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The Largest Tax Hike Ever Looms

April 7, 2008 in Main Page | No comments

House Democrat Leadership pushed for and passed a budget that is effectively an economic “depressant”, according to the Investor’s Business Daily. House Speaker Nancy Pelosi rejected extension of the 2001 tax cuts. This rejection hurts those who have the least. Those in the lowest quintile will see an 86% increase in their tax rate. “The overall tax burden will increase by 1.3% in just two years.” This rise amounts to the “third most rapid increase since WWII”. To read more about the largest tax hike ever please click here.

Taxes

As Congress Dithers On Economy, The Largest Tax Hike Ever Looms

By J.T. YOUNG | Posted Thursday, April 03, 2008 4:30 PM PT

After the U.S. economy’s weak performance last quarter, most observers are hoping it can hang on long enough for Washington’s stimulus checks to start arriving next month.

Unwittingly though, Washington policy-makers have created a puzzling paradox.

They rapidly enacted an economic stimulus bill, yet in three years time a much larger and longer flow of resources will begin running in the opposite direction.

As the 2001 tax cuts expire and the alternative minimum tax continues its climb, this quick and sustained return to historically high taxation levels begs the question: If the current policy is an economic stimulant, then won’t the reverse be a depressant?