More than $130B in new government fees pepper Obama deficit plan
via Yahoo! Finance
It’s not just millionaires who’d pay more under President Barack Obama’s latest plan to combat the deficit.
Air travelers, federal workers, military retirees, wealthier Medicare beneficiaries and people taking out new mortgages are among those who would pay more than $130 billion in government revenues raised through new or increased fees.
Airline passengers would see their federal security fees double from $5 to $10 for a nonstop round-trip flight and triple to $15 by 2017, raising $25 billion over the coming decade. Federal workers would face an additional 1.2 percentage point deduction from their paychecks to contribute $21 billion more for their pensions over the same period. Military retirees would pay a $200 fee upon turning 65 to have the government pay their out-of-pocket Medicare expenses. They’d also pay more for non-generic prescription drugs.
And it’ll cost corporate jet owners a new $100 fee for each flight.
The fees aren’t taxes. They’re charged to people who use government services or receive benefits such as taxpayer-subsidized health care, and they typically defray the government’s cost of providing a service. The fee on corporate jets and other private passenger planes, for example, would raise about $1 billion a year to help finance the cost of air traffic control. Recreational flyers won’t have to pay.
Many of Obama’s proposals are retreads from earlier budget proposals, including those submitted by his predecessors. Most have been rejected year after year. Some ideas, like requiring wealthier veterans to pay more for their health care, stir up opposition from powerful interest groups. Others, like the bigger security fee for flyers, seem too close to a ticket tax increase.
Administration budget documents describe the fees as savings.
But unlike Obama’s tax proposals, the new fees aren’t necessarily dead on arrival with Republicans…
The article continues at Yahoo! Finance.
H/T Weasel Zippers
Senator Chuck Schumer is fine with President Obama’s tax hike on millionaires. Just not a tax hike on millionaires that live in his state.
Senators Charles Schumer of New York, Robert Menendez and Frank Lautenberg of New Jersey all support the millionaire’s tax.
Menendez, Lautenberg and Kirsten Gillibrand support eliminating some or all of the Bush tax cuts. Schumer said the $250,000 limit is unacceptable since it will hit the metropolitan area disproportionately because of the high cost of living here…
Since When Is 1% of Americans Paying 38% of Federal Taxes Not A “Fair Share?”
Let’s not kid ourselves. President Obama’s new plan to soak the rich is not about producing jobs. It’s not even about “raising revenues.” It really is about redistributing wealth while at the same time feeding the jealousy of the non-rich. Here’s why…
…“In 1960, national defense was the government’s main job; it constituted 52 percent of federal outlays. In 2011–even with two wars–it is 20 percent and falling. Meanwhile, Social Security, Medicare, Medicaid and other retiree programs constitute roughly half of non-interest federal spending.” …
…Unfortunately, $410 billion is “only” about 7% of the deficit we expect to incur over the next ten years. That is not an inconsequential portion but considering the debate surrounding hiking tax rates by any amount, let alone generating an increase sufficient see a seven percentage point increase in taxes paid, as well as the negative consequences such a sharp adjustment would engender, this hardly seems to be the “only” place to go to achieve debt reduction…
Common American Journal welcomes readers from Hump Day Report where there’s an excellent chart, Who Pays Income Taxes and How Much? While you’re there, also check out, AP fact check: Secretaries don’t pay more taxes than their bosses. Don’t be duped by class envy, People!