Read Crimes Against Liberty for Free Online

would eventually bankrupt the nation, but when President Bush tried to reform Social Security, they engaged in scaremongering to downplay any problems and successfully shut down reform efforts. The problem is much more urgent now with our economic downturn and rising debt. The first chart on the opposite page shows how dire the situation is. Congressman Paul Ryan has proposed substantial entitlement reform, as shown in the second chart, which could go a long way toward restoring the nation’s fiscal solvency, though it is unlikely to gain traction as long as Democrats are in control.

    ALMOST $3 TRILLION IN ADDITIONAL TAXES
    As noted in chapter three, Obama flagrantly broke his no new taxes pledge on families making less than $250,000 a year. But his real tax punishment is reserved for those making $250,000 or more. He will raise the top two income tax brackets from 33 percent to 36 percent and from 35 percent to 39.6 percent, respectively. He’ll raise capital gains and dividends tax rates from 15 percent to 20 percent. He’ll phase out personal exemptions and limit itemized deductions. He’ll reduce the value of tax deductions by about one-fourth.
    National Debt Set to Skyrocket
    In the past, wars and the Great Depression contributed to rapid but temporary increases in the national debt. Over the next few decades, runaway spending on Social Security, Medicare, and Medicaid will drive the debt to unsustainable levels.

    Source: Heritage Foundation compilations of data from U.S. Department of the Treasury, Institute for the Measurement of Worth (Alternative Fiscal Scenario), Congressional Budget Office, and White House Office of Management and Budget.
    Entitlement Reform Would Eliminate Long-Term Deficits
    In January 2010, Representative Paul Ryan (R-WI) re-introduced the Roadmap for Americans Future, legislation that would improve America’s long-term budget situation by reforming entitlements. Compared to the current trajectory, the bill would eliminate long-term deficits.

    Source: Congressional Budget Office.
    Collectively, these measures will amount to a $1 trillion tax increase on just 3.2 million tax filers, which is an average of $300,000 per filer over ten years on those who already pay a disproportionate share of the taxes, notwithstanding Obama’s demagogic misrepresentations to the contrary. But there’s more: businesses and wealthy individuals would pay most of the proposed $743 billion in new taxes imposed by ObamaCare; Obama will institute some $468 billion in new taxes on America’s businesses; 29 and cap and tax, if implemented, could cost $843 billion in additional taxes. The following Heritage Chart itemizes the specifics:
    The President’s $2.9 Trillion Tax Increase
     
     
  Proposal 
  Ten-Year Revenue Impact (in Billions) 
  Cap-and-trade energy tax   *
  $843 
  Health reform tax 
  $743 
  Tax increase for upper-income families and small businesses 
  $968 
  Raise income tax rates for upperincome taxpayers. 
  $364 
  Raise capitol gains and dividends rates for upper-income taxpayers 
  $105 
  Reinstate the personal exemption phaseout and limitation on itemized deductions for upper-income taxpayers 
  $208 
  Limit itemized tax deductions to 28% value for upper-income taxpoyers 
  $291 
  Tax Increases for businesses 
  $468 
  Reform U.S. international tax system 
  $122 
  Bank tax 
  $90 
  Other business, financial and energy tax increases 
  $256 
  Various tax cuts for families and busineses 
  -$172 
  New stimulus tax cuts 
  -$61 
  Extensions of expiring tax cuts 
  -$47 
  Other proposals 
  $111 
  Total Tax Increase 
  $2,853 
 *Figures represent the cost of House-passed bill, which President Obama endorsed yet excluded from his budget tables. Note:  Policies are net of outlay effects of proposals.
  
    Source: Office of Management and Budget. Budget of the United States Government, Fiscal Year 2011