Before the House voted on the Senate’s ‘fiscal cliff’ bill this past New Year’s Day, wealthy business mogul and political wannabe Donald Trump tweeted:
Maybe Boehner will stop this one-sided deal in the House…I hope so!
The day after the House passed the bill, Trump sent out two angry tweets:
This is a terrible deal for the country and an embarrassment for Republicans!
Does any Republican have the ability to negotiate?
He then goes on one of his famous Twitter rants; in one hour, he posts the following:
The Republicans must face reality & create a strong & positive immigration policy–if not they will continue to lose elections.
GOP’s election loss and failed negotiations will serve as a case study in how third parties come about.
Obama’s deal raises taxes on 77% of national households. With Obama Care taxes kicking in now, everyone will be paying for his 2nd term.
…Remember–I told you so.
Make sure you realize that this ‘deal’ is only a stop gap measure. Obama will be looking to raise even more taxes in the coming negotiation.
And the coup de grâce:
This ‘deal’ RNC voted for has $41 in tax increases for every $1 in spending cuts. It is pathetic. Obama is laughing at them.
Yeah, you can see why Trump would be irate. After all, he and all his millionaire buddies were assured time and time again by the GOP that their hefty earnings would be safe from Uncle Sam and they would continue to enjoy the low tax rates under the Bush era tax cuts. Remember how just days after the general election, House Speaker John Boehner indicated that he and his fellow Republicans would not be budging on tax increases for the wealthy? According to CNN, Boehner told reporters and supporters:
“With this [2012 General Election] vote, the American people have also made clear that there is no mandate for raising tax rates.”
And a few days later, he said to Diane Sawyer on ABC News:
“Raising tax rates is unacceptable.”
In the same interview, Boehner indicated he would, however, be open to increasing tax revenue through the closing of loopholes – unspecified loopholes of course. Millionaires don’t quake at unspecified loopholes too much; the unspecified nature implies there’s a chance the closed loopholes won’t affect them. And, of course, there are always other loopholes.
There is, however, no slippery loophole and no escape from a tax rate hike. It’s the wealthy equivalent of ‘pain at the pump’ – wishing for the days when you weren’t paying so much and wondering what you’re going to cut from the budget to afford it. Only with the wealthy, it’s more like wondering how much less you’ll be stashing offshore.
But I’m thinking Trump will be feeling a little pain. While his actual annual income is unclear, let’s just look at his income earned from the popular reality show, Celebrity Apprentice. According to the New York Post, NBC signed Trump to a hosting contract for $160 million for 2012-2013 seasons, and Trump himself would be personally pocketing $65 million for each season.
So, of the $65 million Trump received for the 2012 season, the taxes amount to roughly 34.96%, or $22,726,761. Now let’s compare that to the new 2013 tax brackets. While taxes on his first $400,000 will be roughly the same as last year (about $3,500 more for 2013), the taxes on the remaining $64,600,000 went up pretty substantially – by 4.6% – for a whopping total of $25,581,600 in taxes. That means Trump will owe almost $3 million more in taxes on his 2013 Celebrity Apprentice income than he paid on the same purported income last year. [Formula source.]
How will Trump pay for this tax hike? While Congress decided to keep the charitable deduction in the code, they did put a limit on how much high-income taxpayers can deduct, defining the threshold as those making over $250K ($300K for married couples). Since Trump falls within this threshold, one wonders whether he will cut back on his lavish lifestyle in order to afford his higher tax rates – or will he cut back on his charitable generosity during this season’s reality extravaganza?