.) Certainly the Bush tax cuts did play some role in higher deficits, though, as we have noted, increased spending played a bigger role.

But Obama is not vague at all. He highlights the tax cuts and then says the “same trickle-down policies” — Democratic code for tax cuts for the wealthy — led to the “crisis.” The campaign’s back-up material labels that as “economic crisis,” thus leaving no ambiguity about his reference.”

The Pinocchio Test

It is time for the Obama campaign to retire this talking point, no matter how much it seems to resonate with voters. The financial crisis of 2008 stemmed from a variety of complex factors, in particular the bubble in housing prices and the rise of exotic financial instruments. Deregulation was certainly an important factor, but as the government commission concluded, the blame for that lies across administrations, not just in the last Republican one.

In any case, the Bush tax cuts belong at the bottom of the list — if at all. Moreover, it is rather strange for the campaign to cite as its source an article that, according to the author, does not support this assertion.”

https://citizenwells.wordpress.com/2012/10/08/washington-post-and-labor-dept-facts-expose-obama-lies-bush-tax-cuts-employment-data-democrats-controlled-both-houses-of-congress-playbook-of-goebbels-orwell/

Despite the fact that Obama knew it was a lie, Obama continued to blame the Bush Tax cuts in his debate with Mitt Romney.

“When I walked into the Oval Office, I had more than a trillion-dollar deficit greeting me. And we know where it came from: two wars that were paid for on a credit card; two tax cuts that were not paid for”

From NPR and the AP October 12, 2012.

“US Runs A 4th Straight $1 Trillion-Plus Budget Gap”

“The United States has now spent $1 trillion more
than it’s taken in for four straight years.

The Treasury Department confirmed Friday what was widely expected: The
deficit for the just-ended 2012 budget year — the gap between the
government’s tax revenue and its spending — totaled $1.1 trillion. Put
simply, that’s how much the government had to borrow.

It wasn’t quite as ugly as last year.

Tax revenue rose 6.4 percent from 2011 to $2.45 trillion. And spending
fell 1.7 percent to $3.5 trillion. As a result, the deficit shrank 16
percent, or $207 billion.

A stronger economy meant more people had jobs and income that
generated tax revenue. Corporations also contributed more to federal
revenue than in 2011.

The government spent less on Medicaid and on defense as U.S. military
involvement in Iraq was winding down.

Barack Obama’s presidency has coincided with four straight $1
trillion-plus annual budget deficits — the first in history and an
issue in an election campaign that ends in 3½ weeks.

When Obama took office in January 2009, the Congressional Budget
Office forecast that the deficit that year would total $1.2 trillion.
It ended up at a record $1.41 trillion.

The increase was due in large part to the worst recession since the
Great Depression. Tax revenue plummeted, and the government spent more
on stimulus programs.

Tax cuts enacted under President George W. Bush and military spending
in Iraq and Afghanistan contributed to the deficits.”

Read more:

http://www.npr.org/templates/story/story.php?storyId=162821416

The AP, Associated Press, repeats the Obama lie about Bush Tax Cuts contributing to the deficits.

“Tax cuts enacted under President George W. Bush and…contributed to the deficits.”

For their continued efforts to help Obama the AP receives 4 Orwells.

2013 huge tax increases loom, Typical middle income family $2000 increase, Bush tax cuts not just for wealthy, Obama lies exposed, 90 percent of households tax increase

2013 huge tax increases loom, Typical middle income family $2000 increase, Bush tax cuts not just for wealthy, Obama lies exposed, 90 percent of households tax increase

“I would not increase taxes for middle class Americans and in fact I want to….provide a tax cut for people who are making $75,000 a year or less,” “For those folks, I want an offset on the payroll tax that would be worth as much as $1,000 for a family.”…Barack Obama March 27, 2008

“Obama’s completely disingenuous dodge on whether he would raise taxes during a time of economic slowdown is belied by his vote earlier this month,” “Obama’s claims to the contrary, his votes to raise taxes on people earning as little as $31,850 are straight from the Democrats’ tax-and-spend playbook.”…Alex Conant, RNC spokesman March 27, 2008

