--Why did Congressman Bass vote for a budget that raises taxes by $2 trillion and contains phony and fraudulent spending cuts?--
WASHINGTON, March 29, 2012 /PRNewswire-USNewswire/ -- The following release is being issued by Americans for Tax Reform:
On Wednesday night, Congressman Charlie Bass (R-N.H.) voted for a budget which calls for nearly $2 trillion in tax increases and contains phony and fraudulent spending cuts. As one of only 38 Congressmen in the 435-member U.S. House of Representatives to do so, Congressman Bass should answer to his constituents as to why he supports this budget.
The budget in question was offered by Congressman Jim Cooper (D-Tenn.) and Steve LaTourette (R-Ohio). It seeks to mirror the recommendations of President Obama's Debt Commission, often known as "Simpson-Bowles" for the co-chairs of that commission appointed by President Obama.
The budget has the following elements:
$2 trillion in Higher Taxes:
--The budget calls for raising income taxes by sharply curtailing income tax deductions and credits. It would greatly limit such common, everyday tax breaks as the mortgage interest deduction, charitable deduction, and tax-free health insurance from work. The budget seeks to raise $1.2 trillion over the next decade from these tax hikes, even after a reduction in tax rates
--In addition, the budget calls for tax brackets and other tax provisions which increase with inflation to grow at a slower rate. This is a tax increase on every American who pays taxes. This would raise taxes by $89 billion over the next decade
--The budget also calls for more income to be subject to Social Security payroll taxes. More and more wages and self-employment income would have to pay taxes into the now-bankrupt Social Security system. Roughly speaking, the amount of wages and self-employment income subject to the 12.4% Social Security tax would grow from about $100,000 today to about $150,000 under this budget. This is estimated to raise taxes by $77 billion over ten years
In addition to the $2 trillion in tax hikes in this budget, it is also filled with fraudulent "spending cut" gimmicks:
--The LaTourette-Cooper budget double counts spending cuts that have already happened. $500 billion of their supposed savings comes from the cuts already set in law by the August 2011 debt limit deal.
--Taken together, the budget plan includes almost $1 trillion in phony spending cuts. This fraudulent accounting means the purported savings from discretionary spending cuts amounts to only $200 billion. Even giving the authors credit for all the claimed mandatory spending cuts, their fake discretionary cuts means the bill – at best – offers one dollar in spending cuts for every one dollar in tax hikes.
Americans for Tax Reform is a non-partisan coalition of taxpayers and taxpayer groups who oppose all tax increases. For more information or to arrange an interview please contact John Kartch at (202) 785-0266 or by email at [email protected].
SOURCE Americans for Tax Reform