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Contact: Aaron Groen
(202) 225-2071

Democrat FY08 budget will raise taxes by nearly $400 billion over 5 years

WASHINGTON—Congresswoman Virginia Foxx (NC-05) today voted against the Democrat 2008 fiscal year budget proposal, which allows for a $392.5 billion tax increase—the largest in the country’s history.

“The Democrats’ plan is a reckless proposal that would spend $22.5 billion more than President Bush requested—without substantially addressing the spiraling costs of Medicare, Medicaid and Social Security,” Foxx said.  “This massive spending spree means they can no longer hide behind rhetoric about fiscal responsibility.”

Under the Democrat FY08 budget, more than 3.1 million North Carolinians would face a tax increase in 2011 due to assumptions in the budget that allow for the expiration of the 2001 and 2003 tax cuts. When these tax cuts are allowed to expire, the average North Carolina taxpayer would see a tax increase of approximately $2,671 in 2011. 

The expiring tax cuts would mean cuts to the child tax credit – from its current level of a $1,000 credit per dependent, to just $500. This would raise taxes on 31 million Americans with 49 million children by an average of $859 per year.  The budget also assumes that the marriage penalty would return and push married couples into higher tax brackets than if they were filing as singles.

“Congress can balance the budget in five years without raising taxes,” Congresswoman Foxx said.  “I support the Republican budget plan that balances the budget by keeping taxes low, promoting economic growth, and ending excessive waste, fraud and abuse within the federal government.”

“The Democrat budget threatens to kill important tax cuts for North Carolinians,” Foxx said.  “I am disappointed by the Democrat’s failure to follow through on their pledges of fiscal responsibility and their disregard for the value of these tax cuts to the families and workers of this country.”
 

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