Thursday, July 23, 2009

How Millionaires Will Pay Over $500,000 in Taxes Over Ten Years for Health Care if Obamacare Approved

Watching President Obama's Press Conference on Health Care, I spent much of my time with my mouth hung open with disbelief. For fun, I decided to elaborate on one of the Commander in Cheif's answers to the question 'Have you informed Congress on how to pursue Health Care reform.' Of course he answered as if the question was "How will you pay for Health Care" were asked, but oh well, it's all politics and semantics, right?

The President stated that 2/3s of his Health Care Plan was deficit neutral because tax revenue would be shifted from one area to another. He'd make everything more efficient in order to make this happen. All right, I doubt that will work, but let's say it will to humor the President. For the rest of the answer, he touted that taxes and sacrifices will only pay for the other 1/3. Over and over again. the President referred to the 'small' 1/3 of Health Care reform that people will have to pay for. But let's take a step back...

The Health Care Reform Bill will cost approximately 1.5 Trillion dollars, right? Okay, so the 1/3 of the cost that the rich will pay has been lauded by the Pres., correct. Well, if the President can do simple mathematics, that is $500,000,000,000, or 500 Billion. Wow, that's a lot. Wait, don't freak out yet, divided by a bunch of rich people that can't be too much, right? Right?

Well, the President says that he only wants to tax those who make over one million dollars a year. Okay, sounds good, but how many people in the US make over a million bucks? Not having a net worth of one million or more, but have an annual income of $1,000,000 or more. According to Leonard Beeghley, a Professor of Sociology at the University of Florida, .9% of the richest people make $350,000 annually. Well, that's still not quiet one million, so let's say that approximately .3% of the US population makes $1,000,000. I don't know the actual number, but I'm being kind and saying .3% instead of the more likely .25 or .2%.

All right, lots of math will bring a big payoff, so just a little more... There are approximately three hundred million people living in the United States. .3% of 300,000,000 is nine hundred thousand people, or 900,000. Okay, the big payoff: the five hundred billion dollars divided by the nine hundred thousand people who would pay for it is... $555,555.56 over ten years.

So in other words, if President Obama actually gets those making more than one million dollars annually to pay for health care, they will pay approximately $560,000 each.

$560,000 each!

Yes, my fellow Americans, President Obama cannot do math if he thinks this is viable.

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Anonymous said...

So if we assume those people made ONLY 1 Million a year for ten years this amounts to a 5.6% tax increase. Doesn't sound too bad.

Mike said...

If everyone you are talking about made only a million a year, then it would be 500k per person, but since people making $100 million would pay even more than 500k, I would like to revise this figure down to say $360k for the guy just making one million a year.

So they make $10 million over ten years, and give $360k over those same ten years to pay the 1/3 that you are speaking of. That is a mere 3.6% tax hike. And that person would still enjoy an income tax rate lower than it would have been for most of the 20th century in our fine country.

Unknown said...

Bullshit title. Should say "$500k taxes on $10,000k income". 5%!

The rich should go live in other countries, like everyone claims they would. In reality they never will, the US is still by far the best place where your wealth will be preserved relative to the amount of taxes paid.

In some countries with lower taxes they'll have their heads chopped off with a machete, in others, the corrupt society and politicians will eat them alive. The US rich are like domesticated animals, let them out in the wild, and they'll be eaten alive.