Largest Tax Increase in History Is Looming

Those tax cuts about which John McCain pontificated, “I cannot in good conscience support a tax cut in which so many of the benefits go to the most fortunate among us at the expense of middle-class Americans who need tax relief.” are going to expire. Kudos to him for smartening up and voting to extend them in 2006. Will he do it again?

Fact Sheet: the Largest Tax Increase in History Is Looming
Congress Needs To Act Now To Prevent Tax Increases

If the President’s tax relief is allowed to expire, every income taxpayer will see an increase. Taxes will increase for 116 million income taxpayers who will see their taxes go up by an average of $1,800. It will force many families to accept a nearly 200 percent tax increase. In addition:

* 48 million married couples will face a $3,007 increase on average. Part of the increase is due to the fact that many married couples will once again be forced to pay more taxes as a married couple than if each were treated as a single.
* 12 million single women with dependents will face a tax increase averaging $1,091.
* 18 million seniors will face a $2,181 average tax increase.
* 27 million small business owners will face a $4,066 tax increase on average.

These pending tax increases will be devastating for average American families. A typical family will pay $500 more per child in taxes, and 43 million families with children will face an average tax increase of $2,323. American families are facing higher costs in the grocery line and at the gas pump. Americans deserve to keep more of their income. If Congress allows the President’s tax relief to expire:

* A single parent with two children earning $30,000 would see an increase of over $1,600 in taxes.
* A family of four earning $40,000 would see an increase of over $2,300 in taxes.
* A family of four earning $50,000 would see an increase of over $2,100 in taxes – an increase 191 percent.
* A family of four earning $60,000 would see a tax increase of approximately $1,901 in taxes – an increase of 70 percent.
* A family of four earning $80,000 would see a tax increase of about $2,000 in taxes.

Democrats in Congress have signaled their support for the massive tax hike by refusing to extend President Bush’s tax relief. If Congress does not act to make the tax relief permanent, the death tax will come back in full force. In addition, the tax rate on dividends will return to a maximum of 39.6 percent and the top tax rate on long-term capital gains will climb from 15 percent to 20 percent.

I don’t mind giving a reasonable amount to Caesar but this is ridiculous. We paid more than 11k last year, and we can’t by any stretch of the imagination by classified as “rich” unless it’s in comparison with people in third world countries. I’m talking three bedroom ranch of about 1100 square feet, 2 Saturns about ten years old, moderate lifestyle, here. We don’t even have cable TV. Another ~2k in taxes – a cut of $166 per month – will hurt.

So the question is, will John McCain step up? This ought to be a no-brainer for him.

____________________
Photo credit: Tracy O