A RECORD TAX HIKE
June 9, 2008
The Senate's new $3 trillion budget for 2009 fails to do something vital to the U.S. economy: extend President Bush's tax cuts. If this isn't fixed, we'll soon face the largest tax hike in our history, says Investor's Business Daily (IBD).
- By not making President Bush's cuts permanent, taxes will rise by a minimum of $2.8 trillion between now and 2018.
- The 2009 budget for the first time ever spends $1 trillion on discretionary (nondefense, non-entitlement) items.
- The Democrats plan to pay for increasing spending by a half-trillion dollars by raising taxes by $683 billion -- the biggest such increase ever.
- On average, 116 million taxpayers will see a jump of $1,800 in their annual tax bill.
- Some 48 million married, middle-class couples will be slapped with an average increase of $3,007.
- Even the elderly will take a hit -- $2,181 on average.
- A single parent with two kids making just $30,000 a year will get $1,600 tacked on to his or her tax bill.
- A family of four with an income of $50,000 will see their taxes rise a whopping 191 percent.
If President Bush's tax cuts expire in 2010, the massive tax increase will weaken the economy and kill job growth. As for the deficit, slower growth also means lower revenues -- and a bigger deficit. This is supply-side economics in reverse -- creating massive disincentives to work, save and invest, and shrinking the pie, says IBD.
Source: Editorial, "A Record Tax Hike," Investor's Business Daily, June 5, 2008.
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