Coburn targets 'Subsidies of the Rich and Famous'

Oklahoma Senator Tom Coburn — known on the Hill as "Dr. No" — is out with a new report today called “Subsidies of the Rich and Famous,” a 37-page look at how millionaires and billionaires benefit from tax breaks and government handouts under the current federal tax code. Coburn’s report covers payments to millionaires, including disaster relief payments, farm subsidies and energy and conservation efforts, Social Security retirement benefits, and unemployment insurance and finds billions in what he considers wasteful spending for Americans who don’t need the government’s help. He also finds billions in tax deductions on mortgage interests, rental expenses, child-care and renewable energy credits.

In all, Coburn finds $9.5 billion in benefits and $113.7 billion in tax deductions claimed by millionaires between 2004-09. Or $1.6 billion in benefits paid annually to millionaires and $28.5 billion in tax breaks.

Coburn’s report comes at a time when Republicans are increasingly targeting benefits for millionaires — a goal they say is completely consistent with their efforts to reduce wasteful spending. Earlier this month, POLITICO took a look at efforts in both chambers to cut unemployment benefits for millionaires, go after their farm subsidies and introduce greater means testing for Social Security. The newfound sensitivity to government benefits for the wealthy also comes at a time when Occupy Wall Street protestors are making income inequality the keystone of their political appeal and polling shows that a large majority of the public think that Republican economic policies favor the rich.

Conservatives have been hammering President Barack Obama and Senate Democrats for their “class warfare” rhetoric and their proposal for a new tax on millionaires, so it’s interesting to watch them target benefits for the wealthy while being careful to not to demonize the rich.

“From tax write-offs for gambling losses, vacation homes, and luxury yachts to subsidies for their ranches and estates, the government is subsidizing the lifestyles of the rich and famous. Multi-millionaires are even receiving government checks for not working. This welfare for the well-off — costing billions of dollars each year — is being paid for with the taxes of the less fortunate, many who are working two jobs just to make ends meet, and IOUs to be paid off by future generations,” Coburn writes in a letter at the beginning of the report. He later adds, “We should never demonize those who are successful. Nor should we pamper them with unnecessary welfare to create an appearance everyone is benefiting from federal programs.”

Coburn says it’s a part of his mission to go after unnecessary spending. “I’m going after everything everywhere,” he told this paper last week.