Jobs Report Yet Another Reason for Congress to Act on Taxes

Congressman Bill Shuster released the following statement on today’s job report:

“The economy added only 39,000 new jobs in November, marking the 19th consecutive month that unemployment has stayed above 9 percent. In the face of these numbers the outgoing Democrat leadership in the House voted yesterday to increase taxes on an estimated 750,000 small businesses.

The economy is still in a state of uncertainty. Businesses are trying to plan for next year under the looming threat of a massive tax increase that will take effect less than 30 days from now unless Congress does its job and extends the current tax rates into 2011 for all Americans.

The American people sent Washington a message on election day that they are tired of false promises and failed leadership on the economy. Instead of taxing more, Congress needs to spend less. I am committed to working with my colleagues in the incoming 112th Congress to roll big government back and let our business community do what it does best: innovate and create opportunities for all Americans.”

Shuster Votes NO on Flawed Tax Bill Opposes Massive Tax Increase on Small Businesses

“Real tax relief means that all Americans get the chance to keep more of their own money instead of sending it to Washington to be spent recklessly. We don’t need to tax any more, we need to spend less.

The Democrats’ flawed tax bill fails to recognize this by increasing taxes on many Americans who own small businesses and by law report their business income as personal income.

While many of these business owners make over $250,000 a year, they are anything but rich. Their income is used to make payroll and it is reinvested into their enterprises. Raising taxes on the people who create jobs and drive our economy is misguided and damaging to our economic recovery. For that reason, I support the complete extension of the Bush tax cuts for all Americans, not just for those selected for political expediency.”

The Democrat's Tax Agenda - You Pay More

“I can make a firm pledge, under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”

— President Barack Obama, September 12, 2008

Thursday, April 15, 2010, is Tax Day, the deadline for Americans to send their-hard earned money to Washington. Sadly, the current level of taxation is not enough to pay for the ongoing Democrat expansion of government. Since January 2009, Democrats have raised taxes by $679.3 billion, including $569 billion for ObamaCare. All told, there have been 14 violations of the President’s pledge not to raise taxes on those who make less than $250,000 a year. But it doesn’t end there - more is in store:

President’s Budget: The President’s Budget proposes to increase taxes by more than a trillion dollars, including:

$968 billion tax increase on upper-income families and small businesses:

$364 billion from expanding the top two income tax brackets and reinstating the 36 percent and 39.6 percent rates.

$105 billion from increasing the tax rate on capital gains and dividends from 15 percent to 20 percent.

$208 billion by reinstating the personal exemption and limitation on itemized deductions.

$291 billion by limiting the itemized tax deduction to 28 percent of value.

$49 billion tax by reducing the “tax gap,” the difference between taxes owed and taxes paid.

$122 billion in higher taxes related to changes in the U.S international tax rules and enforcement.

$90 billion in tax increases imposed on financial institutions, referred to as a “financial crisis responsibility fee,” which will be passed onto consumers.

$59 billion in tax increases associated with the repeal of “last-in, first-out” inventory accounting practices, which assumes that an entity sells, uses or disposes of its newest inventory first.

$40 billion in tax increases related to the repeal of tax credits for the production of natural gas, oil, and coal fuels.

$24 billion in increased taxes on carried interest, levied on investment partnerships by treating carried interest as normal income, more than doubling the tax rate from 15 percent to 39.7 percent.

Fiscal Commission: In an attempt to levy more taxes upon the American people, President Obama created a fiscal commission to address our looming fiscal crisis. The commission, comprised of a Democratic majority, will be tasked with presenting Congress with options for tackling the unsustainable imbalance resulting from entitlement programs. Unfortunately, Democrats have refused to take tax increases off the table and are likely to use the guise of a “bipartisan” commission to further increase taxes on the American people.

Value-Added Tax: The more than a trillion dollars in proposed tax increases in the President’s Budget hasn’t stopped the Obama Administration from searching for additional ways to increase revenues through disguised tax increases. There is now discussion of imposing a European style value-added tax [VAT].

The value-added tax is a type of national sales tax, imposed on the valued-added at each stage of production that applies to countless products and services. With small incremental taxes at each phase of production, increasing taxes is easy— and less noticeable. A tax of this sort would increase the costs of every day household and small business items and services, which would significantly impact low to middle income Americans.

