As the country struggles to keep its head above the turbulent economic waters, 10th District Democratic candidate and self-proclaimed "progressive" Brad Schneider, wants to raise taxes on all Americans. During a time when families, businesses and seniors are struggling just to pay basic living expenses, raising taxes not only will hinder economic growth, but also will significantly impact jobs and retirement plans.
"Brad Schneider is to the left of the most liberal members of his own party. Even Nancy Pelosi agrees that taxes shouldn't be increased on middle-income families and small businesses," said John McGovern, Dold for Congress campaign spokesman. "Although Schneider claims to be a small business owner, he has demonstrated a shocking lack of economic common sense by repeatedly proclaiming his desire to raise taxes on everyone, including hard-working Americans, the small businesses that employ them, and even seniors."
Brad Schneider's Tax Policy Position by the Numbers:
FACT: Brad Schneider supports a raise of $2.5 billion in 10th District taxes.
According to a report by the Heritage Foundation, should the 2001 and 2003 tax cuts expire, local taxes would more than double for families, totaling more than $7,605 per return.
FACT: Brad Schneider's tax policy is a job-killer.
710,000 jobs would be directly lost if taxes are allowed to increase due to the expiration of the 2001 and 2003 tax cuts, and an added 800,000 jobs will be lost from the Affordable Care Act implementation tax -- costing a minimum of 1.5 million jobs. Sources: Ernest and Young July 2012 Report and Congressional Budget Office
Small business owners would see a tax increase of nearly 15 percent if the 2001 and 2003 tax cuts expire, decreasing the ability for businesses to hire additional workers. Source: "Small Businesses Brace for Tax Battle," The Washington Post
Most small businesses are not required to pay corporate income taxes, but rather report income on the owner's individual tax return, likely placing them in the top tax bracket. According to an Aug. 2009 study by the National Center for Policy Analysis, taxes paid in this manner account for 93 percent of all U.S. businesses. If taxes were increased on the top tax bracket, more than half of the reported small business income would be hit with a tax hike. Source: "Soaking the Rich and Drenching Small Business," National Center for Policy Analysis
FACT: Brad Schneider's tax policy will negatively impact seniors.
Low rates on interest-bearing investments have caused seniors to use dividend-paying stocks to supplement their incomes. According to IRS data, almost three of four dividend payments go to those 55 and over through retirement plans, pensions or mutual funds. If the current tax rates are permitted to expire, top tax rates on dividends almost triple from 15 percent to 43.4 percent. Source: "The Tax Cliff Endangers Seniors," Wall Street Journal
The expiration of the 2001 and 2003 tax cuts will significantly increase the Death Tax to a top rate of 55 percent from 35 percent, according to the Joint Committee on Taxation. This means any senior who has accumulated assets totaling more than $1 million, will be subject to the Death Tax increase -- this includes all assets American seniors have worked hard to achieve in their lifetimes, counting family businesses, homes or property. Brad Schneider is quoted as saying, "I think the idea of fighting the concentration of wealth across generations is critical. So I would keep the estate tax on the books." Source: Brad Schneider, Congressional Democrat Debate video
FACT: Brad Schneider's tax policy will increase taxes on all Americans. According to the Joint Committee on Taxation:
A family of four earning $50,000 per year could pay nearly $2,200 more in taxes (a five-fold increase to their tax liability)
A single mom earning $36,000 per year could pay more than $1,100 in higher taxes (nearly doubling her tax liability)
A married senior citizen couple earning $40,000 per year could pay nearly $1,700 more in taxes (more than doubling their tax liability)
FACT: Brad Schneider's tax policy would eliminate the 10 percent tax bracket, raising taxes on the lowest earning Americans who pay income tax. Allowing the 2001 and 2003 tax cuts to expire would cost 88 million taxpayers, including seniors who pay income taxes, an increase of nearly $502 a year, according to estimates from the Joint Committee on Taxation.
"At a time when our nation is facing devastating unemployment and sluggish growth, it is unconscionable to further destabilize our fragile economy by hitting all Americans with higher taxes," said McGovern. "We need a leader who understands job creation and the economy, not someone like Brad Schneider who subscribes to the discredited Springfield philosophy of taking more, borrowing more, and spending more."