31 Mar 2011 4:50 pm
Julia
posts
Another lie, the president has put forth proposals for major cuts.Everytime a republican mentions the word "deficit" they look like such a fool b/c every single one of their heroes were for EXPLODING the deficitby pushing the Bush tax cuts for the rich to the tune of $3.9 trillion.$3.9 TRILLION.That's the name of that tune.$1.5 trillion: Total amount of wealth owned by billionaires in the U.S. $4.5 trillion: Total amount of wealth owned by billionaires in the entire world.The combined wealth of all U.S. millionaires and billionaires in 2009 is $10.7 trillion. That's not income, that's total assets. Your claim of $3.9 trillion in tax cuts is out right wrong. $3.9 trillion is 36.4% of the total value of all millionaires and billionaires in the U.S. If all the millionaires and billionaires combined earned $10.7 trillion in one year then the Bush tax cuts would have to be 36.4% change in tax rate of with the Bush tax cuts vs. without. But these millionaires and billionaires didn't earn $10.7 trillion in one year, That's their total assets combined, not annual income.In reality the doing away with the Bush tax cuts on the rich had a much smaller affect on collected taxes. Without the Bush tax cut, the federal income tax rate on millionaires is 36%. Only a 3% change. With the Bush tax cuts it's 33% On billionaires without the Bush tax cuts it's 39.6%. With the Bush tax cuts it's 35%. Only a 4.6% change. Regardless of wealth, investment taxes would have increased from 15% to 20% if the cuts expired.Lets assume most of the wealth a millionaire/billionaire earns comes from investments, since the change in investment taxes are the largest. Further, lets assume the $10.7 trillion total combined wealth of U.S. millionaires and billionaires was income for one year instead of it being a combined wealth of total assets. We will assume this so that we can tax their entire wealth not just what they earned in 1 year.5% increase in taxes on $10.7 trillion is only $535 billion. Over 5 times less then the $3.9 trillion claim you made. In reality, it's no where near $535 billion, because $10.7 trillion wasn't millionaire and billionaire income for a tax year. It is their combined asset wealth.