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