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| What $683 Billion Means: Defining the Democrat Tax Hike |
March 17, 2008 |
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$ 2,345 |
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The average amount of money the federal government will take out of the wallets of New Mexico taxpayers if House Democrat Leaders get their $683 billion tax hike. | Last week Rep. Heather Wilson opposed House Democrats' fiscally irresponsible budget proposal. That proposal would increase taxes $683 billion over the next 5 years, according to the House’s official scorekeeper, the Congressional Budget Office.
This marks the single largest tax increase in American history.
In order to bankroll new wasteful Washington spending, House Democrats will increase individual income tax rates, cut the child tax credit, bring back the marriage penalty, reduce small business tax credits, and raise dividends and capital gains taxes.
In all, 116 million taxpayers would feel the pinch, with the average tax hike in New Mexico amounting to $2,345.
Working families would be hit especially hard by the Democrat tax hike:
For instance, a family of four with two children that currently earns $50,000 annually would have to pay an additional $2,155 in taxes under the Democrat plan.
That would amount to a 191% increase in their taxes.
Here are some of the tax hikes that might affect you:
Cutting the Child Tax Credit. The Democrats' budget would cut the child tax credit in half, from $1,000 to $500, after 2010. According to House Budget Committee Republicans, the Democrats’ plan will burden American families an additional $50.9 billion in taxes over the next 5 years.
Return of the Marriage Penalty. In 2001, the Republican Congress reduced the marriage penalty in the tax code, which arises because of the progressive rate structure of U.S. income taxes. The Democrats’ budget proposal lets this tax relief expire so that some married couples pay more taxes than if they had filed separately as singles. House Budget Committee Republicans estimate that the Democrats' proposal will penalize married couples with an additional $25.4 billion in taxes.
Income Tax Hikes for All Americans, including Low-Income Families. Pro-growth tax relief has lowered income tax rates for all Americans. These tax cuts include a reduced rate of 10 percent for more than 100 million taxpayers in the lowest-income brackets. According to the Tax Policy Center, failure to extend this tax cut will result in a $472 billion tax increase on lower-income taxpayers over the next 10 years.
Reducing Tax Incentives for Small Businesses. The Democrats' budget will dramatically reduce tax incentives for American small businesses, which saved an average of $5,169 last year due to pro-growth Republican tax relief. According to CBO, these taxes will cost small businesses an additional $13 billion over the next 5 years.
Death Tax. Pro-growth policies put in place by the Republican Congress phase out the death tax by 2010. This tax penalizes families for handing down the family farm or small business to the next generation. According to the CBO, the Democrat budget will saddle these families and the American economy with a $181 billion tax hike over the next five years.
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