Obama’s Tax Hikes Would Mean Some Americans Would Pay More In Taxes Than They Keep

• July 2, 2008

Of course, it’s just rich Americans like Tiger Woods and Alex Rodriguez, so who cares right?

It was fortunate for Tiger that his most-recent U.S. Open win occurred in 2008. Under twin tax proposals from Obama to 1) remove the “cap” from Social Security taxes for individuals earning over $250,000, a plateau Tiger has long since surpassed in 2008, and 2) eliminate the “Bush” tax cuts, thereby raising the top marginal federal income tax rate to 39.6 percent, Tiger’s taxes on his winner’s check would have increased to approximately $776,000, a boost of almost $190,000. Instead of Tiger keeping 57 percent of his earnings and the government taking 43 percent, under the twin Obama tax proposals, Tiger’s federal and California taxes would have amounted to 57 percent of his winnings, leaving Tiger with just 43 percent.
Prefer baseball to golf?
The New York Yankees have a 2008 payroll of approximately $208 million. Under the twin Obama tax proposals, the 24 Yankee players would be hit with an aggregate increase in federal income taxes of just over $22 million, with slugger Alex Rodriguez single-handedly getting dunned with $2.6 million in additional federal taxes.

According to Democrats we’re not supposed to care when rich people face unfair levels of taxation, but it’s worth noting that this high level of taxation has ramifications for we little people too:

The owner of the Yankees would owe an additional $7.5 million of federal taxes. Ticket prices would need to be increased by about $65 million so that the owner and players could have the same after-tax income as before. The increase in ticket prices would amount to an average $16 per ticket. Given that the least-expensive ticket in Yankee Stadium currently is $14, this would more than double the cost of a seat in the bleachers.

Tax big business and/or taxing “the rich” actually hurts us all. Because most of us buy products from big businesses and/or sell products to or do work for “the rich.” When big business has to pay more in taxes they pass that expense on to us in higher prices. When “the rich” have to pay more in taxes they have less money available to spend on the products and services provided by people who aren’t rich.
Excessive taxation, no matter which demographic its aimed at, hurts us all.

Tags: Domestic Issues, Politics

http://Array Texan Across the Pond

Paying more in taxes than you get to keep? That defines SLAVERY and Brother if you don’t think your close to paying 50% or more of your income in taxes, do some math and add up all the federal, state, local, property, school, county, city, sales, gasoline taxes and “fees” such as registration, licences, toll and others I can even think of right now. Even if your income is in thee bottom 25% of income earners, you pay no less than 40% in taxes. We are all a breath away from being slaves to the State.
http://www.valleydeals.com/cgi-bin/board2/YaBB.pl Kevin

Paying more in taxes than you get to keep? That defines SLAVERY

…or prostitution with the government playing the part of the pimp.
jpe

If the baseball argument is correct, taxes should be directly correlated with inflation. And I strongly doubt that’s the case, since tax hits both sides of the ledger (Steinbrenner wants to charge more, but people will be equally unwilling to pay more)
Brainmaggot

well its the socialist / communist way what where you expecting we are about to loss our country forever the bill of right will be gone within the first year and that means i wont be able to say i told you so.
http://ndgoon.blogspot.com/ goon

Oh, I think people should be very scared if McCain doesn’t win.
http://proof-proofpositive.blogspot.com/ proof_positive

Ask not for whom the tax bell tolls, it tolls for thee.

lik: Are you implying that if Obama is elected, we’re all Donne?
jpe

There are obviously other arguments against raising taxes (and I agree that the moral argument against 50% tax rates is a winner, absent extraordinary circumstances); I was just pointing out that argument from inflationary effects seems like a non-starter.
http://sayanythingblog.com/ likwidshoe

Ask not for whom the tax bell tolls, it tolls for thee.
http://sayanythingblog.com/readers/author/Anna/ Anna
FlyOnTheWall

The richer will shift to tax free but lower payout investment strategies until it hits some equilibrium. Now most of those tax free investments will be various city and state bonds. The alternative is investing in places that do and make things and employ gobs of people.
http://sayanythingblog.com robport

The question, jpe, is why should we raise taxes and add friction to the already fragile economy without any demonstrated need for additional government revenue?

Seems to me that before Obama talks about raising taxes he should make it clear that there’s no wasteful spending that can be cut first.

And then there’s the question of the morality of the government taking more than half of a person’s income. I don’t care how rich you are, that’s just wrong.

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Obama’s Tax Hikes Would Mean Some Americans Would Pay More In Taxes Than They Keep

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