Democrat Budget Plan Includes Largest Tax Hike in U.S. History

Press Release

U.S. Rep. Mark Souder expressed disappointment today in the Democrat's budget plan for fiscal year 2008, which includes the largest tax hike in American history.

"The Democrats have proposed a budget that includes the largest tax hike in American history," Souder said. "This tax increase will directly affect hundreds of thousands of Hoosier families. Laws passed by the Republican Congress in 2001 and 2003 that reduced the tax burden on hardworking Americans created jobs and economic growth. I'm sorry that the Democrats plan to let them expire."

"This should come as no surprise, considering—on the very first day they took control of Congress—House Democrats changed the rules so as to more easily allow a tax hike of this magnitude," Souder added.

The Democrat budget plan includes:

• The largest tax increase in American history—the Democrat budget assumes that the 2001 and 2003 tax relief laws will expire;
• Irresponsible new spending above and beyond the President's request—upwards of some $24 billion in spending in 2008 alone; and
• No meaningful entitlement reform.

According to the U.S. Treasury Department, the 2001 and 2003 tax relief laws reduced rates and lowered tax bills for more than 751,000 married couples in Indiana who benefited from an increase in the standard deduction for joint filers to double the amount for single filers. Additionally, 611,000 Hoosier married couples and single parents benefited from an increased child tax credit from $500 to $1,000.

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