The government’s budget counts on an additional $1 trillion in new taxes.
Bloomberg did the analysis, noting that the new increases are leveled primarily on the rich:
Obama’s 2010 budget proposal, released today, would reinstate the top two Clinton-era tax rates of 36 per cent and 39.6 per cent in 2011, up from the 33 per cent and 35 per cent the richest Americans now pay. It would raise taxes on capital gains and dividends to 20 per cent for top earners, up from the 15 per cent set by former President George W. Bush in 2003.
The tax increases, which Obama vowed to impose as a presidential candidate, would be the first on high-income earners since 1993 and would reverse a course set by Bush of lowering the tax burden on the nation’s wealthiest people.
We wonder: what kind of assumptions are they making about the rich, and how much money they’ll have? Are they factoring in a total collapse of Wall Street incomes, or just a moderate one? Not sure yet on that, but given the government’s inclination towards optimistic forecasts, we have a hard time believing that they’ll get as much as they think they are.
Plus, as CNBC’s Bill Siedman noted this morning, the rich usually find away to dodge taxes. Boom times for accountants coming up!