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On January 3, 2013, President Obama signed, via autopen, the fiscal cliff deal, in which President Bush’s 2001 and 2003 income tax cuts were made permanent for all but those individuals earning more than $400,000 per year or families earning more than $450,000 per year, who are now required to pay the Clinton-era 39.6% top tax rate.
The Congressional Budget Office estimates that income tax hike on these top income earners in the U.S. will bring in an additional $620 billion into the U.S. Treasury over the next 10 years, which if we assume is equally divided among each of those 10 years, would work out to be an extra $62 billion going into the federal government’s coffers in 2013.
According to Fox News, in November 2012, the federal government was spending roughly $11 billion per day. That means it will take the federal government about 5 days and 15 hours to spend all the proceeds from imposing higher income tax rates upon the most successful individual income earners in the U.S. exactly as President Obama desired.
So all the extra money the government will collect in 2013 through President Obama’s income tax rate hike on the wealthy will all be gone by the end of January 8, 2013. Don’t forget to mark your calendars!
Source: Arizona Department of Economic Security