Kerry Press Release: Bush Increases Taxes on Middle-Class Families

[Skinner]

For Immediate Release
August 23, 2004

WHY SHOULD WE BELIEVE HIS ATTACKS?
BUSH INCREASES TAXES ON MIDDLE-CLASS FAMILIES

Today, George W. Bush continues to do what he does best: Launch misleading, false attacks and distortions. This time, the Bush campaign is putting out another misleading attack ad, aimed at covering up its record of hurting working families.

“On a day when millions of Americans will lose overtime protections, George W. Bush is falsely attacking John Kerry to cover up the fact that the Bush tax cuts have hurt working families, placing an even greater tax burden on them. The bottom line is that George Bush is out of credibility, and the American people just won’t believe his attacks. John Kerry wants to reduce taxes on 98% of all Americans and 99% of all businesses. He’s fought for middle class tax cuts his entire career. Bush and Cheney, however, can’t come close to making the same claim,” Kerry spokesman Phil Singer.

- Bush Has Increased the Tax Burden on Middle Class Families

- Bush’s “National Sales Tax” Plan Could Result in a 60% Sales Tax

- Bush’s Policies Have Put a $4,332 Hidden Tax on Families

- Both Bush and Cheney Benefited from Higher Gas Prices, Cheney Offered Tax Which Would Have Raised Gas Prices

- Using BC04 Method, Cheney Voted for Tax Increases 144 Times, Including Largest Increase in Peacetime History

BUSH TAX RESULTS = HIGHER BURDEN ON MIDDLE CLASS FAMILIES

WASHINGTON POST NOTED THAT BUSH SHIFTED TAX BURDEN TO MIDDLE CLASS. Washington Post: “Since 2001, President Bush’s tax cuts have shifted federal tax payments from the richest Americans to a wide swath of middle-class families, the Congressional Budget Office has found.” (Washington Post, “Tax Burden Shifts to the Middle,” 8/13/04)

NON-PARTISAN CBO REPORTS BUSH SHIFTED TAX BURDEN TO THE MIDDLE CLASS

- Wealthiest taxpayers saw share of federal taxes drop from 64.4 percent in 2001 to 63.5 percent this year. (CBO)

- Middle-class families saw their tax burden jump from 18.7 percent of Federal taxes to 19.5 percent of Federal taxes. (CBO)

- Bush tax cuts are 70 times larger for top 1 percent of taxpayers than for middle-class families. (CBO)

BUSH’S SALES TAX = 60% HIKE IN SALES TAX ON FAMILIES

Bush Has Refused to Rule Out a National Sales Tax After Expressing Support for It. In response to a question during a campaign event about instituting a national sales tax, Bush said it was an “interesting idea” that “we ought to explore seriously.” When asked about the exchange on Larry King, Bush refused to rule it out, restating that it was, “an interesting idea.” (Bush in Niceville, FL, 8/126/04; CNN, “Larry King,” 8/15/04)

Independent Study Finds National Retail Sales Tax Would Have to be 60% to Cover All Federal Taxes. Brookings Economist William Gale writes, “To replace all federal taxes on a revenue-neutral basis over the next 10 years would require a sales tax rate of about 60 percent.” (William Gale, “A Note on the Required Tax Rate in a National Retail Sales Tax,” 8/12/04)

Nonpartisan Joint Committee on Taxation Says A 57% National Retail Sales Tax Would Be Required. Congress’ non-partisan Joint Committee on Taxation analyzed H.R. 2525 – a national sales tax proposal. They found that it would require a 57 percent tax rate in order to be revenue neutral. (Joint Committee on Taxation, Memorandum, 4/7/2000)

BUSH’S HIDDEN TAX = $4,332 OUT OF THE POCKETS OF FAMILIES

Bush Has Increased Taxes by $2,495 a Family. Bush has placed a hidden tax of at least $3,532 a year on the American family. With economic policies, Bush has driven up the costs of certain goods and services, such as:

- Tuition Increase: $1,207. Nationally, four-year public college tuition and fees increased by an average of $1,207 since Bush took office, a 35 percent increase, the highest three-year increase on record. (Source: The College Board, Trends in College Pricing 2003-04 compared to 2000-01)

- Health Increase: $2,630. Health care premiums for families have increased by an average of $2,630 since Bush took office, a stunning 49 percent increase for families. (Source: Kaiser Family Foundation, Employer Health Benefits Survey 2000 and 2003, www.kff.org)

- Gas Increase: $495. Since George Bush took office gas prices have increased by $0.46 per gallon, a 33 percent increase. At current prices, the average US household would spend $495 more per year on gasoline than when Bush took office. (Source: Energy Information Agency, Petroleum Marketing Monthly, May 2001; AAA Fuel Gauge Report, 7/1/04)

BUSH & CHENEY FOR HIGHER GAS PRICES

Cheney Proposed Oil Tax, Would Have Increased Gas Prices. In October 1986, then-Representative Cheney introduced legislation to create a new import tax that would have increased the price of oil and ultimately the price of gasoline by $1.2 trillion, according to a study by the Congressional Research Service, in coordination with staffers from the Senate Energy Committee. Shortly after introducing the legislation, Cheney said “Let us rid ourselves of the fiction that low oil prices are somehow good for the United States.” (Energy Security Policy Act of 1986, H.R.5667, introduced 10/9/86, 99th Congress 2nd Session, 132 Cong Rec E 1350, Vol. 132, No. 139; Inside Energy/with Federal Lands, 10/13/86; New York Times, 4/6/04)

