I love the premed students justifying these tax rapes.
Anyways, the main issue I have is one of total intellectual dishonesty on the part of Obama. Keynesian economic theory on fiscal policy basically states four things (yes oversimplification). During a recession you run deficits by 1). CUTTING TAXES and 2). Increasing Government spending. During good times you are supposed to make up those deficits and pay down the debts with surpluses by 3). Raising taxes and 4). Cutting spending....
Now the entire basis of this super rushed unparalleled stimulus package was that we needed a fiscal stimulus policy because we are in a recession/depression. Now why the hell would you counteract your own theory to rush something without discussion by RAISING taxes drastically? And this is not an across the board tax raise such as letting the Bush tax cuts expire, it is a selective tax raise that only targets people who have mortgages, and make large charitable contributions.... Why the hell would you want to in this market discourage people from buying homes and donating to charity???
And to that premed who doubts 50% tax watch this.... 39% federal tax bracket + 1.45% medicare tax + 6% state income tax + 6.2% soc sec (yes there is currently a cap, but ask any attending physician in his thirties if they expect even 10 cents on the dollar back from what they pay into that Sh*^T hole of a program and I bet you know what the answer will be)... That right there is 52.65%. Now add in the tax on charitable contributions and mortgages, and if you even have $50,000 in schedule A deductions (well under average for the top income bracket) That is another $5500 in taxes a year alone (39% of $50000 is $19,500, 28% of $50,000 is $14,000, and $19500-$14000 = $5500)... Guess what percentage of US citizens even pays $5500 in federal income tax a year?
I am using this data as shown on the noprofit taxfoundations website for 2006. You better believe with the way the tax rebate of 2007 encouraged low income filers to get their free govt check the 2007 data will be far more scewed.
http://www.taxfoundation.org/news/show/250.html
The bottom 50% of income tax filers only paid an average of $963 total income tax. The 3rd quartile of income tax filers (AGI of 50-75%) average a total income tax burden of $3243. That means the tax increase being talked about here above and beyond what Obama already promised is well over what around 60% of the county pays in total taxes... AND ALL THIS DURING A RECESSION....
I think even John Maynard Keyes would roll over in his grave.