On April 15, millions of American taxpayers will file their income taxes. This day will be a sad reminder of how the Democrats have squandered their hard-earned money to expand the size of government, bail out Wall Street, enact a failed stimulus, and enlarge our unsustainable entitlement programs. Taxpayers should not be further punished because Washington’s fiscal house is out-of-control. It is time, especially during this difficult economic recession, for Congress to help alleviate the tax burden of hard-working Americans and set an example of being fiscally responsible.

Read more at www.gop.gov

Shuster's Statement on President Obama's FY2011 Budget

“Just last week in his State of the Union address, President Obama stressed the need to recapture the spirit of fiscal responsibility in Washington. He reaffirmed this in his remarks to House Republicans on Friday. Unfortunately, the President’s budget falls short of the mark and fails to put his rhetoric into action.

Instead of producing a budget outline that cuts spending and reigns in the growth of government, the President’s proposal spends more than any budget in history, creates the largest deficits in our history and would require an equally large increase in taxes to pay for it all. This is not the approach we need in a time of soaring deficits, double digit unemployment and an uncertain economy.

I do look forward to working with the President to find ways we can get spending under control, but this budget is not the right way to start. Freezing spending next year, while spending $3.83 trillion now will not put our fiscal house in order. I will continue to work with my Republican colleagues in Congress on a responsible budget alternative that will address our economic situation in a commonsense manner.”

Republican Whip Eric Cantor on the Economy, TARP, Jobs and the White House

Jobs Report Highlights Democrats’ Failure of Leadership in the Economy

“This is something that I ask every single one of my economic advisers every single day, because I know that ultimately the measure of an economy is, ‘is it producing jobs.’”

- President Obama (CNN’s “State of the Union,” 9/20/09)

Congressman Bill Shuster released the following statement after the Department of Labor released its September jobs report, which showed the national unemployment rate has increased to 9.8 percent, or 263,000 jobs lost last month. The economy continues to keep pace with the highest national unemployment rate since 1983:

“Another month, another bad unemployment report from Washington. This refrain has been going on far too long and it is time for the Democrats in Congress and the President to stop their failed ‘go it alone’ strategy on the economy that has done nothing but spend us into historic levels of debt and grow an endlessly hungry federal government.

Close to 3 million jobs – 3 million – have been lost since the Democrats passed their stimulus bill that they promised would grow the economy and halt unemployment at 8 percent. Their plan failed, but instead of changing course and learning from their mistakes, the Democrats continue to push job killing policies on America all the while deaf to the objections of the people they were elected to serve.

Instead of pushing through a crippling national energy tax and a trillion dollar takeover of the American healthcare system, Democrats should open their minds to Republican alternatives that are focused on restoring fiscal responsibility and getting Americans back to work.”

Obama's new auto rules will transform the auto fleet in the US

Obama's new rules will transform US auto fleet. Including higher prices for the pick-up trucks you need for work and home and the mini-vans you use to carry the kids. In a time of economic stress, the Obama Administration's new rules could easily force yet another unexpected tax on your finances.

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Why government can't run a business

In today's Wall Street Journal John Steele Gordon has an op-ed that hits the nail on the head and explains why government shouldn't be trusted to run any private enterprise. All we have to do is look to the past to see that nearly every time the federal bureaucracy gets close to running something once managed by the private sector, disaster is sure to follow. Why Government Can't Run a Business - a must read.

Here are some clips from the op-ed:

When the federal government nationalized the phone system in 1917, justifying it as a wartime measure that would lower costs, it turned it over to the Post Office to run. (The process was called "postalization," a word that should send shivers down the back of any believer in free markets.) But despite the promise of lower prices, practically the first thing the Post Office did when it took over was . . . raise prices.

Cost cutting is alien to the culture of all bureaucracies. Indeed, when cost cutting is inescapable, bureaucracies often make cuts that will produce maximum public inconvenience, generating political pressure to reverse the cuts.

and

Capitalism isn't perfect. Indeed, to paraphrase Winston Churchill's famous description of democracy, it's the worst economic system except for all the others. But the inescapable fact is that only the profit motive and competition keep enterprises lean, efficient, innovative and customer-oriented.

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Obama Says U.S. Long-Term Debt Load ‘Unsustainable’

Bloomberg Online: Obama Says U.S. long-Term Debt Load 'Unsustainable'

President Obama finally acknowledges that we can’t tax, spend, and borrow our way back to prosperity:

“We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.”

