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Calculating Your Share of Proposed Obama Debt

Since President Obama promised no one earning under $250K per year would pay a dime more in taxes under his agenda this blog has published the occasional post challenging that notion. If you are still under the impression you are below Obama’s tax threshhold and will pay no more in tax, you really need to read the complete article referenced and linked below.

The excerpt of course was provided to whet your appetite.  You need to read this.

Stanford Matthews
MoreWhat.com

Finally, what of the claim not to raise taxes on anyone earning less than $250,000 a year? Even ignoring his large energy taxes, Mr. Obama must reconcile his arithmetic. Every dollar of debt he runs up means that future taxes must be $1 higher in present-value terms. Mr. Obama is going to leave a discounted present-value legacy of $6.5 trillion of additional future taxes, unless he dramatically cuts spending. (With interest the future tax hikes would be much larger later on.) Call it a stealth tax increase or ticking tax time-bomb.

What does $6.5 trillion of additional debt imply for the typical family? If spread evenly over all those paying income taxes (which under Mr. Obama’s plan would shrink to a little over 50% of the population), every income-tax paying family would get a tax bill for $163,000. (In 10 years, interest would bring the total to well over a quarter million dollars, if paid all at once. If paid annually over the succeeding 10 years, the tax hike every year would average almost $34,000.) That’s in addition to his explicit tax hikes. While the future tax time-bomb is pushed beyond Mr. Obama’s budget horizon, and future presidents and Congresses will decide how it will be paid, it is likely to be paid by future income tax hikes as these are general fund deficits.

This entry was posted on Friday, April 3rd, 2009 at 3:18 pm and is filed under Public Affairs, Money Matters, wordpress, Politics, obama, Congress. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “Calculating Your Share of Proposed Obama Debt”

  1. Perri Nelson Says:
    April 3rd, 2009 at 8:50 pm

    There’s no way it can last. Eventually the debt will reach the point where it could never be paid back even if the entire gross domestic product was used to pay the bill.

  2. Stanford Matthews Says:
    April 3rd, 2009 at 10:29 pm

    Yup, on one of my earlier posts I posed the question at what point do we reach the limit of our ability to pay back what we borrow as a country? And in that post or a similar one I quoted the 60 Minutes interview of Obama where he was asked that very question on what is our limit for borrowing. The One stated we can continue to borrow as long as someone will lend us the money. My response included the idea that his answer was exactly what got us into this mess to begin with.

    I hate ending a sentence with a preposition. :-) And I hate that those who support Obama either cannot see the light or are just fine with his dangerous agenda.