Taxes Will Shoot Up 30% By 2014 But Obama Wants More

The amount of money the federal government takes out of the U.S. economy in taxes will increase by more than 30 percent between 2012 and 2014, according to the Budget and Economic Outlook published today by the CBO.

At the same time, according to CBO, the economy will remain sluggish, partly because of higher taxes.

“In particular, between 2012 and 2014, revenues in CBO’s baseline shoot up by more than 30 percent,” said CBO, “mostly because of the recent or scheduled expirations of tax provisions, such as those that lower income tax rates and limit the reach of the alternative minimum tax (AMT), and the imposition of new taxes, fees, and penalties that are scheduled to go into effect.”

The U.S. economy, CBO projects, will perform “below its potential” for another six years and unemployment will remain above 7 percent for another three.

http://cnsnews.com/news/article/cbo-taxes-will-shoot-more-30-percent-over-next-2-years

 

The Budget and Economic Outlook: Fiscal Years 2012 to 2022
http://www.cbo.gov/doc.cfm?index=12699

"Revenues

Much of the projected decline in the deficit occurs because, under current law, revenues are projected to shoot up by almost $800 billion, or more than 30 percent, between 2012 and 2014—from 16.3 percent of GDP in 2012 to 20.0 percent in 2014. That increase is mostly the result of of the recent or scheduled expirations of tax provisions, such as those initially enacted in 2001, 2003, and 2009 that lower income tax rates and those that limit the number of people subject to the alternative minimum tax (AMT).

Under current law, CBO projects that revenues will continue to rise relative to GDP after 2014 largely because increases in taxpayers’ inflation-adjusted income will push more income into higher tax brackets and subject more of it to the AMT."

 

Who cares?

Taxes have no effect on productivity and job creation. Robert Reich told me so.

 

LOL. That's what we get for listening to a midget for economic advice.

 

^That midget has good company. Bill Gates and Warren Buffet are convinced tax rates have zero bearing on wealth creation. Amazing, huh? I suppose that's why the Soviet Union was such a dramatic success?

 

Were they referring to corporate tax rates, or income tax rates on the wealthiest? Were they referring to tax rates in general, or our specific rates at this time?

 

I think their statements were in regards to 1) the rich, and 2) corporations.