Obama Tax Increases on the Middle Class

Democrats Have Increased Taxes by $670 Billion and Counting information from before 2010 election

Commitee on Ways & Means Republicans Ranking Member Dave Camp Report from April 14th, 2010 Go here to download your own copy of the report

Information contained in the report follows:

List Includes 14 Tax Hikes Totaling Over $316 Billion on Middle Class Families
April 14, 2010

Since January of 2009, President Obama and Congressional Democrats have enacted into law gross tax increases totaling more than $670 billion, or more than $2,100 for every man, woman and child in the United States. The list of tax increases includes at least 14 violations of the President’s pledge not to raise taxes on Americans earning less than $200,000 for singles and $250,000 for married couples.

LEGISLATION: Health Care Bill, Public Law 111-148, Public Law 111-152

TAX INCREASES ENACTED   followed by AMOUNT IN BILLIONS OVER 10 YEARS

New tax on individuals who do not purchase government-approved health insurance * $17.0

New tax on employers who fail to fully comply with government health insurance mandates* $52.0

New 40% excise tax on certain high‐cost health plans * $32.0

New ban on the purchase of over‐the‐counter drugs using funds from FSAs, HSAs and HRAs* $5.0

Increase the Medicare tax on wages and self‐employment income by 0.9% and impose a new 3.8% surtax on certain investment income (for individuals over $200,000 and couples over $250,000) $210.2

Increase, from 7.5% to 10% of income, the threshold after which individuals can deduct out of pocket medical expenses* $15.2

Impose a new $2,500 annual cap on FSA contributions * $13.0

New annual tax on health insurance * $60.1

New annual tax on brand name pharmaceuticals * $27.0

New 2.3% excise tax on certain medical devices * $20.0

New 10% tax on indoor UV tanning services * $2.7

New tax on insured and self‐insured health plans * $2.6

Double the penalty for non‐qualified HSA distributions * $1.4

Eliminate the deduction for expenses allocable to Medicare Part D subsidy $4.5

Limit the deduction for compensation to officers, employees and directors of certain health insurance providers $0.6

Require information reporting on payments to corporations $17.1

Impose additional requirements for section 501(c)(3) hospitals $0.4

Make “black liquor” ineligible for cellulosic biofuel producer credit $23.6

Codify economic substance doctrine and impose penalties for underpayments $4.5

Other revenue effects $60.3

LEGISLATION: SCHIP Public Law 111-3; Tobacco tax increase and expanded enforcement authority* $65.515 billion

LEGISLATION: “Stimulus” Public Law 111-5; Repeal guidance allowing certain taxpayers to claim losses of an acquired corporation $6.977 billion

LEGISLATION: UI Benefits, NOL Relief & Homebuyer Credit Public Law 111-92; Federal Unemployment surtaxes extended through June 2011 * $2.578 billion & Delay of rules to reduce the double taxation of worldwide American employers until 2018 (worldwide interest allocation) $20.123 billion

LEGISLATION: HIRE Act Public Law 111-147; Delay of rules to reduce the double taxation of worldwide American employers until 2021 (worldwide interest allocation) $5.948 billion

TOTAL = $670.341 BILLION AND COUNTING…
*VIOLATES PRESIDENT’S PLEDGE TO NOT INCREASE TAXES ON MIDDLE CLASS

Another of a continuing series of articles on taxes by Tea Party Patriot and Proud Hobbit, Robert Davis, 2011

History of the Federal Gas Tax

The gas tax was first imposed by the federal government in 1932, at a mere 1 cent per gallon. It has increased 10 times since President Herbert Hoover authorized the creation of such a tax to balance the budget. Drivers now pay 18.4 cents a gallon in the federal gas tax. Oil companies make 2 cents per gallon, compare that to the 18.4 cents the Federal Govt. gets, who are the greedy ones?

Here are the gas tax rates per gallon through the years, according to U.S. Department of Transportation and Congressional Research Service reports:

1 centJune 1932 through May 1933

Hoover authorized the first ever gas tax as a way to close an anticipated $2.1 billion federal deficit in the fiscal year 1932, a time of severe depression when the government saw revenue in steep decline.

