Family Hangs in the Balance of New Budget Increased Income Taxes on Families Expected

by Tony Perkins, FRC Blog: As you fill out this year's IRS paperwork, enjoy your family tax breaks. If the new Senate leadership has its way, they may be among your last. This week, Senate Majority Leader Harry Reid (D-NV) unveiled a resolution that calls for a balanced budget by 2012. While it seems like an insurmountable task, liberals have found an easy solution. They'll simply reverse every GOP tax cut and raise an extra $900 billion in revenue.

As part of the plan, Democrats would reinstate the tax penalty on married couples, causing the standard deduction for joint filers to shrink from 200 to 167 percent by 2011. Also, liberals recommend slashing the child tax credit in half, reducing it from $1,000 to $500. Although Congress has managed to whittle the death taxes down to nearly nothing under the current code, Democrats would resurrect them in four short years. Unfortunately, the tax rates would rise substantially in every bracket, even among low-income taxpayers who would be forced to pay Uncle Sam at a 15 percent rate. Under the measure, taxes on both dividends and capital gains would increase by Jan. 2009. ... [Read More]

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