Obama Tax Would Pay for Four Months of Deficit Spending

The inferior (leftist indoctrination) education Obama has received from Columbia and Harvard becomes more apparent everyday. The latest example of, stupidity, from the leader of the free world is the millionaires tax. As can bee seen below in a e-mail from the Congressional Budget Office the tax would raise a grand total of $453 billion dollars or about 35% of the $1.29 trillion deficit.

This assumes that millionaires will not change their behavior and will continue to work the same as before the tax with the same economic conditions. Real world evidence gathered over 60 years plus from the White House Historical tax collection records shows that Americans will not pay more than 20% of the GDP in taxes even with 90% top tax rates. The millionaires subject to the tax will simply defer income or get compensation in other forms of payment bypassing direct income payments. Examples would be longer vacations, less work output, stock options, company benefit increases, and other tricks employed by accountants for generations.
We can assume that the $453 billion figure is under a best case scenario. Realistically, with the exception of a few new money superstars, most businessmen and women will know how to work the system and the $453 billion would become, optimistic projection, $200 billion. This assumes 44% of the millionaires lack the intelligence to hire a good accountant.
The cost to society would be much higher than $200 billion collected in taxes. The $253 billion that would have went into consumption or savings would now be put into less productive uses such as tax shelters or in off shore accounts, possibly invested in China, Brazil, Singapore, or any number of uses that would not benefit Americans. Obama does not understand basic economics and the fact that if rich people are not using their money someone else is. If the money is in the bank it is being loaned out. If it is in the stock market it is being used as collateral to build economic growth. Simply put taking $200 billion out of the savings and investment portion of the GDP equation and putting it into government consumption hurts long term economic growth.
I cannot take much more of this economic illiteracy from our Dear Leader and his Keynesian advisers. We need some hope and a change next year.

Our President is a economic illiterate

Dear Mr. Leader:
As you requested, CBO and the staff of the Joint Committee on Taxation (JCT) have estimated the budget impact of S. 1660, the American Jobs Act of 2011, as introduced in the Senate on October 5, 2011. CBO and JCT estimate that, in total, enacting S. 1660 would decrease deficits by about $6 billion over the 2012-2021 period (see enclosed table). That estimated deficit reduction of $6 billion over the coming decade is the net effect of $447 billion in additional spending and tax cuts in titles II through III and $453 billion in additional tax revenue from the surtax specified in title IV.
S. 1660 is similar to S. 1549, the American Jobs Act of 2011, as introduced in the Senate on September 13, 2011. Provisions in title I, II, and III related to both federal revenues and spending are identical for the two bills. The only difference between the bills is that S. 1660 replaces the provisions in title IV (Offsets) of S. 1549 with a surtax of 5.6 percent, starting in 2013, on a taxpayer’s modified adjusted gross income in excess of $1 million (or $500,000 in the case of a married individual filing a separate return), indexed for inflation. JCT estimates that title IV of S. 1660 would increase revenues by $453 billion over the 2012-2021 period, whereas title IV of S. 1549 would increase revenues by $450 billion over that period.