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Blackburn Sees Through Democrat Tax Hike / Tax Equity "Bait and Switch"

Press Release

Location: Washington, DC

Blackburn Sees Through Democrat Tax Hike / Tax Equity "Bait and Switch"

One Year Sales Tax Credit a Rouse for Massive Tax Hike, Excessive Earmarks

Rep. Marsha Blackburn (TN-7) today announced that she will vote against a Democrat bill that offers a weak extension of tax equity along with a massive tax hike and yet more egregious earmarks. The single year of sales tax deductibility included in the Democrat bill is immediately overcome by a permanent $55 billion dollar tax increase in the very same "extender" legislation. Representative Blackburn, who led the fight in 2003 to secure income tax equity for Tennessee in the form of sales tax deductibility, will vote for the Republican motion to force real sales tax deductibility, free from earmarks and tax increases.

Displaying more legislative ambition than they have attempted thus far this year, along with a corresponding disregard for the taxpayer, Democrats also pushed through the final votes for the largest tax increase in American history. The permanent $683 billion tax hike is estimated to cost 7th District families $3,666 more each year. Marsha Blackburn voted "No".

"Once again, Democrats are picking Tennesseans' pockets, and once again House Republicans have stood up to slap their hands away. Tennesseans already have too much month left at the end of their money, they don't need a $3,666 tax hike to make things even harder. Tennesseans deserve real sales tax deductibility, not a deduction for a single year accompanied by still another tax hike. Today, Democrats took money out of Tennesseans' wallets and handed it over to trial lawyers. Tennesseans are not fooled by this bait and switch tactic and neither am I."

What's Wrong With The Democrat Tax Extenders Bill: The bill would extend sales tax deductibility for just a single year while at the same time:

* Tax Hike: A $55 billion tax increase over 10 years and a harmful corporate estimated tax payment shift gimmick.

* No AMT: The tax-extender bill does not contain any repeal or inflation adjustment to the Alternative Minimum Tax.

* Cash for Trial Lawyers: The bill grants a special $1.57 billion tax cut over ten years for trial lawyers in certain contingency-fee cases.

* Cash for New York City: The bill essentially provides a $2 billion earmark for New York City for any transportation infrastructure project.

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