Weldon: Top Democrat Signals Tax Increases
Weldon: Top Democrat Signals Tax Increases
During a speech last week, Robert Rubin, Treasury Secretary under Clinton and a top Democrat advisor on tax policy, spoke in code about his party's commitment to raise taxes on millions of American families and businesses, saying, "You cannot solve this nation's fiscal problem without increased revenue." According to U.S. Rep. Dave Weldon, M.D. (R-FL), Rubin's comment is only the latest signal from the new Democrat majority that automatic tax increases are in the future for Americans.
"Taxpayers shouldn't be confused by Rubin's carefully worded comment about increasing government revenue. Democrats only have one plan when they talk about the budget: Tax increases," said Weldon, a strong defender of the Bush tax cuts. "Cutting spending isn't even mentioned as an option."
According to Weldon, the clock is ticking. Automatic tax increases will occur in:
- 2006, State Deductions - Floridians and other taxpayers with no state income tax will not be allowed to deduct their sales taxes from their federal income tax.
- 2007, AMT - Millions more Americans will be forced to pay the alternative minimum tax.
- 2009, Marriage Penalty Relief - Married couples will once again be liable for a greater tax burden than single filers and unmarried cohabitating couples.
- 2010, Small Business Expensing Relief - The amount of expenses small business can deduct from their taxes will be reduced from $100,000 to $25,000.
- 2010, Child Tax Credit - Families will see their tax bill increase $500 per child.
- 2011, Marginal Income Rates will increase across the board, including a 50% increase for the lowest income bracket.
Ironically, the Washington Post quoted Rubin in a recent article that highlighted a Democrat plan to fix the Alternative Minimum Tax (AMT) even though "the impact is harshest on taxpayers with annual incomes of $100,000 to $500,000."
"For all their populist rhetoric, it seems the Democratic leadership plans to let the tax relief for working class Americans expire so they can fund a tax cut for those earning upwards of $500,000. I believe tax relief should continue for all Americans, not just for the financially well-off like the Democrats are now proposing," Weldon concluded.
http://weldon.house.gov/News/DocumentSingle.aspx?DocumentID=52684