Happy tax day!
Despite the fact that the federal government is now raking in more tax dollars than ever before, there is still a huge deficit because federal spending is so out of control. President Obama’s budget calls for trillions in new taxes, but still would barely put a dent in deficit spending. His budget never balances. But it would help his cronies, while putting even more burdens on small businesses.
Nowhere is awe and amazement in greater abundance than in Obama’s tax proposals. The President highlights his renewed attempts to raise $583 billion in new taxes on investors, savers, small businesses, and upper-income taxpayers generally. But according to the Treasury Department’s documentation of the President’s budget, the net tax hike is $1.1 trillion. Even then there’s a caveat: A footnote in the Treasury document refers to additional tax hikes included in the budget’s revenue tables.
The discrepancy between the tax hikes the President touts and the total of his tax package is especially material in light of his claim that the $1.8 trillion in deficit reduction in his budget relies on $2 in spending cuts for every $1 in tax hikes. This statement is clearly false when the budget includes $1.1 trillion in tax hikes. …
Obama’s budget calls for closing loopholes, and he has proposals to do so, identifying specific items to which he objects, such as normal tax treatment for fossil fuel production. Then one scans the pages to see that rather than clean up the tax code by eliminating loopholes, the President would merely replace one set of provisions to which he personally objects with another set which he personally favors, such as a new tax credit for alternative-fuel commercial vehicles. This is a perfect example of how the tax code got into the mess it’s in today—politicians using the tax code for their pet projects. (Read More)
Then there are the new taxes he’s already imposed on the American people and the economy.
Americans pay high taxes as it is, and with the 13 tax increases that hit this year, tax revenue is growing beyond its historical average as a share of the economy. But Washington’s deficits continue, because spending keeps going up.
Future Tax Days promise to be even worse because of the tax increases from the fiscal cliff deal and from Obamacare. Taxpayers will start seeing these costs when they do their tax returns next April and in future years.
In addition to the taxes we pay, there’s also the cost of complying with the tax code.
According to the federal Taxpayer Advocate in its 2012 report, Americans’ cost of complying with today’s complex tax code totaled $168 billion in 2010. That’s almost as large as the impact of the Obama tax hikes in fiscal year 2013, and twice the size of sequestration this year [see chart].
It takes taxpayers 6.1 billion hours—or 51 hours per household—to complete all the required filings. That’s more than six full eight-hour working days per household! (Read More)
While much of the budget is eaten up by Social Security and Medicare, here’s a video highlighting some of the ridiculous ways the government wastes our money.