According to the Congressional Research Service report The Federal Excise Tax on Gasoline and the Highway Trust Fund: A Short History by Louis Alan Talley, the government raised $124.9 million from the gas tax in fiscal year 1933, which represented 7.7 percent of the total Internal Revenue collection of $1.620 billion from all sources.

1.5 centsJune 1933 through December 1933

The National Industrial Recovery Act of 1933, signed by Hoover, extended the original gas tax and increased it to 1.5 cents.

1 centJanuary 1934 through June 1940

The Revenue Act of 1934 (fn.1) rescinded the half-cent gas tax increase.

1.5 centsJuly 1940 through October 1951

Congress raised the gas tax by half a cent in 1940, just before the United States entered World War II, to help boost national defense. It also made the gas tax permanent in 1941.

2 centsNovember 1951 through June 1956

The Revenue Act of 1951 (fn. 2) increased the gas tax to generate additional revenue after the Korean War began.

3 centsJuly 1956 through September 1959

The Highway Revenue Act of 1956 established the federal Highway Trust Fund to pay for the construction of an Interstate System, Talley wrote, as well as financing primary, secondary and urban routes. The gas tax was hiked to help generate revenue for the projects.

4 centsOctober 1959 through March 1983

The Federal-Aid Highway Act of 1959 (fn. 3) boosted the gas tax by 1 cent.

9 centsApril 1983 through December 1986

This kind blows away the myth that GOP are friends with big oil. In the largest single gas tax increase, President Ronald Reagan authorized a 5 cent hike in the rate spelled out in the Surface Transportation Assistance Act of 1982, “A proponent of “New Federalism,” President Reagan wanted to adjust the roles of Federal and State governments to give the States greater authority. His State of the Union Address in 1982 proposed to turn back most of the Federal-aid highway program, except the Interstate System, and all transit programs to the States.” (fn. 4) which helped to fund both highway construction and mass transit systems across the country. While Reagan raised taxes on things like gasoline, he dramatically reduced the income tax on all Americans. You could say he raised certain taxes so that everyone had, “skin in the game” as we hear politicians refer to income tax increases on tax payers including small business owners who make $200, 000.00 dollars a year and who already pay the majority of the federal income tax. (fn. 5) (fn.6)

9.1 centsJanuary 1987 through August 1990

The Superfund Amendments and Reauthorization Act of 1986 tacked on a tenth of a cent to help pay for repairing leaking underground storage tanks.

9 centsSeptember 1990 through November 1990

The Leaking Underground Storage Tank Trust Fund had reached its revenue goal for the year and the gas tax was reduced by a tenth of a cent.

14.1 centsDecember 1990 through September 1993

President George H. W. Bush‘s signature on the Omnibus Budget Reconciliation Act of 1990, which was designed to help close the federal budget deficit, increased the gas tax by 5 cents. Half of the new gas tax revenue went to the Highway Trust Fund and the other went to deficit reduction, according to the Transportation Department.

18.4 centsOctober 1993 through December 1995

The Omnibus Budget Reconciliation Act of 1993, (fn.7) signed by President Bill Clinton, increased the gas tax by 4.3 cents to again reduce the federal deficit. None of the additional revenue was put into to the Highway Trust Fund, according to the Transportation Department.

18.3 centsJanuary 1996 through September 1997

The Taxpayer Relief Act of 1997, also signed by Clinton, redirected revenue from the 1993 gas tax increase of 4.3 cents to the Highway Trust Fund. The gas tax dropped a tenth of a cent because the Leaking Underground Storage Tank Trust Fund expired.

18.4 centsOctober 1997 through today

A tenth of a cent was tacked back onto the gas tax because the Leaking Underground Storage Tank Trust Fund was reinstated. (fn. 8)

Footnotes:

1. From Tax Almanac Organization

2. Statement by President Truman on signing Revenue Tax act of 1951

3. From digital documents Interstate Highway System

4. Highway History: In Memory of Ronald Reagan

5. about 49% of Americans pay no income tax at all.

6. Fair tax proposal FAQ’s and homepage

7. from Meet the facts organization

8. Highway History from Federal Highway Administration