The nitwits at CPAC are running around, claiming that Obama’s, well, everything is sending us down the dark path of socialism (although Henry Paulson and George Bush did pretty well on that score. Got TARP?). But these claims are ridiculous–and to some conservatives’ credit, they understand this. Consider what a household that earns $500,000 per year (roughly ten times the median household income) would pay in taxes under the Obama plan:
If Obama’s tax plan is approved, a family making $500,000 a year would see its annual tax bill rise to nearly $132,000 from about $120,000, a 10 percent increase, said Clint Stretch, managing principal of tax policy at Deloitte Tax.
Let me rephrase that: if Obama’s
COMMUNISMZ!!! tax plan is approved, a family making $500,000 a year would ‘only’ keep 73.6% of its income ($368,000), as opposed to 76% of its income currently ($380,000).
This is socialism?
This is communism?
Does this mean that keeping 75% of income would be a very liberal social democracy?
This is a joke. We have bills to pay, and in the long run, we’re all going to probably have to lower our standard of living for a while. But $368,000 isn’t chump change (and, yes, I realize other taxes have to be paid too). It’s still much, much more than most households’ pre-tax income.
But then there’s this horror story:
Hedge fund managers would take an even bigger hit. Much of their multimillion-dollar earnings would be taxed as regular income rather than capital gains, causing their tax rate to rise from 15 percent to as much as 39.6 percent.