“It is time for the Obama campaign to retire this talking point, no matter how much it seems to resonate with voters. The financial crisis of 2008 stemmed from a variety of complex factors, in particular the bubble in housing prices and the rise of exotic financial instruments. Deregulation was certainly an important factor, but as the government commission concluded, the blame for that lies across administrations, not just in the last Republican one.
In any case, the Bush tax cuts belong at the bottom of the list — if at all. Moreover, it is rather strange for the campaign to cite as its source an article that, according to the author, does not support this assertion.”…Washington Post October 1, 2012

First of all, I would like to thank and congratulate the Washington Post for awarding Obama 3 Pinochios for blaming the Bush Tax Cuts for the economic crisis.

Second. As you will see below, the Bush tax cuts were not just for the wealthy.

From the Telegraph Herald October 2, 2012.

“Tax increase looms at year-end ‘fiscal cliff’

A typical family could see its taxes go up by $2,000 next year if lawmakers fail to renew cuts set to expire at the end of the year.”

“A typical middle-income family making $40,000 to $64,000 per year could see its taxes go up by $2,000 next year if lawmakers fail to renew a lengthy roster of tax cuts set to expire at the end of the year, according to a new report Monday

Taxpayers across the income spectrum would be hit with large tax hikes, the Tax Policy Center said in its study, with households in the top 1 percent income range seeing an average tax increase of more than $120,000, while a family making between $110,000 to $140,000 could see a tax hike in the $6,000 range.

Taxpayers across the income spectrum will get slammed with increases totaling more than $500 billion — a more than 20 percent increase — with nine out of 10 households being affected by the expiration of tax cuts enacted under both President Obama and his predecessor, George W. Bush.

The expiring provisions include Bush-era cuts on wage and investment income and cuts for married couples and families with children, among others. Also expiring is a 2 percentage point temporary payroll tax cut championed by Obama.

The looming expiration of the large roster of tax cuts is one of the issues confronting voters in November, with the chief difference between Obama and GOP candidate Mitt Romney being the tax treatment of wealthier earners. Obama is calling for permitting rates on individual income exceeding $200,000 and family incoming over $250,000 to go back to Clinton-era rates of as much as 39.6 percent.

Both candidates call for rewriting the tax code next year, but any such effort promises to be difficult and could take considerable time.

Monday’s study, by the independent Tax Policy Center, deals with the immediate increases set to slap taxpayers in January under the existing framework of the tax code.

Few are talking of renewing Obama’s payroll tax cut, even though that would mean a tax increase for working people. Working families with modest incomes would be hit hard as the child tax credit would shrink from a maximum of $1,000 per child to $500.

As a result, a married couple earning $50,000 with three dependent children that currently receives an almost $1,500 income tax refund largely due to the child tax credit would see their fortunes reversed by more than $3,000 next year and pay more than $1,500 in income taxes while seeing their payroll taxes go up by $1,000 if the full menu of tax cuts expire.

Economists warn that the looming tax hikes, combined with $109 billion in automatic spending cuts scheduled to take effect in January, could throw the fragile economy back into recession if Washington doesn’t act. The automatic spending cuts are coming due because of the failure of last year’s deficit “supercommittee” to strike a bargain.

The combination of the sharp tax hikes and spending cuts has been dubbed a “fiscal cliff.”

“The fiscal cliff threatens an unprecedented tax increase at year end,” says the report. “Taxes would rise by more than $500 billion in 2013 — an average of almost $3,500 per household — as almost every tax cuts enacted since 2001 would expire.”

Cumulatively, the country would see a 5 percentage point jump in its average tax rate, which works out to taxes on the top 1 percent jumping by more than 7 percentage points and about 4 percentage points for most people earning below $100,000 per year.

Put another way, people in the $40,000-$64,000 income range would see their average federal tax rate jump from 14 percent to 17.8 percent — or an increase in their overall federal bill of 27 percent.

All told, almost 90 percent of all households would face a tax increase, though the top 20 percent of earners would bear 60 percent of the overall cost. Across all households the tax increases would average almost $3,500.

