GraniteGrok

Well, Obama is certainly showing that he believes that Government owns all your money and will allow you to keep only what it wants:

Obama is going to let the tax rate cuts from Bush rise at the end of 2010.  We knew that going into his Imperialism.  Now, there's more for details (details....really?  Finally?)

The other brewing battle will be over how to finance Mr. Obama's national health insurance plan that will significantly expand the cost of government. His budget calls for cuts in Medicare payments to hospitals, insurance plans that serve older Americans, and prescription payments under Medicaid that critics say will result in cutbacks in health care services and facilities.

So, if you are elderly and sick, President Obama is saying "it sucks to be you!"  So, you really want to depend on Government for your healthcare?

Back to actual income - not only are the rates going up, but the effective rate is going to go up because the "rich" are not going to be able to itemize like you and me:

To help further pay for his universal health care plan, his budget also calls for cutting various tax deductions for wealthier Americans, including charitable contributions, interest on home mortgages, local taxes and other deductible expenses for those who itemize.

So, if the rate is going up to 40% for the richest among us in a formal way, it will actually be higher because of the lesser deductions.  So much for being fair - why not fair for ALL, President Obama?  No, I'm not at that height of income, but I want to be there someday.  But if I'm going to continually get whacked, why do I want to sacrifice to do that?

And you know that "cap and trade" program that he is gong to implement for CO2 emissions (industries now; in search for revenue, how much you want to bet that WE will have to one day too?  Wait until Obama get around to doing the same for oxygen too!).

A note about lessening the charitable deductions - I bet that this will end up like the yacht tax.  Obama and his cronies are assuming, in their budget estimates, that people do not change their behavior.  They do, and will stop being the "Sugar Daddies" for lots of deserving (and not so deserving) charitable services.  While many will continue to give, it will be interesting to match the total amounts.  As Dr. Brooks has noted, when taxes go up, charitable giving goes down.

And why not - "the government is doing it!"

The Law of Unintended Consequences - charities will be going toes up....or running themselves to the government teat to survive. What you incentivize, you get more of.  What you demonize, you get less of.  The signal that Obama is sending is that charities don't deserve rich people's support.

Yes, Obama want government to control all.