"As Americans struggle to find good jobs and to keep their jobs, they are increasingly alarmed by the spend-and-tax policies under President Obama's Administration and are looking to their representatives in Congress to put a stop to the deficit spending and to oppose any effort to increase taxes on hard-working Americans," Hall said today on the occasion of Tax Day.
"With the explosion of government spending under the Obama Administration, the federal government will have a record deficit of $1.5 trillion this year alone," Hall said. The nonpartisan Congressional Budget Office reports that debt under the Obama Administration would grow from 40% of total economic output to 90% by 2020 -- a level of debt that Hall noted is unsustainable and that will require drastic action to correct.
"Unfortunately, the burden to pay for this will impact every American taxpayer, every family, and every business in the form of higher taxes -- and it still won't be enough to cover the exploding deficit," Hall noted. "Several tax increases will automatically occur this year unless Congress takes action, and the Obama health care reform will increase taxes by another $570 billion."
Unless Congress acts, in 2010 businesses will not be able to claim a tax credit for research and development. Taxpayers will not be able to claim a deduction for tuition and related expenses. School teachers will no longer be able to write off books and supplies that they purchase with their own money. Five-year depreciation of farm business machinery and equipment will expire, and the exemption for the Alternative Minimum Tax will decrease.
In 2011 the marginal income tax rates will increase as follows: 35% will increase to 39.6%; 33% will increase to 36%; 28% will increase to 31%; 25% will increase to 28%; and 10% and 15% brackets will condense to 15%. Dividends will increase from 15% to 39.6, and the capital gains tax will increase from 15% to 20%. The marriage penalty will be restored. The estate tax will skyrocket, the business expense cap will decrease, and child tax and dependent care tax credits will decrease.
"In addition to these tax increases, the Obama Administration is considering a new Value Added Tax (VAT) on consumption," Hall noted. "In Europe the average rate of the VAT is about 20% -- in addition to the income tax -- and the result in Europe has been a repressed economy and an overly taxed society."
"Americans know that this tax-and-spend philosophy will be disastrous for our nation and for future generations, and they are demanding immediate and comprehensive action," Hall said.
"Everywhere I go in the Fourth District, folks tell me that they are very worried about the future of our country and Obama's drastic expansion of government and spending."
"To restore our country's fiscal health, we need to reduce federal spending, reduce the deficit, and reduce taxes -- but we need more fiscal conservatives in Congress to help us accomplish these goals," Hall noted. "All across America, Tea Party groups and individuals are rallying against this Administration, and I think we'll see the results of their opposition in November."
Hall, a longtime fiscal conservative, is a member of the newly formed Anti-VAT caucus that will oppose any effort to impose a value-added tax on Americans. He is sponsoring legislation that will prevent the Bush tax cuts from expiring. He is an original cosponsor of legislation proposing a balanced budget amendment to the Constitution and legislation to require a super-majority vote on any increase in the national deficit. He is a strong supporter of the Fair Tax Act of 2009, which would replace the income, employment, estate and gift tax with a consumption tax, eliminate the IRS and replace this with a simplified tax structure. He is a cosponsor of legislation to make permanent the deduction of State and local general sales taxes, and he has long supported abolishing taxes on estates and capital gains.
"Most Americans believe that our Nation is headed in the wrong direction and must reverse course. I believe that, too, and am working hard to bring back a common-sense approach to governance," Hall said.