Wednesday, March 04, 2009

How much is $1 trillion in deficit spending? Really?

All the conservative blogheads have been busting a nut about Obama's plan to spend $1.75 trillion this year, and $1.15 trillion next year. So, what exactly does this mean? Well, Boing Boing - a counterculture weblog posted this post of this post from some website called Econobrower. The best part is an explaination of just how big of an impact tax increases/reduction to the upper super duper rich really changes the tax burden in this country. 

Basically the article states that in 2006 the US gov't brought in about $1 trillion in taxes. So we are about to ring up $2 trillion in debt over the next two years, so we need to double our taxes right? Well it's not that simple. 

I'd also like to point out that there is only 10% of seperation in taxes between the top tax braket and my own lowly one, not to mention the article that I posted earlier about how the top 400 richest get away with a mean tax rate of 18% after deductions/loopholes. For me, I finally understand where that surplus went, into already full pockets - sweet!

From a commenter:

"I think this is really misleading since it assumes you would double all equal tax rates equally and pay for the whole thing in 1 year -- which is downright silly.

The top tax bracket is 35% - it was 92% in 1952. A tiny change in the top tax bracket (like 3%... I mean we are talking about adjusted gross income over $357K) would generate $1 trillion in revenue in only a few years. I mean you should know this since that's how we got rid of our > $1 trillion surplus. Or alter corporte income tax accounting rules to raise a miniscule amount from corporations."

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