President Obama’s budget includes $2 trillion in tax hikes over the next decade, more than $400 billion more than previously reported, according to a new Heritage Foundation analysis.
In addition to allowing the 2001 and 2003 Bush tax cuts to expire, raising taxes on job creators and taxing the energy industry, there are $128 billion in new taxes that the media and White House neglected to report on, according to Heritage tax expert Curtis Dubay. That brings the total increase to $1.689 trillion over ten years.
On top of that, the President claims credit for $317 billion in “new” tax cuts that are already on the books. If you subtract out those “cuts”, then you end up with a tax increase of $2,006 billion.
Dubay explains that OMB reports the tax hikes in areas other than the tax section, misleading readers into believing that the President’s tax hikes are smaller than they are in reality. Among them are the “Financial Crisis Responsibility Fee,” better known as the bank tax, which adds another $61 billion to the President’s tax hike total; a $44 billion tax hike from allowing the IRS to adjust a program integrity cap; a $48 billion increase of the unemployment tax; and a $1 billion hike of user fees for commercial navigation of inland waterways.
During this already weak recovery, the last thing America needs is $2 trillion in higher taxes. Instead, Brownfield encourages Congress to consider a pro-growth plan like Heritage’s New Flat Tax.
What do you think of the President’s tax-hike plan?