By Susan Duclos
The
U.S. Bureau of Economic Analysis has released it's report which shows U.S. economic growth is below previous estimates.
Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 2.2 percent in the first quarter of 2012 (that
is, from the fourth quarter to the first quarter), according to the "advance" estimate released by the
Bureau of Economic Analysis. In the fourth quarter of 2011, real GDP increased 3.0 percent.
There will be predictable spin on this from Obama supporters and liberals across the Internet. They will say, this isn't good but it is better than what estimates back in December said it would be which was around 1.8%.
That is true, but when the economy appeared to pick up and growth rated was estimated at 2.7%, Obama and company touted it as "
the economy is growing" and words like the economic growth is "speeding up" were bandied about, despite warnings that the pattern upward would stall, go down again, up again and hold no consistent growth trend.
They will also say,
they already are, "don't get too worried" this is just the first pass and it could be adjusted upward or downward... later on.
More spin will come as Barack Obama predictably will go on and on about "The Buffet Rule", raising taxes which he has touted as a fix-all for the economy.
Via
CBS earlier this month:
(CBS News) Expanding on his reasons to support the "Buffett Rule,"
President Obama said it is "not just about fairness" but economic
"growth" as well. (Watch in video above.)
"Now, this is not just about fairness. This is also about growth," the president said in his weekly address.
"It's about being able to make the investments we need to strengthen
our economy and create jobs. And it's about whether we as a country are
willing to pay for those investments."
Raising taxes is about growth says Obama. Pretty clear statement and one we have heard from Obama, Democrats and liberals consistently.
Obama knows better. Obama has known better from the start of his term.
Forbes contributor Charles Kadlec
brings attention to Obama's first Chair of his Council of Economic Advisers (CEA), Christina D. Romer, who chaired the CEA from January 28, 2009 – September 3, 2010.
In a paper entitled: “The Macrcoeconomic Effects of Tax Changes” published by the prestigious American Economic Review in June 2010 (during her tenure at the White House),
she stated: “In short, tax increases appear to have a very large,
sustained, and highly significant negative impact on output.”
This is the complete opposite of what we have been hearing over and over again from the Obama administration as he continues to try to pit one group of people against another with his class warfare rhetoric.
Now let's take a look at the tax hikes we have seen already from the Obama administration.
There is a list of 21 of them, some have gone into effect and some are not due to go into effect until January 2013, coincidentally,
after Obama's bid for reelection in November 2012.
Dividing them into two groups. Those that have already been implemented and those due to be implemented. (Unless the Supreme Court strikes down Obamacare aka PPACA, since most are embedded into Obama's health care law)
1. A 156 percent increase in the federal excise tax on tobacco: On February 4, 2009, just sixteen days into his Administration, Obama
signed into law
a 156 percent increase in the federal excise tax on tobacco, a hike of
61 cents per pack. The median income of smokers is just over $36,000
per year.
7. Obamacare Medicine Cabinet Tax (Tax hike of $5
bil/took effect Jan. 2011): Americans no longer able to use health
savings account (HSA), flexible spending account (FSA), or health
reimbursement (HRA) pre-tax dollars to purchase non-prescription,
over-the-counter medicines (except insulin).
Bill: PPACA; Page: 1,957-1,959
8. Obamacare HSA Withdrawal Tax Hike (Tax hike of $1.4
bil/took effect Jan. 2011): Increases additional tax on non-medical
early withdrawals from an HSA from 10 to 20 percent, disadvantaging them
relative to IRAs and other tax-advantaged accounts, which remain at 10
percent.
Bill: PPACA; Page: 1,959
12. Obamacare Tax on Indoor Tanning Services (Tax hike of $2.7 billion/took effect July 2010): New 10 percent excise tax on Americans using indoor tanning salons.
Bill: PPACA; Page: 2,397-2,399
14. Obamacare Blue Cross/Blue Shield Tax Hike (Tax
hike of $0.4 bil/took effect Jan. 1 2010): The special tax deduction in
current law for Blue Cross/Blue Shield companies would only be allowed
if 85 percent or more of premium revenues are spent on clinical
services.
Bill: PPACA; Page: 2,004
15. Obamacare Excise Tax on Charitable Hospitals
(Min$/took effect immediately): $50,000 per hospital if they fail to
meet new "community health assessment needs," "financial assistance,"
and "billing and collection" rules set by HHS.
Bill: PPACA; Page: 1,961-1,971
16. Obamacare Tax on Innovator Drug Companies (Tax
hike of $22.2 bil/took effect Jan. 2011): $2.3 billion annual tax on the
industry imposed relative to share of sales made that year.
Bill: PPACA; Page: 1,971-1,980
19. Obamacare Employer Reporting of Insurance on W-2 ($min/takes effect Jan. 2012): Preamble to taxing health benefits on individual tax returns.
Bill: PPACA; Page: 1,957
20. Obamacare “Black liquor” tax hike (Tax hike of $23.6 billion/took effect immediately). This is a tax increase on a type of bio-fuel.
