Truth Time: Who are these Wealthy People?!


As promised, President Obama unveiled his plan for paying for the American Jobs proposition.  It wasn’t so much of a plan of paying as it was more of a massive tax increase.  Additionally, the tax increases that he has proposed will take 10 years to fruition but he wants the money for his plan now.  Remember, he is looking for $447 Billion!!  Let’s have a look at the basics first:

  • A limit on itemized deductions and certain exemptions on individuals who earn over $200,000 and families who earn over $250,000, which would raise roughly $400 billion over 10 years.
  • A proposal to treat carried interest earned by investment fund managers as ordinary income rather than taxing it at capital gains rates, which would raise $18 billion.
  • Eliminating certain oil and gas industry tax breaks that would raise $40 billion.
  • A change in corporate jet depreciation rules that would raise $3 billion.
White House Director Jack Lew has stated that this proposal taxes the “rich” and corporations.  It was at that moment that I realized we had better figure out who these “rich” people are.   Exactly, how much do you have to make to be considered affluent in the United States?  The results may surprise you:

Individuals who earn over $200,000 and families who earn over $250,000 are the “rich” people.

In all honesty, that is not what I considered to be rich.  I was thinking something more on the lines of someone who made over a million a year.  So, I decided we needed some perspective on these numbers.  I decided to take a look at the median housing costs in the United States which I think is very telling on our income levels.  Here are the results:

  • The national median existing single-family home price was $171,900 in the second quarter
  • The median existing single-family home price in the Northeast rose 2.0 percent to $245,600 in the second quarter
  • The median existing single-family home price in the Midwest fell 5.4 percent to $139,800 in the second quarter
  • In the South, the median existing single-family home price declined 2.7 percent to $153,000 in the second quarter
  • The median existing single-family home price in the West declined 3.1 percent to $218,000 in the second quarter
It seems to me that you have to make that kind of money just to own a home, 2 cars and strollers for the kids.  Plus the costs of heating/cooling, food, and gas for those 2 vehicles.  So, the bottom line on this is if you make, as a family, over $250,000 per year you are RICH!!!  You can’t afford to go to a professional football game with your family of 4, but you are RICH!!!!  And because of this class distinction, you will be the ones who are going to foot the lion’s share of the tax increases.
I’d like to next address this idea of eliminating the tax breaks on the oil and gas producers.  So many of our jobs have left the United States for more tax favorable climates overseas.  As we already know, a great deal of our businesses have gone overseas because the cost of doing business here is just too expensive.  Therefore, it doesn’t make an ounce of sense to me to eliminate the tax breaks on ANY company that is still here and employing people.  If those companies like BP leave the gulf in search of better business opportunities they don’t have to go far.  Indeed, Venezuela is one of them.  In Arkansas, finding the Natural Gas reserves has led to a booming economy in these unsettled times.  Housing prices are good and people are working.  What happens when there is no longer a favorable business climate for those companies.   I suppose unemployment would begin to skyrocket, housing foreclosures would begin and Arkansans would find themselves in much the same shape as those of us in Nevada.  Not to mention, driving these businesses out will significantly increase the price per gallon of gas and our heating bills.
It is true that the devil is in the details and we have some really ugly demons here.  I thought it was suspicious when Obama kept saying “pass this bill” over and over again.  He was hoping to pressure congress into not reading the bill but just getting it done.  Also, if this bill gets blocked by either the Senate or the House, he can blame it on partisan bickering and NOT on the reality that it’s just all wrong.  In short, it’s more of the same game.
For additional information:
http://www.realtor.org/press_room/news_releases/2011/08/metroprice_q2
http://www.cnbc.com/id/44488639
http://www.foxnews.com/politics/2011/09/12/obama-jobs-plan-puts-strain-on-deficit-committee/?intcmp=obinsite
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2 Comments (+add yours?)

  1. Joe Rohaly
    Sep 14, 2011 @ 15:28:16

    Someone with some common sense analyzes the new “American Jobs Bill.”

    Reply

  2. Grumpa Joe
    Sep 14, 2011 @ 15:25:58

    Excellent analysis of the “rich.” Liberals want everyone’s money so they can decide how to spend it. Imagine a society in which everyone worked for the government. From where would the money come to pay them all?

    Reply

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