The non-partisan libertarian Cato Institute explains that Obama broke his promise not to raise taxes on the middle class.
Excerpt:
How many times have you heard the president and the congressional Democrats say Americans who make less than $200,000 a year have not had, and will not have, any of their taxes increased? Unfortunately, it is not true, and it is likely to become a whole lot worse.
The 111th Congress has already enacted $352 billion in net tax increases and may, in the upcoming lame-duck session, enact the largest tax increases in history, which will hit every man, woman and child — as well as every business in America. The good folks at Americans for Tax Reform (ATR) have put together the data on what the current Democrat-controlled Congress has done already. I have summarized their analysis in the accompanying table.
Here is table:
| Net Change in Taxes 111th Congress (in billions of dollars) |
||
| Legislation (bill number) |
Gross Tax Cuts Enacted | Gross Tax Increases Enacted |
| H.R. 2 S-Chip | 0 | 65.5 |
| H.R. 1 “Stimulus” | 217.6 | 0 |
| H.R. 3590/4872 “Obamacare” | 144.0 | 652.2 |
| H.R. 5297 “Small Business” | 12.0 | 8.0 |
| Totals | 373.0 | 725.7 |
He continues:
The tax increase of $725.7 billion dwarfs the tax cuts of $373 billion, leaving a net tax increase of $352 billion. But it gets worse. Just $107.6 billion of the tax cuts are permanent — the rest are temporary — but all of the $725.7 billion increases are permanent.
The S-Chip bill was funded by an additional $65.5 billion in tobacco tax increases. These increases are paid primarily by lower-income people. Obamacare is funded with a variety of individual and employer mandates, excise tax increases and fees, including a tax on “tanning salons,” adding up to $652 billion in tax increases, before deducting $107 billion in “exchange credits” and $37 billion in small-business tax credits. The vast majority of these tax increases fall on middle- and lower-income people. As with all of the revenue estimates prepared by Congress’ Joint Tax Committee, most of the behavioral effects of these tax changes are ignored — e.g., how many tanning-salon customers will now opt for the sun rather than pay the tax?
The president and most congressional Democrats have been claiming they will make sure no one making less than $200,000 per year will face a tax increase when all of the “Bush tax cuts” expire on midnight Dec. 31. Given they have not been truthful about the tax increases they already have enacted, why should anyone believe these new claims?
Democrats don’t cut taxes, they raise them. Democrats don’t reduce spending, they increase it. Democrats don’t enable businesses to create more jobs, they attack businesses and we get fewer jobs. Those are the facts.
