Hide Your Wallets, D.C. Dems are Coming….
Republican Senator Mitch McConnell writes:
While most of the media were busy covering the latest developments on the Iraq funding bill or the bipartisan immigration proposal, congressional Democrats on Thursday quietly passed a budget creating the framework for the largest tax increases in American history…
Everyone takes a hit. Forty-five million working families with two children will see their taxes increase by nearly $3,000 annually. They’d see the current child tax credit cut in half — from $1,000 to $500. The standard deduction for married couples is also cut in half, from the current $3,400 to $1,700. The overall effect on married couples with children is obvious: Far from shifting the burden onto the wealthy, the Democratic budget drives up taxes on the average American family by more than 130 percent.
Seniors get hit hard too. Democrats like to crow that only the richest one percent of Americans benefit from the stimulative tax cuts Republicans passed in 2001 and 2003. What they rarely mention is how much seniors benefited from those cuts in the form of increased income as a result of lower taxes on dividends and capital gains. More than half of all seniors today claim income from these two sources, and the Democratic budget would lower the income of every one of them by reversing every one of those cuts.
With federal spending surging above $24,000 per household per year, the incoming Democratic majority of Congress promised to restore fiscal responsibility in Washington. Instead of paring back the growth of government, however, Congress came to agreement in conference on a budget resolution that:
* Raises taxes by $721 billion over five years, and a projected $2.7 trillion over 10 years, or more than $2,000 per household;
* Includes 23 reserve funds that could be used to raise taxes by hundreds of billions more;
* Increases discretionary spending by nearly 9 percent in FY 2008 and does not terminate a single wasteful program;
* Completely ignores the impending explosion of Social Security, Medicare, and Medicaid costs; and
* Creates rules that bias the budget toward tax increases.
Congress’s budget resolution is consistent with the Democratic majority’s budget agenda so far. In just a few months in Washington, the Democratic Congress has tacked $21 billion in unrelated deficit spending onto the Iraq war emergency bill; passed a $7 billion farm bailout—without any offsets—that violates the majority’s own pay-as-you-go (PAYGO) rules by adding new mandatory spending; and waived its own PAYGO rules in order to add new mandatory spending as part of a bill to expand the House of Representatives. Coming on the heels of these initiatives, Congress’s irresponsible budget resolution is hardly a surprise.
President Bush has vowed to veto the Democratic budget.