Kuhl Warns Of Tax Increases In Democrat Budget

KUHL WARNS OF TAX INCREASES IN DEMOCRAT BUDGET

U.S. Rep. John R. "Randy" Kuhl, Jr. (R-Hammondsport) commented today on the Democrats proposed budget for FY 2008 and it's damaging affect on the bank accounts of all working Americans:

"The era of big government is apparently back," said Rep. Kuhl. "The Democrats' budget is the ‘Mother of All Tax Increases' -- the largest tax increase in American history -- all to fund more government spending. I came to Congress to make government smaller and more efficient, not to create a bloated bureaucracy and inflict higher taxes on people. This budget is an absolute disaster. While I support funding increases in worthy programs such as increases to veterans health and benefits, I will only do so if Democrats scale back unnecessary spending elsewhere."

The House is scheduled to debate and vote on the Democrats' budget for fiscal year 2008 this week. If passed, this budget would impose the largest tax increase in American history - nearly $400 billion over 5 years to finance new government spending.

"To achieve this monumental level of taxation, Democrats plan to increase tax rates to generate $182 billion in extra revenue, cut the per child tax credit in half to raise $27 billion, increase the marriage penalty to garner $13 billion, increase the Death Tax for an extra $91 billion, and increase the capital gains and dividends tax rates for $32.5 billion," Rep. Kuhl continued. "And since that wasn't enough, they have thrown in plenty of other tax increases to drain taxpayers of another $47 billion."

Specifically, the Democrat Tax Hike:

o Raises the 10% Tax Rate Bracket to 15% -- more than 5 million individuals and families who previously owed no taxes would become subject to the individual income tax in 2011 if Democrats are successful in raising the 10% tax rate bracket to 15%, and reducing or eliminating other low-income tax benefits.

o Eliminates Marriage Penalty Relief -- 23 million taxpayers would see their taxes increase, on average, by $466 in 2011.

o Cuts the Child Tax Credit in Half -- 31 million taxpayers would see their taxes increase, on average, by $859 in 2011.

o No AMT Reform -- after repeatedly blasting Republicans for failing to provide a permanent reform of the alternative minimum tax [AMT], the budget fails to provide even a one-year patch which will cost families and small businesses hundreds if not thousands of dollars. Instead the Democrats employ a "reserve fund" that allows AMT relief only if offset by equivalent tax increases, paving the way for more tax increases down the road.

Examples of the affect of these tax increases on taxpayers:

o An elderly couple with $40,000 in income would see their tax bill would rise by 156% in 2011 - from $583 to $1,489.

o A family of four with $60,000 in earnings would see their taxes raised from $3,030 to $4,893 in 2011 - that's an increase of more than $1,850, or 61%.

o A single mother with two children and $30,000 in earnings would see her taxes raised by 67% in 2011. Currently, this single parent qualifies for a return of $2,414. After the Democrats' tax hike, this single parent would only receive $799.

EVERY working American would be affected:

o 115 million taxpayers would see their taxes increase, on average, by $1,795 in 2011.

o 83 million women would see their taxes rise, on average, by $2,068.

o 48 million married couples would incur average tax increases of $2,899.

o Taxes would increase, on average, by $2,181 for 42 million families with children.

o 12 million single women with children would see their taxes increase, on average, by $1,082.

o 17 million elderly individuals would incur average tax increases of $2,270.

o Taxes would rise, on average, by $3,960 for 26 million small business owners.

o Over 5 million taxpayers who previously owed no taxes would become subject to the individual income tax as a consequence of the sunset.

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