Budget Fact #3

Your daily dose of facts on President Obama's budget:

BUDGET FACT #3: Taxes Too Much

The Facts About The Democrats' Budget:

The Largest Tax Increase In American History: The Democrats' budget will raise taxes by $1.4 trillion over the next ten years.

Harming Small Businesses: The Democrats' budget will raises income taxes harming the many small businesses that pay taxes at the top two individual rates. According to the National Association of Manufacturers, 68 percent of American manufacturers pay taxes at the individual income tax rate and most of them will see their taxes increase under the Democrats' budget.

Higher Energy Prices: The Democrats' budget will lead to higher energy prices and a tax for every American who uses energy. The Democrats' cap-and-trade proposal represents a new national climate tax that will cost every household up to $3,128 annually in higher costs for natural gas, electricity, home heating oil and gasoline.

Hurting Charitable Giving: The Democrats' budget will put a new tax on charitable giving that could cost American charities as much as $16 billion a year. This will harm numerous organizations at a time when many of these groups are now struggling with the economic downturn.

Harming The Housing Market: The Democrats' budget will harm the housing market by limiting the mortgage interest deduction and making it more expensive to purchase or afford a new home. As the National Association of Realtors reports, lowering this deduction will impact all home prices and values for all Americans.

Bringing The Death Tax Back: The Democrats' budget brings back the estate tax – currently scheduled to be repealed next year – re-imposing a heavy tax burden on small businesses and family farms.

What Even Some Democrats Are Saying About The Tax Increases In The Democrats' Budget:

Senator Evan Bayh (D-IN): "I Do Think That Before We Raise Revenue, We First Should Look To See If There Are Ways We Can Cut Back On Spending." "As for the tax increases on high-income earners called for in Obama's plan, Bayh said, 'I do think that before we raise revenue, we first should look to see if there are ways we can cut back on spending.'" (Manu Raju, "Moderates Uneasy With Obama Plan," Politico, 3/3/09)

Senator Ben Nelson (D-NE): "I Have Major Concerns About Trying To Raise Taxes In The Midst Of A Downturn Of The Economy." "'I have major concerns about trying to raise taxes in the midst of a downturn of the economy,' said Nelson, the conservative Nebraska Democrat. 'On the one hand, you're trying to stimulate the economy. On the other hand, you're trying to keep money from going into taxpayers' pockets. It's very difficult to make that logic work.'" (Manu Raju, "Moderates Uneasy With Obama Plan,"Politico, 3/3/09)

Representative Shelley Berkley (D-NV): "A Nonstarter." "Rep. Shelley Berkley (D-Nev.) called the proposal 'a nonstarter,' telling Geithner: 'I'd like to think that people give out of the goodness of their hearts, but that tax deduction helps to loosen up their heartstrings.' Outside the hearing, Berkley said the proposed tax increase was 'the number one issue' on the minds of her constituents over the weekend. Reminded that the provision is intended to raise hundreds of billions of dollars to finance an expansion of health insurance coverage, Obama's top domestic priority, she said: 'We can find another way.'" (Lori Montgomery, "Obama Officials Defend Budget," The Washington Post, 3/4/09)

Posted by: Press Secretary