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Tax increases could kill the economy

The Wall Street Journal Opinion: Tax increases could kill the economy

Great op-ed from the Wall Street Journal detailing why tax increases proposed by President Obama could kill our chances of ending the recession:

The current outlook for an economic recovery remains precarious. Although the stimulus package will give a temporary boost to growth in the current quarter, it will not be enough to offset the combined effect of lower consumer spending, the decline in residential construction, the weakness of exports, the limited availability of bank credit and the downward spiral of house prices. A sustained economic upturn is far from a sure thing. This is no time for tax increases that will reduce spending by households and businesses.

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Tax Day Reality: Democrat Tax Increases

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

Small Businesses Taxes: In 2010, the President’s budget will increase taxes on all taxpayers that earn more than $200,000 individually, or $250,000 as a couple. The majority of the burden for this $637 billion tax increase will be borne by small business owners (who pay taxes on this income as part of their individual returns). Small businesses create 60 to 80 percent of all new jobs in America. These new taxes will stifle job creation and economic growth in the midst of a recession.

Energy Consumer Taxes: As discussed, the President’s budget proposes to raise taxes by at least $646 billion on consumers of oil, coal, and natural gas through a complicated “cap and tax” program that will increase the cost of energy for every American. These carbon-based fuels provide about 85 percent of all energy output in the U.S. This new national energy tax will increase the cost of energy by up to $3,128 per household annually, taking more money out of the pockets of hard working families struggling to pay their bills each month.

Capital Gains and Dividends Taxes: Under the President’s budget, taxes on capital gains and dividends would increase for individuals with an income over $250,000 (married) and $200,000 (single) from 15 to 20 percent, increasing taxes on investors by $338 billion over ten years. These taxes would directly affect investors and shareholders most impacted by the declining stock market and would further discourage investments during a time when new investments are essential to jumpstarting our economy.

Charitable Giving Tax: The budget caps the value of itemized deductions at 28 percent for those with an income over $250,000 (married) and $200,000 (single), which will reduce charitable giving by $9 billion a year. The current economic crisis has severely damaged charitable organization’s ability to provide for people who are most affected by the recession, and the budget would leave these charities with at least a $9 billion deficit.

Death Tax: The President’s budget reinstates the death tax scheduled to be fully repealed in 2010. According to the Joint Committee on Taxation, the death tax has “broad economic effects” and one study has found that the death tax is responsible for lowering overall employment by 1.5 million jobs over the previous ten years.

Carried Interest Tax: The budget would more than double taxes on carried interest, increasing taxes up from the capital gains rate (15 percent) to the income tax rate (39.6 percent). Carried interest is interest gained on profits from investments and is generally used to pay investment fund managers based on the fund’s performance for investors. This tax hike is yet another attack on profit, private equities, and investments in the middle of a recession.

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.

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Flipping on your lights will cost you $3,100 a year

The GOP Leader blog has an interesting post on the true costs of President Obama and the congressional Democrats' cap-and-trade energy tax which is part of their FY2010 budget.

Bottom line? It will cost your family $3,100 extra in taxes every year to turn on your lights, drive your car and buy American products. How did Leader Boehner get the $3,100 figure?

"It’s pretty simple. We took MIT’s own estimate of a key “cap-and-trade” bill from the 110th Congress (S. 309) cosponsored by then-Senator Obama that said S. 309 would generate $366 billion in revenues in 2015. S. 309’s emissions targets track the emissions targets outlined in Obama’s budget, which the Congressional Research Service has confirmed. We took MIT’s own number – $366 billion – and divided that by the number of U.S. households (we assumed 300 million people and an average household size of 2.56 people…which is 117 million households). Using this formula, you get roughly $3,000 per household ($3,128 using current Census figures, a little less if you use projected Census figures from 2015). Now, this doesn’t even account for costs resulting from higher prices for food and all other products that will cost more to produce under their program."

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Promises, Promises

Obama tax pledge up in smoke

From the Associated Press:

To be sure, Obama's tax promises in last year's campaign were most often made in the context of income taxes. Not always. "I can make a firm pledge," he said in Dover, N.H., on Sept. 12. "Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes."

He repeatedly vowed "you will not see any of your taxes increase one single dime."

Now in office, Obama, who stopped smoking but has admitted he slips now and then, signed a law raising the tobacco tax nearly 62 cents on a pack of cigarettes, to $1.01. Other tobacco products saw similarly steep increases.

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