Mar 20 2007

Shelby: The Taxman Is Back

U.S. Senator Richard Shelby (R-AL) today commented on Senate Democrats' proposed tax and budget initiatives:

“Due to the significant tax relief passed by the Republican majority over the last five years, every taxpayer who pays income tax will see more money in their pockets this year.  I have always believed that Alabamians deserve more of their hard-earned paychecks than they currently receive.  Money in the hands of Alabamians serves as a far better investment in our economy than it would in the hands of Washington, D.C. bureaucrats.  I have never voted for a tax increase and I never will.  The tax relief has done far too much good to let them expire now.”

“The Democrats' plan will increase taxes by $916 billion, making it the largest tax hike in history.  Furthermore, the Democrats have already allocated the revenue they will create with this tax increase and have been less than honest with the American people about how they will obtain it.”

A brief overview of the tax plan’s impact nationwide:

  • A family of four earning $40,000 will face a tax increase of $2,052.
  • 113 million taxpayers will see their taxes go up by an average of $2,216.
  • Over 5 million individuals and families who would have seen their income tax liabilities completely eliminated will now have to pay taxes.
  • 45 million families with children will face an average tax increase of $2,864.
  • 15 million elderly individuals will pay an average tax increase of $2,934.
  • 27 million small business owners will pay an average tax increase $4,712.

In Alabama:

  • More than 1,300,000 taxpayers statewide who are benefiting from a new lower 10 percent bracket would see their taxes go up.
  • 80,000 married couples in the state would face higher taxes because of an increase in the marriage penalty.
  • 458,000 families with children would pay more taxes due to the expiration of the Child Tax Credit.
  • 217,000 investors, including seniors, would pay more because of an increase on the tax rates on capital gains and dividends.
     

*Source: U.S. Department of Treasury