March 13, 2008

Republicans Spin Fiction on Taxes

Bush Republicans have been parading out to the floor to criticize the Democratic budget on taxes in a vain attempt to score political points. However, the facts are clear. The Democratic budget cuts taxes for middle-class families, helping the family budget.

FICTION: Senator Brownback Claimed the Democratic Budget Proposal Would Be the Largest Tax Increase in History. “Fiscal year 2009 budget promises to impose the largest tax increase in the history of this nation on American families. And does this at precisely the wrong time, as I've stated, when the economy is struggling. This will be the largest tax hike ever amounting to an additional $3,135 in taxes each year for every household -- $3,100 a year increase in household taxes at exactly a time when people are getting concerned about economic activity.” [Congressional Record, 3/10/08]

• FACT: Democratic Budget Proposal Does Not Include a Tax Increase. “Some are claiming that the budget plans adopted this week by the House and Senate Budget Committees — the full House and Senate are scheduled to consider their respective committee’s plan next week — would constitute “the largest tax increase in history.”  This claim is inaccurate, just as the same claim was inaccurate with regard to the budget resolution the Congress adopted last year.  Neither of the plans recommended this week by the budget committees include a tax increase.” [Center for Budget and Policy Priorities, 3/7/08]

• FACT: Democratic Budget Calls for AMT Relief. “The Senate plan actually calls for a small reduction in revenues, reflecting its assumption that Alternative Minimum Tax relief will be extended for one year without any offset of the revenues that will be lost as a result of that extension and that a second stimulus bill this year may include a small tax cut.” [Center for Budget and Policy Priorities, 3/7/08]

FICTION: Senator McConnell Claimed Democratic Budget Would Raise Taxes on Low Income and Middle Class Taxpayers. “Under the Democratic plan for taxing the rich, a single mother who earns up to $45,000 a year would see her taxes go up. Under the Democratic plan for taxing the rich, 7.8 million low-wage earners will be added back to the tax rolls, workers now who are considered too low income to pay any income tax at all. Under the Democratic plan for taxing the rich, 43 million families would be hit with an average tax increase of $2,300 next year. [Congressional Record, 3/12/08]

• FACT: Democratic Budget Assumes Paid-For Extension of Middle-Class Tax Cuts. “Both the House and Senate Budget Committee plans assume that current law will be amended to extend some of the expiring tax cuts (especially those affecting middle-class families) and make other changes in tax policy… They do not assume that total revenues will be increased above what is expected to be collected under current policies.” [Center for Budget and Policy Priorities, 3/7/08]

• FACT: Proposed Baucus Amendment Extends 10 Percent Tax Bracket, Child Tax Credit, Marriage Penalty Relief, Dependent Care Credit and Adoption Credit.  “First, our amendment makes the ten-percent tax bracket permanent. That’s a tax cut for all taxpayers. Second, we’re making permanent the changes to the child tax credit. That’s a $1,000 tax credit per child. This tax credit recognizes that a family’s ability to pay taxes decreases as their family size increases. Unless we act, the child tax credit will fall to $500 per child in 2010. We’re making permanent the marriage penalty relief… We’re making permanent the changes to the dependent care credit… We’re making permanent the changes to the adoption credit. Most adoptions cost more than $20,000. This provision offers a credit of $10,000 for those willing to give a child a home.” [Senator Baucus Press Release, 3/11/08]

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