New Tax Nightmare: Obama pitches pay-as-you-go plan for Congress

AP News Source.

WASHINGTON (AP) -- President Barack Obama is calling for Congress to pay for new increases to federal benefit programs such as health care by raising taxes or coming up with budget cuts - a "pay-as-you-go" system that would have the force of law.

The "PAYGO" plan would also require future tax cuts to be financed by tax increases elsewhere in the code, though exceptions are made for extending President George W. Bush's 2001 and 2003 tax cuts, as well as other tax cuts that are scheduled to expire.

If I am reading this correctly then what they are saying is that there will be no more tax breaks or levying of taxes. If they remove a tax then they will place a new one. What is real interesting about this is that there is no mention of the creation of new taxes. What it looks like to me is they can create any kind of new tax they want but cannot eliminate any, just rename the tax.

This is another outrageous law being pushed by this crappy administration that will only hurt the people.



[edit on 9-6-2009 by LeaderOfProgress]

The president seems motivated to act--by slippage in his poll numbers. Today's event is the second in two days to focus on rising public discontent with his economic policies (on Monday, he talked about ramping up the implementation of stimulus spending this summer).

good discussion of the plan

After forcing sooooo much spending through the congress (lower case intentional), NOW he wants responsible spending????

His poll numbers will slip even more as these news laws become hot topics in discusions around the US. These policies are only going to outrage the people more. I do not see what the administration thinks it can gain by these laws that dig deeper into the pocket of the people.

As long as He starts taxing the hell out of the people that voted for Him I'll be happy. I want to see the ignorant people that put him in crying about being taxed. Oh and before You collectivist trolls say anything about bush or Mc'Cain let me inform You that I didn't like any of those crooks I supported Ron Paul. So cry away because the tax man is coming and for once You people will know how the middle class feels with 50% taxation.

I hear he is also going to issue a tax "penalty" to those who do not have medical insurance and refuse to sign up for the new Gov't insurance plan...

The absolute audacity of this man is really starting to get to me!!

How nice of him to present this plan AFTER he spent trillions of dollars on everything he wanted to accomplish.

Further, I'd like to know what impact this is going to have on his healthcare reform (which I am opposed to anyway for various reasons).

Of course, now that I think about, my guess is that this law will allow him to pay for his entire healthcare bill.

Think about it -- his healthcare reform bill can now cost any amount of money he chooses so long as he offsets it with enough taxes to cover anyn expene. Plus, my guess is he is going to use this to justify yet another campaign promise in which he said that healthcare benefits would not be taxed. Remember people: this was a HUGE issue he used to separate himself from John McCain!!

Originally posted by LeaderOfProgress

If I am reading this correctly then what they are saying is that there will be no more tax breaks or levying of taxes. If they remove a tax then they will place a new one. What is real interesting about this is that there is no mention of the creation of new taxes. What it looks like to me is they can create any kind of new tax they want but cannot eliminate any, just rename the tax.

This is another outrageous law being pushed by this crappy administration that will only hurt the people.

[edit on 9-6-2009 by LeaderOfProgress]

You are reading it a little wrong.

It says that Congress can't pass any new spending bills without having a new tax to fund it and can't pass any tax REDUCTION bills without an offsetting tax increase.

LOL... tax reductions, under this proposal, are a thing of the past. Only increases to taxes will be allowed.

Wealth redistribution at it's finest... we're all going to be working for the government 100%. Welcome to the United Socialist States of Amerika!

[edit on 9/6/2009 by Iamonlyhuman]

reply to post by Iamonlyhuman


What you said is what I said. I'm confused on your statement that I wasn't reading it correctly.

Originally posted by LeaderOfProgress
reply to post by Iamonlyhuman

 

What you said is what I said. I'm confused on your statement that I wasn't reading it correctly.

If I am reading this correctly then what they are saying is that there will be no more tax breaks or levying of taxes.

There will be much, much, much more levying of taxes. Every act of Congress that has a cost will be offset by the levying of taxes.

reply to post by Iamonlyhuman


Isn't great? I love peachy sounding rhetoric that bares absolutely no meaning in real life.

The sad part about all this is if they re-instate PAYGO people are just going to vote the republicans back in.

I swear we have turned into a country of schizophrenics.

