Redistribution of wealth

[Magox]

When Obama told Joe the Plumber that we should “spread the wealth around.” he wasn't kidding.

 

 

“It’s very clear that taxes are levied on the wealthy and the benefits will spread across the entire income distribution, with a lot going to expanded Medicaid distribution and expanding health insurance,” said Roberton Williams, an economist at the Tax Policy Center, a Washington research institute backed by the Urban Institute and Brookings Institution. “One couldn’t claim he didn’t keep that promise” to “spread the wealth around.”

 

 

 

Most of the revenue would come from higher Medicare taxes on about 1 million individuals earning more than $200,000 and about 4 million couples filing jointly who make more than $250,000.

 

The legislation would for the first time apply Medicare taxes to investment income received by these households, beginning in 2013. The 3.8 percent rate would apply to unearned income such as realized capital gains, dividends, interest, rents and royalties. It wouldn’t apply to other income subject to income taxes, including interest from municipal bonds and retirement accounts such as 401(k) plans until funds are withdrawn.

 

Obama’s budget proposes to allow the existing 15 percent tax rate on dividends and capital gains to rise to 20 percent in 2011 for the same high-earners. Layering a 3.8 percent Medicare tax on top of that would mean a new top rate on dividends and capital gains of 23.8 percent. The top tax rates on interest and rental income would rise to as high as about 44 percent, assuming other Obama tax increases on high-earners are enacted.

 

Individual’s Share

 

The bill also increases the individual’s share of Medicare tax currently imposed on salaries starting at $200,000 for individuals and $250,000 for couples to 2.35 percent, from 1.45 percent currently.

 

The combination of the new Medicare taxes and Obama’s budget proposals, if they were in place this year, would cost a married couple with a household income of $5 million an extra $287,100 in taxes, according to analysis by the consulting firm Deloitte Tax in Washington.

 

The Medicare taxes superseded an earlier Senate proposal to tax high-value employer-provided insurance coverage, dubbed “Cadillac plans.” That 40 percent excise tax was delayed until 2018, when it would begin to apply to benefits over $10,200 for individuals and $27,500 for couples.

 

Those thresholds would be indexed to inflation, which grows at a slower pace than the cost of health care, meaning more employers would likely face the levy over time.

 

Out-of-Pocket Costs

 

Other provisions likely to affect higher-income individuals would scale back tax preferences associated with paying out-of- pocket medical expenses. Starting in 2013, Americans under 65 won’t be able to deduct medical expenses until they exceed 10 percent of income, up from 7.5 percent now; retirees would keep the lower threshold.

 

The bill in 2011 places new restrictions on what can be purchased using special savings accounts funded with pre-tax dollars including health savings accounts. Improper withdrawals from the accounts also would be hit with a new 20 percent tax.

 

And the legislation for the first time would place a $2,500 limit on what can be contributed to employer-sponsored flexible spending accounts, another type of account funded with pre-tax dollars that can be used to pay for medicines, co-payments, and other expenses.

 

Employers currently set their own limits, typically between $3,000 and $5,000 in the absence of a government cap. This change would cost an average worker about $625 in tax savings, according to WageWorks Inc., a San Mateo, California, company that administers 1.5 million accounts.

 

Tanning Salons

 

Consumers who frequent tanning salons would pay a 10 percent excise tax, and those who buy devices such as wheelchairs would pay a 2.3 percent excise tax. Drugmakers may pass on a $3 billion annual fee. Insurance companies would be denied deductions when they pay their executives over $500,000.

 

Under the reconciliation bill that is now before the Senate, individuals who don’t purchase insurance would be subject to a fine of $325 in 2015 and $695 in 2016. Individuals may be subject to a charge equal to as much as 2.5 percent of their income in 2016, if the total is greater than the flat payment.

 

Employers with 50 or more workers would pay $2,000 per worker if they don’t offer health insurance. The legislation offers a small business tax credit to help pay for employer- provided premiums.

 

Companies also would face more scrutiny from the Internal Revenue Service for using tax shelters.

[Adam]

Let me guess, you prefer the form or redistribution that comes as tax breaks and trickles down. Both are redistribution of the wealth and both will happen in our country and in others.

[The Big Cat]

What if redistributed the vast majority of our wealth to a global military archipelago empire?

[murra]

Let me guess, you prefer the form or redistribution that comes as tax breaks and trickles down. Both are redistribution of the wealth and both will happen in our country and in others.