The expiration of cuts on capital gains and stock dividends is a key reason why wealthier people would see a higher increase in their tax burdens.

Republicans controlling the House have also called for the expiration of Obama-backed tax cuts for the working poor, including expansions of the earned income and child tax credits.

But all sides are calling for the renewal of Bush-era tax rates for everyone else. Without a renewal of those rates, a married couple would pay a 28 percent rate on taxable income exceeding $72,300 instead of the 25 percent rate they now pay. And the 10 percent rate paid on the first $8,900 of income would jump to 15 percent.

The new top rate of 39.6 percent would kick in for income over $397,000. The current top rate is 35 percent rate.

The Tax Policy Center is a joint project of the Urban Institute and the Brookings Institution.”

http://www.thonline.com/news/national_world/article_19fc291b-ce3c-5667-ad9b-875019eeac09.html

Obama Obamacare taxes facts, Negative impact on jobs economy, Huge Obama lie about not taxing lower incomes, Unemployment labor force participation affected

Obama Obamacare taxes facts, Negative impact on jobs economy, Huge Obama lie about not taxing lower incomes, Unemployment labor force participation affected

“Nobody who makes under $200,000 a year will see their taxes go up as long as I’m president.”…Barack Obama

“I absolutely reject that notion [mandate is a tax].”…Barack Obama

“The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command. His heart sank as he thought of the enormous power arrayed against him, the ease with which any Party intellectual would overthrow him in debate, the subtle arguments which he would not be able to understand, much less answer. And yet he was in the right! They were wrong and he was right. The obvious, the silly, and the true had got to be defended. Truisms are true, hold on to that! The solid world exists, its laws do not change. Stones are hard, water is wet, objects unsupported fall towards the earth’s centre. With the feeling that he was speaking to O’Brien, and also that he was setting forth an important axiom, he wrote:

Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984”

Much has been said about the recent Supreme Court ruling which stated that Obamacare is a tax, a very big tax. However, most commentary has focused on the individual mandate as being the primary taxation, much too simplistically.

Yesterday the Citizen Wells article indicated that future taxes to pay for Obamacare and out of control Obama deficit spending will be the spectre dreaded most. This will be explained below. Perhaps the biggest impact of Obamacare so far has been the influence on business decisions in regard to hiring and expansion. This is the hidden story, not being reported in the monthly unemployment and labor force participation numbers. Businesses have delayed making decisions and will continue to do so for some time. Even with the recent Supreme Court ruling it is anticipated that most or all of Obamacare will be repealed.

From Townhall June 29, 2012.

“The Coming ObamaTax Bomb”

“By now you know what the Supreme Court verdict is: ObamaCare is a tax. So what does that mean in terms of actual dollar amounts for Americans and businesses who will pay this new tax? The Heritage Foundation and Americans for Tax Reform have released a series of summaries, tables and charts to help families understand what this means for their wallet.

Heritage:

The Patient Protection and Affordable Care Act (PPACA)[1] imposes numerous tax hikes that transfer more than $500 billion over 10 years—and more in the future—from hardworking American families and businesses to Congress for spending on new entitlements and subsidies. In addition, higher tax rates on working and investing will discourage economic growth both now and in the future, further lowering the standard of living.”

1. Excise Tax on Charitable Hospitals (Min$/immediate): $50,000 per hospital if they fail to meet new “community health assessment needs,” “financial assistance,” and “billing and collection” rules set by HHS. Bill: PPACA; Page: 1,961-1,971

2. Codification of the “economic substance doctrine” (Tax hike of $4.5 billion).  This provision allows the IRS to disallow completely-legal tax deductions and other legal tax-minimizing plans just because the IRS deems that the action lacks “substance” and is merely intended to reduce taxes owed. Bill: Reconciliation Act; Page: 108-113

3. “Black liquor” tax hike (Tax hike of $23.6 billion).  This is a tax increase on a type of bio-fuel. Bill: Reconciliation Act; Page: 105

4. Tax on Innovator Drug Companies ($22.2 bil/Jan 2010): $2.3 billion annual tax on the industry imposed relative to share of sales made that year. Bill: PPACA; Page: 1,971-1,980

