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  1. #11
    null Jonny's Avatar
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    Default Highlights of the White House / GOP Budget Plans

    http://news.yahoo.com/highlights-whi...--finance.html

    TAXES

    Obama: Increase taxes by $1.6 trillion over 10 years, raised by permitting tax rates on individual income exceeding $200,000 and family income over $250,000 to return to Clinton-era levels of 36 and 39.6 percent, up from 33 and 35 percent now. Increase taxes on dividend income and reduce the value of deductions and exemptions for those earning above $200,000 and 250,000. Renew the 2 percentage point payroll tax holiday or a similar tax cut for workers. Return taxes on large estates to 2009 levels. Permits tax reform to replace the existing code so long as it maintains the $1.6 trillion tax hike.

    House GOP: Increase taxes by $800 billion over 10 years, raised through a comprehensive overhaul of the tax code that would curb various unspecified tax breaks while lowering tax rates overall. Extend all expiring Bush-era tax cuts on income, investments, married couples and families with children. Maintains the estate tax at current, more generous levels exempting estates up to $5.1 million from tax and sets a top rate of 35 percent. Permits payroll tax cut to expire.


    HEALTH CARE

    Obama: Cut $350 billion over 10 years from federal health care programs Medicare and Medicaid, including lower Medicare drug costs and other cost curbs on health care providers.

    House GOP: Cut $600 billion over 10 years. Includes unspecified cuts to health care providers and assumes an increase in the eligibility age for Medicare and increased Medicare costs for higher-income beneficiaries.


    OTHER SPENDING CUTS

    Obama: Cut the deficit by $250 billion through other spending cuts and new fees. Options include requiring federal workers to contribute more to their retirement, cut farm subsidies, increase airline security fees, overhaul Postal Service operations, and increasing fees on some enrollees in the military's Tricare health care plan. Leaves in place existing "caps" on agency budgets passed by Congress each year.

    House GOP: Deficit cuts of $300 billion through such cuts and fees from miscellaneous programs. Cut another $300 billion over the decade from agency operating budgets.


    GOVERNMENT INFLATION MEASURE

    Obama: No proposal.

    House GOP: Reduce deficits by $200 billion over 10 years by replacing the current inflation adjustment for Social Security and income tax brackets with a less generous "chained CPI" that, on average, is 0.3 percentage points less than the current measure. Doing so would reduce Social Security cost-of-living increases and cause a greater portion of taxpayer income to be taxed at higher rates.


    NEW SPENDING

    Obama: $200 billion in new economic "stimulus" initiatives, including payroll tax cuts, continued write-offs of business equipment purchases, extended unemployment benefits, help for borrowers "under water" on their mortgages, and new spending on infrastructure.

    House GOP: No proposal.


    DEBT LIMIT

    Obama: Permit the president to obtain increases in the government's borrowing cap, currently set at $16.4 trillion, without approval by Congress.

    House GOP: Retain longstanding requirement that debt limit increases be enacted by Congress.
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  2. #12
    ^He pronks, too! Magic Poriferan's Avatar
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    Jonny, you seem to be a much better data miner than me, perhaps you can do something with taxes.

    I was finding myself rather frustrated in getting relevant tax information. For example, I was struggling to find the total amount of revenue in dollars extracted from top 10% earners through the individual income tax. There are plenty of other things.

    What I would love to see is a bare bones layout of tax information comprehensive enough that everyone here could basically invent their own tax plan with it. I think that'd be a pretty helpful tool for a lot of the discussion that take place here.
    Go to sleep, iguana.


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  3. #13
    null Jonny's Avatar
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    Looking only at the tax proposals, I'm a bit confused about the tax reforms proposed by the GOP. To the extent that a tax structure deviates from a flat tax on all income, the purpose is essentially to redistribute the burden onto different subgroups of the population, either for welfare/poverty/subsistence purposes or to incentivize certain behaviors. With the White House's plan, the groups targeted are individuals (married couples) making more than $200,000 ($250,000) per year, people with dividend income, and people with large value inheritance. The purpose seems to be to meet the spending needs without burdening the lower income groups (middle / low classes). The secondary effects, as the GOP points out, are potential incentives to reduce investment and contract businesses.

    The GOP seems to reject the idea of raising taxes on the wealthy (including about 2-3% of small businesses) due to the secondary effects I touched on above. Their proposal is to remove loopholes and tax breaks from the tax code, which is expected to generate about half the revenue of the White House plan. Now, if they were only concerned with the dollar amount of the tax increase proposed by the White House, they could simply reduce the rate increases on the groups already being affected by the White House proposal (e.g. keeping the burden distribution the same, but lessening the degree of burden). So, it stands to reason that the changes proposed by the GOP might shift the burden to other population groups. If they don't, then the GOP proposal is simply a way of increasing taxes on the wealthy without explicitly doing so. My question is, upon whom will the burden of these $800 billion in tax increases fall? What incentives, both intended and secondary, are likely? If anyone has additional info on the specifics of these changes I'd be interested to hear it. If you know of a website that has the details, send it my way and I can spend some time parsing the verbiage and getting some useful info.
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  4. #14
    null Jonny's Avatar
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    @Magic Poriferan

    The following income percentile graphs were generated using data from the Current Population Survey (CPS) for 2011 found here, and from the SOI Tax Stats for 2009 released by the IRS found here. Because the census data includes a large number of individuals reporting no income, I adjusted the data using log-normal projection estimates for income lower than $5,000 per year.

    As expected, Married units have substantially higher income, which is reflected by lower percentiles at each level of income. Further, due to the fact that married units are reported as two separate individuals in the census data (and married people tend to have higher wages, on average), the adjusted census percentiles for individuals are lower than those reported by individual filers in the IRS data, as one would expect (the census data is used as a sort of logic check of the breakdowns provided by the IRS).

    Should this data be acceptable to you, I can generate tables with percentiles at various income levels by filing status, so that you can craft marginal tax rates and special considerations.







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  5. #15
    ^He pronks, too! Magic Poriferan's Avatar
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    [EDIT] Never mind the original question, I got it.

    Yes, I find that graph acceptable.
    Go to sleep, iguana.


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  6. #16
    null Jonny's Avatar
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