Pay as you go huh? A little to late now, don't you think. Where was this ideology the last couple months as trillions of dollars have been spent that we never had? ( Shaking head in disgust ) Nor will we ever see again.

reply to post by Hastobemoretolife

The sad part about all this is if they re-instate PAYGO people are just going to vote the republicans back in.

And the cycle just continues to repeat, and no new ground is ever made..all at the expense of American workers!

Looking forward to a neo-con president in 2012! Yippie.

Cripes.

I also think that the most important point of this article has been glossed over.

The Republican leadership got it right this time:

"It's as if the administration and these Democrat leaders are living in an alternate universe," said House Republican Whip Eric Cantor of Virginia. "The quickest way to save money is to stop recklessly spending it."

And as for Obama's remark:

"The fact is, there are few who aren't distressed by deficits," Obama said. He said restoring a pay-as-you-go method under law would force lawmakers to deal not just with the politics and crises of the day, but also remain fixed on the nation's long-term financial health.

I say... what about the nation's citizen's long-term financial health???

He's acting like a spoiled 10 year old boy at the toy store with his mother. Gimmee, gimmee gimmee then when after he's gotten so many toys, spent all of his mother's money and she gets really mad at him then all of a sudden he's all for fiscal responsibility. That makes his mom soften to him again.... repeat.

Totally dysfunctional...........

Paygo will only work if it is paid for by cutting spending on something else.

That will never happen, taxes will be raised to pay for something else. Judging by the massive decrease in tax reciepts recently this will also lead to higher debt.

[edit on 9-6-2009 by RRconservative]

I have an idea regarding Congress and 'Pay-As-You-Go'...

What if all Congressional members were payed 'As-You-Go'? It's basically a plan for eliminating thier salaries altogether and paying them on a commission plan directly tied to thier overall performance as regards...

1. The economy
   
2. Healthcare
   
3. Employment
   
4. Deficit reduction
   
5. Crime reduction
   
6. Constitutional adherence
   
7. Efforts in support of both lower and middle class
   
8. Individual rights
   
9. Veteran support
   
10. Elimination of corporate lobbying
    
11. Promotion of capitalism and its fundamentals (NO MORE BAILOUTS)
    
12. And add whatever else you want...
    

I have to tell you that, as far as I'm concerned, the Congressional payroll would be considerably less than the current state, based on a pay-for-performance standard.

Thoughts?

Originally posted by David9176
Looking forward to a neo-con president in 2012! Yippie.

Actually in 2012 it will probably be something along these lines:
"After looking at the economy, we have decided that an election at this time would bankrupt our Country so I am going to stay in power until we can get things back on track, but I promise you that when this crisis is over, I will step down"

reply to post by Anjin


I think you are right.....There will be a provision slipped into another bill that will remove the term limits for the president. Then, as 2012 approaches, a national economic emergency will be declared and congress will "present" the people with a COG (continuity of government) plan (probably led by a continuity czar) that will keep the muslim-in-chief in office indefinitely.

I may be the only person on ATS that hasn't minded paying my income taxes. But then, my income taxes are on the way down slightly.

What Bush did was cut taxes on the rich and then borrow money to keep the country going. He did this to the tune of trillions. With that and the war in Iraq, he is the primary one responsible for the huge debt we're in now.

The deficit run up by the Obama administration was to rescue the economy from the worst depression since the 1930's. Most responsible economists agree with what he has done. It will take time to know for sure but to all appearances the stimulus is beginning to work.

Not that Obama will get any thanks from the likes of most of you. You'll just decide that the recovery just happened all by itself.

Obama's "pay as you go" policy is reasonable and responsible. After the regrettable but necessary stimulus it is important that we as a country do not increase the deficit through tax cuts to the people who can most easily pay their taxes.

I guess most of the people who have responded to this thread are the very rich who will have to pay a little tax increase. And not even all the rich object to them. Warren Buffet has admitted that his secretary pays a higher tax rate than he does. Not to mention the fact that the very rich have tax lawyers who do nothing except find loopholes and tax shelters for them. They'll get through a little tax increase without dying I'm sure.

I have no gripe with most rich people. But I think it's time for them to step up to the plate and begin to even come close to paying the tax rate that the middle class has shouldered for so long.

The days of worshipping the rich as many ATSers and almost all Republicans have been doing are drawing to a close. We now have an administration that is responsive to the needs and hopes of ordinary Americans.