In light of all our posts from yesterday from the Blog Row, we just wanted to update you and note that in fact, the Democrats’ budget plan passed the House by a pretty slim margin yesterday, 216-210.
As this AP article notes, the budget does nothing to rein in entitlement spending and claims to balance the budget by scrapping the recent tax cuts. You can accuse the GOP of rhetoric if you want, but it does seem that any way you slice it, this bill equals a tax increase for most everybody.
We’ve said in this space many times that we pushed for the tax cuts because we know that tax cuts lead to investment and investment leads to growth. That happened and we grew our way out of recession. Federal tax receipts are at an all-time high thank to the tax cuts. Once they sunset, tax receipts will head in the other direction.
Among the taxes sunsetted in the Dems’ plan is the death tax — hitting American small manufacturers hardest. The marriage penalty tax was reinstated and the child tax credit was cut in half. By some estimates, 115 million taxpayers would see their taxes increase on average by almost $1800.
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