 

Yeah but trickle down is only one form that you're pointing out. It's just a phrase used to explain why not taxing heavily on the upper class will be more effective. Look at it this way, the biggest loser in the redistribution of wealth is the middle class. You spend too much time worrying about the upper class running away with your money, that you don't realize that the hard working Americans are getting their assess taxed off to pay for loads of sh*t they don't use.

[Adam]

Yeah but trickle down is only one form that you're pointing out. It's just a phrase used to explain why not taxing heavily on the upper class will be more effective. Look at it this way, the biggest loser in the redistribution of wealth is the middle class. You spend too much time worrying about the upper class running away with your money, that you don't realize that the hard working Americans are getting their assess taxed off to pay for loads of sh*t they don't use.

I am not worried about anything. I am not panicking either, nor will I. Nobody has run off with my money, nor do I expect it in the future.

 

Repeat after me- the sky is not falling

[Chef Jim]

I am not worried about anything. I am not panicking either, nor will I. Nobody has run off with my money, nor do I expect it in the future.

 

Repeat after me- the sky is not falling

 

I want you to do an exercise. Over the next month tally up everything you "give away". Income tax (state and fed) sales taxes, hotel tax, gas tax, registration fees, cell phone fees, state taxes on insurance, etc, etc, etc. At the end of the month you may think differently.

[taterhill]

I want you to do an exercise. Over the next month tally up everything you "give away". Income tax (state and fed) sales taxes, hotel tax, gas tax, registration fees, cell phone fees, state taxes on insurance, etc, etc, etc. At the end of the month you may think differently.

I have...it is mind boggling

[Chef Jim]

I have...it is mind boggling

 

And seeing I've been renting the past year I forgot the biggie....property taxes.

[Jim in Anchorage]

I want you to do an exercise. Over the next month tally up everything you "give away". Income tax (state and fed) sales taxes, hotel tax, gas tax, registration fees, cell phone fees, state taxes on insurance, etc, etc, etc. At the end of the month you may think differently.

How did you miss property tax? And school tax for people with no kids?

[Jim in Anchorage]

And seeing I've been renting the past year I forgot the biggie....property taxes.

Damn you just beat me.

[meazza]

I want you to do an exercise. Over the next month tally up everything you "give away". Income tax (state and fed) sales taxes, hotel tax, gas tax, registration fees, cell phone fees, state taxes on insurance, etc, etc, etc. At the end of the month you may think differently.

 

You would be shocked if you would see how much I have to give away.

[Booster4324]

You would be shocked if you would see how much I have to give away.

 

Candy at the schoolyard doesn't count.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I kid I kid

[meazza]

Candy at the schoolyard doesn't count.

 

 

 

 

I kid I kid

 

No worries. But seriously, you would be shocked at how much of what I make goes to funding the gov't.

 

42% income tax. 15% sales tax. And that's just the base.

[keepthefaith]

And seeing I've been renting the past year I forgot the biggie....property taxes.

 

Our current governor in Illinois, the fill-in for the departed Blago was on the radio recently and said that the propoerty tax system is not fair because it is not based on the "ability to pay". He actually tried to defend the statement. Apparently if you buy a house and your next door neighbor has one of the same value and the neighbor has a greater income, the neighbor should have a larger property tax bill.

 

Unbelievable.

[/dev/null]

What if redistributed the vast majority of our wealth to a global military archipelago empire?

 

Is Archie Pelago any relation to Mitch Peleggi?

[IDBillzFan]

Frankly I look forward to seeing how well Obama's Trickle Up Poverty Plan is going to work out.

[/dev/null]

You would be shocked if you would see how much I have to give away.

 

Candy at the schoolyard doesn't count.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I kid I kid

 

at Booster

 

Double considering meazza's rep

[keepthefaith]

Frankly I look forward to seeing how well Obama's Trickle Up Poverty Plan is going to work out.

 

It's going to send him and many members of Congress to an early retirement. Don't worry, though, they'll all have nice retirement benefits and the book deals will be great.

[PastaJoe]

I'm glad to see that votes still matter, and when the majority of voters elected Obama and the Democratic majority, health care reform was one of the reasons. They did what they were hired to do. Congrats to Obama and Pelosi for providing the leadership to get it done.

[Magox]

I'm glad to see that votes still matter, and when the majority of voters elected Obama and the Democratic majority, health care reform was one of the reasons. They did what they were hired to do. Congrats to Obama and Pelosi for providing the leadership to get it done.

They did get it done. There is no denying that, and they will forever be remembered for passing such a significant piece of legislation. But now they own it. All of it.