As tax day approaches, President Obama and Congressional Democrats have demonstrated their addiction to raising taxes on all Americans. The following is a non-exhaustive list of tax increases that have either been passed by the House or have been proposed by the President and Congressional Democrats.
Tax Increases Passed by the House
Scheduled Tax Increases: H.Con.Res. 85, the Democrat budget resolution, which passed on April 2, 2009, by a vote of 233 - 196, would increase taxes by $574 billion over five years and $1.154 trillion over ten years, as compared to extending current low-tax policies as called for in the Republican alternative.
Taxes on TARP Recipient Bonuses: H.R. 1586 was passed by the House on March 19, 2009, by a vote of 328 - 93, and would have imposed a new 90 percent tax on bonuses received by certain employees of private companies that received money from the Troubled Asset Relief Program (TARP) or who work for Fannie Mae or Freddie Mac.
Tax Increases Through Reconciliation: H.Con.Res. 85, the Democrat budget resolution, also included reconciliation instructions requiring the Energy and Commerce, Ways and Means, and the Education and Labor Committees to report “deficit reduction” legislation by September 29, 2009. Under this process, each committee must report legislation to reduce the deficit by $1 billion over six years. These three committees given reconciliation instructions are poised to report costly policies contained in the President's budget.
Ø "Cap and Tax": The President's budget proposes a national energy tax that would cap greenhouse gas emissions from regulated entities and require businesses to purchase permits or "allowances" for their emissions-an effective tax on all energy consumption. According to data from a Massachusetts Institute of Technology (MIT) study, this tax will cost the average American household up to $3,128 per year in increased energy costs. According to the Deputy Director of the National Economic Council, the proposal could actually cost “two or three times” the $646 billion suggested in the President’s budget—making this a potentially $2 trillion tax increase over ten years.
Ø Government Run Health Care: The President's budget proposes more than $630 billion in new spending on health care reform as a mere "down payment" for additional spending to come. The prime focus of their agenda is the establishment of a government-run health insurance plan, designed to “compete” against private health insurance, which will lead to nearly 120 million employees losing their coverage. The Democrats are likely to also raise other taxes to accommodate this new spending.
Tobacco Taxes: H.R. 2, the Children’s Health Insurance Program Reauthorization, increased the federal tobacco tax from 39 cents per pack to $1, with similar increases on cigars and other tobacco products. Many Members expressed concerned that the tobacco tax increase, which is highly regressive, would place an undue and unnecessary burden on working families during an economic downturn. This tax increase was passed by the House on February 4, 2009, by a vote of 290- 135, and signed into law the same day.
Tobacco Company Taxes: H.R. 1256, the Family Smoking Prevention and Tobacco Control Act, charged tobacco companies $5.4 billion in new “fees” over ten years. The fees essentially amounted to a new tobacco tax that will be passed on to consumers. The bill passed the House on April 2, 2009, by a vote of 298 - 112.
Tax Increases Proposed in the President’s Budget
Energy Producer Tax: The President’s budget imposes $31 billion in punitive new taxes on domestic energy production over the next ten years, encouraging U.S. companies to move jobs overseas and increasing our overall dependence on foreign energy supplies.
LIFO Accounting: The President’s budget proposes repealing the first-in, first-out (LIFO) accounting rule which allows businesses to assume the most recent inventory item purchased is the first sold. The decades-old rule allows businesses to account for inflated inventory costs over time and avoid paying a “phantom tax” on increased income that is a merely a result of an inflated cost of inventory over time. According the President’s budget, the change would result in a $61 billion tax increase over ten years, borne mainly by manufacturers and small businesses that purchase a great deal of inventory each year.
Posted by: Press Secretary