Tax Facts

• According to the National Taxpayers Union, the IRS now lists more than 1700 publications, forms, and instructions on its website.
• Americans still spend more time working to pay taxes to all levels of government than they spend working to pay to put food on their tables, provide housing, and buy clothing combined.
• This year, 100% of the income the average American earns from January 1 to April 8 (99 days) will go to pay Federal, state, and local taxes in 2010, according to the Tax Foundation.
• If only half of Americans pay taxes, then each taxpayers' tax freedom day is actually much later than April 8.

Democrat Forced Tax Increases since 2009

Click here to see the complete list of $670 billion in new taxes.

Without Congressional Action, more Taxes Loom

Your tax burden will increase if Congress fails to act on the following items*:

2009:

• Small business net operating loss (NOL) carryback period will decrease from 5 to 2 years.

2010

• The exemption for the Alternative Minimum Tax (AMT) will decrease from $46,700 to $33,750 for single filers and from $70,950 to $45,000 for married couples filing jointly.
• Taxpayers will not be allowed to deduct their state and local general sales taxes from their federal income tax.
• Businesses will not be able to claim a tax credit for research, experimentation, and development activities.
• Taxpayers will not be able to adjust their income for qualified tuition and related expenses.
• First-time homebuyers will no longer be able to claim a tax credit of up to $7,500.
• The Section 179 business expensing cap will decrease from $250,000 to $125,000 (plus inflation after 2008), and the starting point for the phase-out of this deduction will decrease from $800,000 to $500,000.

2011

• The marginal income tax rates will increase as follows:
  • 35% bracket will increase to 39.6%
  • 33% bracket will increase to 36%
  • 28% bracket will increase to 31%
  • 25% bracket will increase to 28%
  • 10% and 15% brackets will condense to 15%
• The capital gains rates for individuals will increase from 15% and 5% to 20% and 10%.
• Dividends will no longer be taxed at the capital gains rates for individuals, thereby increasing the double taxation of dividends by as much as 164%.
• The standard deduction for couples as a percentage of the standard deduction for singles will decrease from 200% to 167%--restoring the marriage penalty.
• The top end of the 15% marginal income tax bracket for couples as a percentage of the top end for singles will decrease from 200% to 167%--restoring the marriage penalty.
• The child tax credit will decrease from $1,000 to $500.
• The “death” tax using the “stepped up” basis will return with a 55% maximum rate (including surtax) and a $1 million exemption, after years of decreasing “death” tax rates, increasing exemptions, and one year using the “carryover” basis to calculate the tax due.
• The $400 “Making Work Pay Credit” will expire.

*This list is not exhaustive. Source: Joint Committee on Taxation and Americans for Tax Reform.

Issa Tax Action

Click here to view Congressman Issa's anti-tax pledge.

Congressman Issa is a supporter of the following bills to reduce taxes and improve the federal tax system.

• H.R. 982: Because the IRS now lists more than 1,700 publications, forms, and instructions on their website, the American people deserve a completely new tax code.
• H.R. 25: This bill repeals most federal taxes in favor of a national retail sales tax.
• H.R. 87: For the almost 40% of Americans who believe taxes are not high enough, this bill allows taxpayers to designate on their tax returns a payment to the U.S. Treasury.
• H.R. 205: This bill abolishes any form of tax triggered by death, inheritance, and gifting.
• H.R. 213: This bill extends adoption tax relief.
• H.R. 240: This bill eliminates the Alternative Minimum Tax (AMT).
• H.R. 301 and H.R. 4746: These bills make permanent much of the scheduled to expiring tax provisions (see page 1).
• H.R. 470: This bill reduces income and corporate tax rates, providing relief for middle-class families.
• H.R. 1203: This bill allows military members to deduct TRICARE supplemental premiums and to pay TRICARE premiums on a pre-tax basis.
• H.R. 1521: This bill prohibits new state or local cell phone taxes.
• H.R. 1835: Creates alternative energy tax credits
• H.R. 4308: This bill allows taxpayers to designate on their tax returns an amount to go toward deficit reduction.
• H.R. 4735: This bill prohibits individuals who are seriously delinquent on their taxes from federal employment.