Allowing Bush-era tax cuts to expire means higher taxes for all

According to an analysis by a tax consulting firm, allowing the soon to expire Bush-era tax cuts to expire at the end of the year will mean increased taxes for nearly every taxpayer in the United States; not just the wealthiest as the Democrats would have you believe.

A typical family of four with a household income of $50,000 a year would have to pay $2,900 more in taxes in 2011; the same family making $100,000 would see its taxes rise by $4,500; with an income of $500,000 the family would pay $10,800 more in taxes; and with income of $1 million the increase would be $53,200. These estimates were based on total household income including wages, capital gains, and qualified dividends. The estimates also take into account typical deductions at each income level.

Democrats have been arguing that tax cuts enacted in 2001 and 2003 under former President George W. Bush provided a windfall for the wealthy. However, they also reduced taxes for the working poor and the middle class; the tax cuts reduced marginal income tax rates at every level. In addition those tax cuts also provided a wide range of income tax breaks for education, families with children, and married couples. Taxes on capital gains (selling a home for more than the purchase price) and dividends (retirement plans included) were reduced.

House Republican Leader John Boehner of Ohio said he wants an up-or-down vote on extending all the tax cuts before congressional elections in November. House Speaker Nancy Pelosi won’t commit to vote on any tax proposals before the election.

“Raising taxes on anyone, especially small businesses, is the wrong thing to do in a struggling economy,” Boehner said. “On the issue of job killing tax hikes the American people are not going to accept anything less than the vote that they deserve.”

Voters, it is time to pressure Congress. We want and deserve to know how our lawmakers will vote on this issue BEFORE we vote on whether they keep their jobs representing us. Tell your representative to vote to extend the Bush-era tax cuts.