DON'T MESS WITH SUCCESS
March 15, 2007
Despite campaign promises not to raise taxes, the new Democratic majority's budget fails to keep existing tax policies in place, which amounts to a $900 billion tax hike over five years, the largest tax increase ever, say Senators Judd Gregg (R-N.H.) and Chuck Grassley (R-Iowa).
- Under a Democratic budget that does not extend existing tax policies, the lowest-income families who pay taxes will see their taxes increase by 33 percent.
- The $1,000 per child tax credit would be cut in half, and the standard deduction for married couples would be cut by $1,700.
- Forty-five million working families with two children would pay $3,000 more in taxes per year, equivalent to a 5 percent pay cut.
In addition to taking more from hard-working families, that tax hike would serve to slow the economy, suppressing investment and job creation, becoming a noose around the neck of the economy. It would also dampen the positive impact that the tax cuts have already had:
- Since 2003, more than seven million new jobs have been created -- and at 4.5 percent, the unemployment rate is below the average of the past three decades.
- The U.S. economy is experiencing five uninterrupted years of growth, and since the tax cuts of 2003, the rate of economic growth has more than doubled.
- Real wages and benefits have increased 7.5 percent under President George W. Bush, compared to 6 percent under President Bill Clinton during the first six years of their respective presidencies.
Despite false accusations that tax relief has benefited only the top wage-earners, it is worth noting that high-income taxpayers bear a greater burden of the total tax payments now compared to the Clinton years. Meanwhile low-income taxpayers' burden has decreased to 10 percent from 15 percent.
Source: Judd Gregg and Charles Grassley, "Don't Mess With Success," Wall Street Journal, March 15, 2007.
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