5. Blue Cross/Blue Shield Tax Hike ($0.4 bil/Jan 2010): The special tax deduction in current law for Blue Cross/Blue Shield companies would only be allowed if 85 percent or more of premium revenues are spent on clinical services. Bill: PPACA; Page: 2,004

6. Tax on Indoor Tanning Services ($2.7 billion/July 1, 2010): New 10 percent excise tax on Americans using indoor tanning salons. Bill: PPACA; Page: 2,397-2,399

Taxes that took effect in 2011

7. Medicine Cabinet Tax ($5 bil/Jan 2011): Americans no longer able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin). Bill: PPACA; Page: 1,957-1,959

8. HSA Withdrawal Tax Hike ($1.4 bil/Jan 2011): Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent. Bill: PPACA; Page: 1,959

Tax that took effect in 2012

9. Employer Reporting of Insurance on W-2 (Min$/Jan 2012): Preamble to taxing health benefits on individual tax returns. Bill: PPACA; Page: 1,957

Taxes that take effect in 2013

10. Surtax on Investment Income ($123 billion/Jan. 2013):  Creation of a new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 single).  This would result in the following top tax rates on investment income: Bill: Reconciliation Act; Page: 87-93
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*Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations.  It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income.  It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans.  The 3.8% surtax does not apply to non-resident aliens.
11. Hike in Medicare Payroll Tax ($86.8 bil/Jan 2013): Current law and changes:
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12. Tax on Medical Device Manufacturers ($20 bil/Jan 2013): Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax.  Exempts items retailing for <$100. Bill: PPACA; Page: 1,980-1,986

13. Raise “Haircut” for Medical Itemized Deduction from 7.5% to 10% of AGI ($15.2 bil/Jan 2013): Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI).  The new provision imposes a threshold of 10 percent of AGI. Waived for 65+ taxpayers in 2013-2016 only. Bill: PPACA; Page: 1,994-1,995

14. Flexible Spending Account Cap – aka “Special Needs Kids Tax” ($13 bil/Jan 2013): Imposes cap on FSAs of $2500 (now unlimited).  Indexed to inflation after 2013. There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.  There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education.  Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. Bill: PPACA; Page: 2,388-2,389

15. Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D ($4.5 bil/Jan 2013) Bill: PPACA; Page: 1,994

16. $500,000 Annual Executive Compensation Limit for Health Insurance Executives($0.6 bil/Jan 2013). Bill: PPACA; Page: 1,995-2,000

Taxes that take effect in 2014

17. Individual Mandate Excise Tax (Jan 2014): Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax according to the higher of the following

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Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS). Bill: PPACA; Page: 317-337

18. Employer Mandate Tax (Jan 2014):  If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2000 for all full-time employees.  Applies to all employers with 50 or more employees. If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3000. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer). Bill: PPACA; Page: 345-346

Combined score of individual and employer mandate tax penalty: $65 billion/10 years

19. Tax on Health Insurers ($60.1 bil/Jan 2014): Annual tax on the industry imposed relative to health insurance premiums collected that year.  Phases in gradually until 2018.  Fully-imposed on firms with $50 million in profits. Bill: PPACA; Page: 1,986-1,993

Taxes that take effect in 2018

20. Excise Tax on Comprehensive Health Insurance Plans ($32 bil/Jan 2018): Starting in 2018, new 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family).  Higher threshold ($11,500 single/$29,450 family) for early retirees and high-risk professions.  CPI +1 percentage point indexed. Bill: PPACA; Page: 1,941-1,956

Also, ATR is warning Americans of Taxmageddon, which will happen on January 1, 2013. This will be the largest tax hike in American history and will come in three waves.

