BACK TO THE FUTURE
March 30, 2007
House Democrats recently voted to impose the largest tax hike in American history. It lays the groundwork for increasing personal income tax rates on middle-income families, slashing the child tax credit, reinstating the marriage penalty and bringing back the death tax, says Rep. John Boehner, the Republican leader in the House of Representatives.
We've seen this play before. The last time Americans faced a massive tax hike was in 1993 -- the last time Democrats were in the majority. While Democrats may view them as just lines on a page, these impending tax hikes are real dollars and cents, says Boehner:
- Their budget would raise the tax bill for every working American -- 115 million taxpayers will see their taxes go up by an average of $1,795; and if you're married, have children or own a small business, you're in for extra punishment.
- For example, 48 million married couples will face an average tax increase of $2,899; 17 million elderly individuals will pay an average tax increase of $2,270 and 26 million small business owners will be hit by an average tax increase $3,960.
- In addition, more than five million individuals and families who would have seen their income tax liabilities completely eliminated will now have to pay taxes.
- And by failing to reform or eliminate the alternative minimum tax (AMT) that's threatening to engulf more and more Americans, the Democrats' budget imposes an immediate $50 billion tax hike on middle class families.
That isn't all, says Boehner. By using a budget gimmick known as a "reserve fund," Democrats propose additional spending for federal programs, promising to pay for it later. How? Given their track record, the most likely scenario is that Democrats would burden the middle class with an additional $115 billion in new taxes.
Source: John Boehner, "Back to the Future," Wall Street Journal, March 30, 2007.
Browse more articles on Tax and Spending Issues