Disturbing numbers… Obama and the Tax Witchhunt
I assume that you all are aware of Obama’s “fix” for the lost tax revenue due to overseas tax havens and “exporting jobs” overseas.
While they are talking about how wonderful this $21 billion will be, it reminds me of the stupidity of saving money by eliminating a program (D.C. vouchers) that costs the federal govt $8,000 per student in order to funnel them into the public schools, where it costs $14,000 per student.
Apparently the messiah said that he will hire 800 IRS agents to accomplish this. At a peasy salary of $50,000 per agent (which I think is a ridiculously low estimate), that would cost $40 million. Unless I am not hearing correctly, the messiah believes that is a pretty hefty sum. If you double the cost per agent, that means that you would get $262 per dollar invested (or should I say, “speculated.”) That does not take into account that, after 20 years, you then pick up the cost of govt retirement.
That would be a pretty good rate of return, if this enforcement went as smoothly as is envisioned. But, to move beyond stage 1 . . .
I assume that the estimate of tax revenue generated would be assuming that you catch EVERYTHING. We know that that is uncertain, as that is the whole idea behind this new program–getting revenue that is missed. We also know that it is in the interests of those who calculate the figures.
If they are able to add 80% of the tax revenue, that means that, at $100,000 per agent (starting salary for a newbie would be about $51,000; add benefits and assume that most will not be 21 year olds coming on board), the program will generate $165 per $1 spent in salary. Seems impressive, but we have already lost about $5 billion per year.
But what about the losses from companies that will change the way that they do business in order to avoid paying the extra taxes? I have a feeling that that might be in the trillions.
And let’s not forget–while libs and lefties LOVE the idea that this revenue digs into those evil things called profits, basically extra taxes get passed on to the consumer.
So . . . while this seems to placate our desire to get back at these CEO villains, are we really interested in taking the chance that this pursuit of tax revenue may actually COST us?