The 60 Second Update with
Congresswoman Cynthia Lummis
1. Is the Obama Budget going to raise my taxes?
The short answer is yes. Under the Obama budget the American people will be saddled with an additional $1.4 trillion in taxes in the middle of a recession. The tax hikes target individuals making over $200,000, many of whom are small businesses whose ability to hire new employees will be critical to our nation’s economic recovery. Moreover, the President’s budget resurrects the death tax that was otherwise scheduled to expire next year. This tax punishes families for building up savings to pass on to their children, which is particularly damaging to small business owners, farmers and ranchers.
The President has claimed that his budget targets only the “wealthiest Americans” and that 95 percent of the country won’t see a tax increase. What the President doesn’t tell you is that his proposed energy policy will tax energy consumption to the tune of $646 billion, affecting everyone who drives a car, heats their home, opens a fridge or turns on a light switch. The Congressional Budget Office estimates that this type of scheme would cost the average household an extra $1,600 per year.
The President has proposed expanding the Make Work Pay tax credit to offset the impact of his new energy taxes. Even with the maximum credit allowed, however, households will still need to pay at least an extra $800 even by conservative estimates. Plus if you’re in school, unemployed, or retired, you will receive no relief from Make Work Pay. This is definitely not the tax cut that 95% of Americans are expecting.