» Taxes

Wash. Examiner: Dems claim tax cuts, GOP calls it spending in disguise

Robert Romano — Fri, 16 Apr 2010 13:34:59 +0000

By: Susan Ferrechio
Chief Congressional Correspondent
April 16, 2010

As protesters rallied outside, Democrats and Republicans engaged in a battle over taxes in the Capitol, with Democrats claiming credit for massive tax cuts while Republicans accused them of actually raising taxes by hundreds of billions of dollars and breaking President Obama’s pledge to not raise taxes on the middle class.

The first volley was fired by House Democrats, who sent a missive to reporters proclaiming they have led Congress to cut taxes by more than $800 billion.

“In the midst of the worst economic crisis since the Great Depression, Congress and the President acted swiftly to bring relief to our nation’s families and businesses, and create good-paying jobs,” Speaker Nancy Pelosi, D-Calif., said in a statement. “A critical element of that relief and recovery effort was tax cuts for the middle class and small business owners.”

Pelosi credited the $850 billion stimulus bill, saying more than one-third of it is comprised of tax relief for the middle class.

Democrats are also touting the new health care law as a tax cut because many people will get tax credits if they purchase health insurance.

Incredulous Republicans disputed the claim, saying much of what Democrats call tax cuts is actually government spending, and that the party has passed middle class tax increases and is planning more, including a potential fuel tax, a tax on those who do not purchase health insurance and a tax on expensive insurance plans.

Get full story here.

Pence: ObamaCare Taxes Middle Class…Again

Robert Romano — Tue, 13 Apr 2010 17:38:06 +0000

$15.2 Billion Tax Increase on Out of Pocket Medical Expenses

Beginning January 1, 2013, ObamaCare limits the medical expense deduction, which will raise taxes by $15.2 billion over ten years, according to the Joint Committee on Taxation.

Under current law, if out-of-pocket medical expenses, including health insurance premiums and medical procedures not covered by health insurance, exceed 7.5 percent of Adjusted Gross Income (AGI), then those expenses are fully deductible.

Americans who have high out-of-pocket medical costs or are sick take this deduction. Even some of the most expensive and comprehensive health insurance plans – including FEHBPs – don’t cover high-cost medical procedures, such as in-vitro fertilization where the cost for the procedure and the prescription drugs can run as high as $20,000 per treatment and where families can have multiple treatments in a year.

ObamaCare increases the medical expense threshold from 7.5 percent of AGI to 10 percent on most Americans (seniors get a three-year reprieve) beginning on January 1, 2013. The Joint Committee on Taxation estimates the new limit will affect 14.8 million taxpayers — 14.7 million of whom will earn less than $200,000 a year!

For further reading, click here.

For previous ObamaCare Flatlines, visit www.gop.gov.

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Hoyer: Republicans Can’t Take Yes For An Answer

Robert Romano — Tue, 13 Apr 2010 17:36:41 +0000

GOP Calls for Tax Cuts While Voting Against Hundreds of Billions in Cuts

“[F]ederal taxes are very considerably lower by every measure since Obama became president…. According to the JCT, last year’s $787 billion stimulus bill, enacted with no Republican support, reduced federal taxes by almost $100 billion in 2009 and another $222 billion this year.” – Bruce Bartlett, Domestic Policy Advisor under President Reagan and Treasury Department economist under President George H.W. Bush, 3/19/2010

The American Recovery and Reinvestment Act was one of the first pieces of legislation signed into law in the 111th Congress. It included tax cuts for 95% of working Americans and resulted in a 10 percent increase in the average tax refund this year. Republicans voted in opposition against that bill and those tax cuts. And they didn’t stop there. Throughout the 111th Congress, Republicans have stood against numerous tax cuts that will benefit millions of American families and businesses this tax season and beyond. Republicans say we need to cut taxes? Democrats have. Republicans just can’t take yes for an answer.

BILL	TAX CUTS & CREDITS	REPUBLICAN VOTE
American Recovery and Reinvestment Act (Signed into law)	Tax cuts for families including the Making Work Pay tax credit to 95% of working Americans; expansion of the child tax credit; the first-time homebuyer tax credit; and the college tax credit. Tax incentives for businesses to create jobs by increasing bonus depreciation; allowing small businesses to immediately write-off new equipment purchases; and providing a 5-year carryback for net operating losses.	NO
Health Reform (Signed into law)	Tax credits to help families pay for health coverage. Tax credits for small businesses to help them offer coverage to employees.	NO
Hiring Incentives To Restore Employment (HIRE) Act (Signed into law)	Payroll tax holiday for businesses that hire unemployed workers and retain them.	NO
Small Business and Infrastructure Jobs Act (Passed by the House)	Tax incentives to help spur investments in small businesses.	NO
Permanent Estate Tax Relief (Passed by the House)	Ensures that nearly all estates (99.8%) are exempt from taxes.	NO

Click here to view in PDF.

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Update on Union/White House Meeting on Health Care Tax Deal

Adam Bitely — Thu, 14 Jan 2010 18:43:28 +0000

From NetRightNation.com:

According to the Washington Post, the deal negotiated between Union leaders and the White House would include only a “temporary” exemption on the 40% tax on Health Care plans. However, that temporary period is not defined.

Right to Work Tax on the Horizon in Health Care Bill?

Adam Bitely — Thu, 14 Jan 2010 16:33:52 +0000