Bill: Reconciliation Act; Page: 105
21. Obamacare Codification of the “economic substance doctrine”
(Tax hike of $4.5 billion/took effect immediately). This provision
allows the IRS to disallow completely-legal tax deductions and other
legal tax-minimizing plans just because the IRS deems that the action
lacks “substance” and is merely intended to reduce taxes owed.
Bill: Reconciliation Act; Page: 108-113
To Be Implemented in 2013
4. Obamacare Surtax on Investment Income (Tax hike of $123 billion/takes effect Jan. 2013):
Creation of a new, 3.8 percent surtax on investment income
earned in households making at least $250,000 ($200,000 single). This
would result in the following top tax rates on investment income:
Bill: Reconciliation Act; Page: 87-93
6. Obamacare Hike in Medicare Payroll Tax (Tax hike of $86.8 bil/takes effect Jan. 2013): Current law and changes:
Bill: PPACA, Reconciliation Act; Page: 2000-2003; 87-93
9. Obamacare Flexible Spending Account Cap – aka “Special Needs Kids Tax”
(Tax hike of $13 bil/takes effect Jan. 2013): Imposes cap on FSAs of
$2500 (now unlimited). Indexed to inflation after 2013. There is one
group of FSA owners for whom this new cap will be particularly cruel and
onerous: parents of special needs children. There are thousands of
families with special needs children in the United States, and many of
them use FSAs to pay for special needs education. Tuition rates at one
leading school that teaches special needs children in Washington, D.C. (
National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education
. Bill: PPACA; Page: 2,388-2,389
10. Obamacare Tax on Medical Device Manufacturers (Tax
hike of $20 bil/takes effect Jan. 2013): Medical device manufacturers
employ 360,000 people in 6000 plants across the country. This law
imposes a new 2.3% excise tax. Exempts items retailing for <$100.
Bill: PPACA; Page: 1,980-1,986
11. Obamacare "Haircut" for Medical Itemized Deduction from 7.5% to 10% of AGI
(Tax hike of $15.2 bil/takes effect Jan. 2013): Currently, those facing
high medical expenses are allowed a deduction for medical expenses to
the extent that those expenses exceed 7.5 percent of adjusted gross
income (AGI). The new provision imposes a threshold of 10 percent of
AGI. Waived for 65+ taxpayers in 2013-2016 only.
Bill: PPACA; Page: 1,994-1,995
13. Obamacare elimination of tax deduction for
employer-provided retirement Rx drug coverage in coordination with
Medicare Part D (Tax hike of $4.5 bil/takes effect Jan. 2013)
Bill: PPACA; Page: 1,994
To Be Implemented in 2014
2. Obamacare Individual Mandate Excise Tax (takes
effect in Jan 2014): Starting in 2014, anyone not buying “qualifying”
health insurance must pay an income surtax according to the higher of
the following
|
1 Adult |
2 Adults |
3+ Adults |
2014 |
1% AGI/$95 |
1% AGI/$190 |
1% AGI/$285 |
2015 |
2% AGI/$325 |
2% AGI/$650 |
2% AGI/$975 |
2016 + |
2.5% AGI/$695 |
2.5% AGI/$1390 |
2.5% AGI/$2085 |
Exemptions for religious objectors, undocumented immigrants, prisoners,
those earning less than the poverty line, members of Indian tribes, and
hardship cases (determined by HHS).
Bill: PPACA; Page: 317-337
3. Obamacare Employer Mandate Tax (takes effect Jan.
2014): If an employer does not offer health coverage, and at least one
employee qualifies for a health tax credit, the employer must pay an
additional non-deductible tax of $2000 for all full-time employees.
Applies to all employers with 50 or more employees. If any employee
actually receives coverage through the exchange, the penalty on the
employer for that employee rises to $3000. If the employer requires a
waiting period to enroll in coverage of 30-60 days, there is a $400 tax
per employee ($600 if the period is 60 days or longer).
Bill: PPACA; Page: 345-346
Combined score of individual and employer mandate tax penalty: $65 billion/10 years
To Be Implemented in 2018
5. Obamacare Excise Tax on Comprehensive Health Insurance Plans
(Tax hike of $32 bil/takes effect Jan. 2018): Starting in 2018, new 40
percent excise tax on “Cadillac” health insurance plans ($10,200
single/$27,500 family). Higher threshold ($11,500 single/$29,450
family) for early retirees and high-risk professions. CPI +1 percentage
point indexed.
Bill: PPACA; Page: 1,941-1,956
Now let's go back to what Obama's first Chair of his Council of Economic Advisers (CEA), Christina D. Romer, said, while she was still working for Obama:
“In short, tax increases appear to have a very large,
sustained, and highly significant negative impact on output.”
Barack Obama has presided over the
worst recovery in history and it was his own policies that guaranteed that dubious place in historical recoveries.
Yet it is 100% assured that Barack Obama will tell Americans during his reelection campaign, that raising taxes is about "growth."