Tag Archives: Capital Gains Tax

The Republican alternative budget

Tired of trillion dollar deficits as far as the eye can see? Worried that Obama is going to bankrupt the country? Angry about the planned reduction of charitable giving by 9 billion dollars? Or tax hikes on energy companies that will raise consumer energy prices? Are you doubtful that any amount of tax hikes on the productive sector can pay for all this spending?

Well, I spotted this post outlining the Republican alternative to Obama’s budget over at Investors Business Daily. (H/T Club for Growth)

This is definitely worth reading! The first part reiterates how tax cuts have stimulated the economy and job creation in the past under Ronald Reagan and George W. Bush. The article then list all the details of the GOP budget proposal which would get us similar results.

Instead of socialized medicine, the GOP would lower prices by increasing consumer choice and competition among medical plan suppliers. And they would also introduce a simplified tax system that would reward hard work and productivity:

…[The GOP budget] would establish “a simple and fair tax code with a marginal tax rate for income up to $100,000 of 10%, and 25% for any income thereafter, with a generous standard deduction and personal exemption.”

Prefer the current system? The GOP plan lets you stay in it. The capital gains tax would be cut and the Alternative Minimum Tax would be fixed to prevent huge surprise tax hikes each year.

…businesses with fewer than 500 employees would get a deduction of 20% of their income, so “these engines of growth will continue to fuel our economic recovery and companies can compete with their foreign counterparts, while keeping jobs here at home.”

On energy policy, the plan would open the Outer Continental Shelf to oil and gas drilling and use part of the federal share of revenues for alternative fuel programs. The Arctic Coastal Plain would be opened for exploration and development. Obstacles to new nuclear power plants would be removed.

Read the whole wonderful thing! And don’t forget: they have a podcast of this article read by the professionals at OutloudOpinion.com. Subscribe here!

Obama introduces cap and trade scheme in budget

I was browsing over at Nice Deb and found this story about the budget that really upset me. I am really beginning to fear for the future of the American economy. I don’t think we can handle all of these bad decisions in such a short period. We may be looking at a new Depression.

Nice Deb cites this article from Human Events as follows:

The Department of Energy estimates that S. 2191, the Warner-Lieberman cap-and-trade proposal, will increase the cost of coal for power generation by between 161% and 413%. DOE estimates GDP losses (see chart) over the 21-year period they forecast, at between $444 billion and $1.308 trillion, with particular damage to the manufacturing sector…

Winegarden estimates that this bill could increase unemployment by 2.7% or about 4 million jobs. In fact, companies are already preparing to avoid increased level and volatility of American energy prices by setting up factories and partnerships in countries which won’t be subject to cap-and-trade restrictions…

In addition, we can expect 1 trillion dollars in new taxes. Here are the individual tax hikes from an ABC News article that Nice Deb links to in her post:

On people making more than $250,000:

$338 billion – Bush tax cuts expire
$179 billlion – eliminate itemized deduction
$118 billion – capital gains tax hike

Here are some of the tax hikes on businesses from the same post. I picked the ones that are specifically going to affect energy production.

$5.3 billion – excise tax on Gulf of Mexico oil and gas
$3.4 billion – repeal expensing of tangible drilling costs
$62 million – repeal deduction for tertiary injectants
$49 million – repeal passive loss exception for working interests in oil and natural gas properties
$13 billion – repeal manufacturing tax deduction for oil and natural gas companies
$1 billion – increase to 7 years geological and geophysical amortization period for independent producers

Oil and gas? Isn’t that what people use to heat their homes and power their vehicles?

UPDATE: The Anchoress says that the price hikes on individuals making $250,000 or more also apply to small businesses, as well as individuals! Bye-bye jobs!