First Wave: Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, the GOP Congress enacted several tax cuts for small business owners, families, and investors (later re-upped by President Obama and Democrat Congress in 2010).  The following tax hikes will occur on January 1, 2013:

Personal income tax rates will rise on January 1, 2013.  The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which the majority of small business profits are taxed).  The lowest rate will rise from 10 to 15 percent.  All the rates in between will also rise.  Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates.  The full list of marginal rate hikes is below:

– The 10% bracket rises to a new and expanded 15%

– The 25% bracket rises to 28%

– The 28% bracket rises to 31%

– The 33% bracket rises to 36%

– The 35% bracket rises to 39.6%

Higher taxes on marriage and family coming on January 1, 2013.  The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of taxable income.  The child tax credit will be cut in half from $1000 to $500 per child.  The standard deduction will no longer be doubled for married couples relative to the single level.

Middle Class Death Tax returns on January 1, 2013.  The death tax is currently 35% with an exemption of $5 million ($10 million for married couples).  For those dying on or after January 1 2013, there is a 55 percent top death tax rate on estates over $1 million.  A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.

Higher tax rates on savers and investors on January 1, 2013.  The capital gains tax will rise from 15 percent this year to 23.8 percent in 2013.  The top dividends tax will rise from 15 percent this year to 43.4 percent in 2013.  This is because of scheduled rate hikes plus Obamacare’s investment surtax.

Second Wave: Obamacare Tax Hikes

There are twenty new or higher taxes in Obamacare.  Some have already gone into effect (the tanning tax, the medicine cabinet tax, the HSA withdrawal tax, W-2 health insurance reporting, and the “economic substance doctrine”).  Several more will go into effect on January 1, 2013.  They include:

Medicare Payroll Tax Hike takes effect on January 1, 2013.  The Medicare payroll tax is currently 2.9 percent on all wages and self-employment profits.  Starting in 2013, wages and profits exceeding $200,000 ($250,000 in the case of married couples) will face a 3.8 percent rate.

“Special Needs Kids Tax” comes online on January 1, 2013  Imposes a cap on FSAs of $2500 (now unlimited).  Indexed to inflation after 2013. There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.  There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education.  Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.  This Obamacare cap harms these families.

Medical Device Tax begins to be assessed on January 1, 2013.  Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax.  Exempts items retailing for <$100.

“Haircut” for Medical Itemized Deductions goes into force on January 1, 2013.  Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI).  The new provision imposes a threshold of 10 percent of AGI. Waived for 65+ taxpayers in 2013-2016 only.

Third Wave: The Alternative Minimum Tax and Employer Tax Hikes

When Americans prepare to file their tax returns in January of 2013, they’ll be in for a nasty surprise—the AMT won’t be held harmless, and many tax relief provisions will have expired.  These tax increases will be in force for BOTH 2012 and 2013.  The major items include:

The AMT will ensnare over 31 million families, up from 4 million last year.  According to the left-leaning Tax Policy Center, Congress’ failure to index the AMT will lead to an explosion of AMT taxpaying families—rising from 4 million last year to 31 million.  These families will have to calculate their tax burdens twice, and pay taxes at the higher level.  The AMT was created in 1969 to ensnare a handful of taxpayers.

Full business expensing will disappear.  In 2011, businesses can expense half of their purchases of equipment.  Starting on 2013 tax returns, all of it will have to be “depreciated” (slowly deducted over many years).

Taxes will be raised on all types of businesses.  There are literally scores of tax hikes on business that will take place.  The biggest is the loss of the “research and experimentation tax credit,” but there are many, many others.  Combining high marginal tax rates with the loss of this tax relief will cost jobs.

Tax Benefits for Education and Teaching Reduced.  The deduction for tuition and fees will not be available.  Tax credits for education will be limited.  Teachers will no longer be able to deduct classroom expenses.  Coverdell Education Savings Accounts will be cut.  Employer-provided educational assistance is curtailed.  The student loan interest deduction will be disallowed for hundreds of thousands of families.

Charitable Contributions from IRAs no longer allowed.  Under current law, a retired person with an IRA can contribute up to $100,000 per year directly to a charity from their IRA.  This contribution also counts toward an annual “required minimum distribution.”  This ability will no longer be there.

Read more:
http://townhall.com/tipsheet/katiepavlich/2012/06/29/the_coming_obamatax_bomb

Remember, and this is important:

Businesses do not pay taxes.

Consumers do!

Make certain that those in your sphere of influence understand this. That includes your congressmen.