Tax Day is Here, Prepare for Bigger Bill Next Year
Bellefonte, PA – With the arrival of Tax Day, millions of Americans are preparing to do one of three things: file their taxes, file for a tax extension, or simply not pay their taxes at all. And in this time of economic uncertainty, many Americans will fall into that later category, according to the Los Angeles based Nationwide Tax Relief – whose calls are up 280 percent this year.
“With the economy still floundering, unemployment approaching double digits, and hard working Americans struggling to make ends meet, the last thing folks should have to worry about is higher taxes,” said U.S. Representative Glenn ‘GT’ Thompson, R-Howard. “But as we mark yet another ‘Tax Day’, that is precisely what will occur this time next year if President Obama, Speaker Pelosi and Leader Reid get their way.”
With government spending scheduled to hit $3.5 trillion this fiscal year, the President has proposed several new taxes to help fund this spending and expansion of government. Listed below are a few of the tax increases that the President has proposed in his budget:
• Small Business TAX: In 2010, the President’s budget will increase taxes on all taxpayers that earn more than $200,000 individually, or $250,000 as a couple. The majority of the burden for this $637 billion tax increase will be borne by small business owners (who pay taxes on this income as part of their individual returns). Small businesses create 7 out of every 10 new jobs in America. These new taxes will stifle job creation and economic growth in the midst of a recession.
• Energy TAX: The President’s budget proposes to raise taxes by at least $646 billion on consumers of oil, coal, and natural gas through a complicated “cap and trade” program that will increase the cost of energy for every American. These carbon-based fuels provide about 85 percent of all energy output in the U.S. This new national energy tax will increase the cost of energy by up to $3,128 per household annually, taking more money out of the pockets of hard working families struggling to pay their bills each month.
• Charitable Giving TAX: The budget caps the value of itemized deductions at 28 percent for those with an income over $250,000 (married) and $200,000 (single), which will reduce charitable giving by $9 billion a year. The current economic crisis has severely damaged charitable organizations’ ability to provide for people who are most affected by the recession, and the budget would leave these charities with at least a $9 billion deficit.
• Death TAX: The President’s budget reinstates the death tax scheduled to be fully repealed in 2010.
• Energy Producer TAX: The President’s budget imposes $31 billion in punitive new taxes on domestic energy production over the next ten years, encouraging U.S. companies to move jobs overseas and increasing our overall dependence on foreign energy supplies.
“Just two days ago, Americans celebrated Tax Freedom Day – a day that marks when Americans have worked enough hours to pay their tax bill for the year,” continued Thompson. “Think about that for a second. The average American works from January 1 through April 13 for the Government – a staggering statistic that will only increase should the Democratic Leadership in Washington get their way.
“Working with my fiscally responsible Republican and Democratic colleagues, I’ll continue to advocate for smart government, commonsense policies that leave more money in taxpayers’ pockets, and celebrate and encourage small businesses and domestic energy companies to remain and expand in America – not overseas.”