Cheney Personally Profited from Rising Gas Prices in 2000. Vice President Cheney sold his stock in Halliburton in June 2000 for $5.1 million and his stock increased $1.4 million in value due to rising gas and oil prices that drove up the value of Halliburton stock. (AP, 7/25/00; Boston Globe, 7/25/00)

1987: Bush Tried to Capitalize On an Anticipated Gasoline Shortage As Member of Harken’s Board. In 1987, Harken Oil and Gas Inc., with George W. Bush on the Board of Directors purchased E-Z Serve Inc., which operated more than 900 gas stations in California and other Sun Belt states. The acquisition was an attempt to profit from higher prices that would result from an anticipated “nationwide gas shortage.” At the time of the acquisition, the Dallas-Fort Worth Business Journal reported “Accordingly, Harken’s new strategy is based in part on the belief that a nationwide gas shortage will develop within the next three years. Harken acquired E-Z Serve in anticipation of such a shortage and now plans to begin drilling oil and gas wells in proven fields in order to make full use of E-Z Serve's sales and distribution systems through large reserves.” (Dallas-Fort Worth Business Journal, 9/7/87; Los Angeles Times, 9/23/00)

CHENEY HOUSE RECORD = 144 VOTES FOR HIGHER TAXES

Cheney Supported the Largest Tax Hike in Peacetime History. Cheney voted in favor of the Tax Equity and Fiscal Responsibility Act of 1982 -- the largest peacetime tax hike in history. The plan hiked taxes by $298 billion (over 5 years) in 1993 constant dollars. (HR 4961, 1982 CQ Almanac, vote #289, 84-H; Wall Street Journal, 10/26/94; FY85-90 Federal Budgets, internal calculations; Tax descriptions from the 1982 Congressional Quarterly Almanac)

CHENEY VOTED FOR 144 TAX AND FEE INCREASES THAT BECAME LAW.

- Cheney voted to increase Social Security taxes – increasing 11 Social Security taxes in his career. (1983 CQ Almanac, p. 219-220, HR 1900; 1987 CQ Almanac, pg. 619, Recon. Act 87 HR 3545)

- Cheney repeatedly voted against the child-care tax credit, one of only 53 House members to oppose final passage in 1987. (1987 CQ Almanac, vote 487, 149-H; 1988 CQ Almanac, vote 373, 115-H)

- 1985: Cheney Repeatedly Voted Against a Major Rewrite of the Tax Code Which Benefited the Middle and Lower Classes. In 1985, Cheney repeatedly voted against the Tax Reform Act of 1985 which benefited the middle and lower classes. The Act was the first internal rewrite of the IRS Code since 1954. The bill reduced individual and corporate tax rates and restricted dozens of existing tax breaks. (1985 CQ Almanac, votes 411, 425-428, 134-H, 136-H)

- 1986: Cheney Repeatedly Voted Against a Sweeping Overhaul of the Tax Law. In 1986, Cheney voted against the Tax Reform Act of 1986. The Act contained large reductions in tax rates, and eliminated or curtailed many special tax breaks for both individuals and corporations. President Reagan described the measure as “the best anti-poverty bill, the best pro-family measure and the best job-creation program ever to come out of the Congress of the United States.” Cheney voted against final House passage in 1985. He also voted against the final version, which was passed by the House, 292-136. (AP, 10/22/86; 1986 CQ Almanac, vote 379, 108-H)

- 1987: Cheney Repeatedly Voted Against the Child-Care Tax Credit. In 1987 and 1988, Cheney repeatedly voted against a bill that extended the child-care tax credit, which allowed parents to claim a tax credit for child care expenditures on children 13 years or younger. In 1987, Cheney voted against final House passage of the bill and in 1988, Cheney was one of only 53 House members to vote against the conference report of the bill. The bill passed 230 to 194; the conference report passed 347 to 53. (1987 CQ Almanac, vote 487, 149-H; 1988 CQ Almanac, vote 373, 115-H)

KERRY – EDWARDS = LOWER TAXES

John Kerry and John Edwards Will Cut Taxes for 98 Percent of American Families and 99 Percent of Businesses. In addition, he will:

Propose At Least $250 Billion In Tax Cuts For Health Care, Child Care, and Education - Without Increasing the Deficit By One Dime. As president, John Kerry will close corporate tax loopholes and use some of the money gained from repealing Bush's tax cuts for the wealthiest Americans - families making over $200,000 a year - to pay for tax credits without increasing the deficit by one dime. The Kerry-Edwards tax cuts include:

- A tax credit on up to $4,000 of college tuition; a tax credit to help small businesses and vulnerable workers pay for health care and buy into John Kerry's new Congressional Health Plan; and a tax credit on $5,000 of child care expenses.

- Propose More Than Twice As Much In New Pro-Jobs, Pro-Families Tax Cuts As Bush-Cheney. In total, the Kerry-Edwards plan proposes $419 billion of new tax cuts to help middle-class families and create jobs. This is more than twice as much as the $175 billion in new tax cuts Bush-Cheney are proposing. And the Kerry-Edwards tax cuts would not increase the deficit by one dime.

- Create a New Jobs Tax Credit. Research has demonstrated that new jobs tax credits increase employment. The Kerry-Edwards New Jobs Tax Credit will cover an employer's share of payroll taxes for net new jobs created in manufacturing, other businesses affected by outsourcing, and small businesses. The credit will be available in 2005 and 2006. For example: a medium-sized manufacturing company employs 1,000 workers. If this company hires an additional 100 employees at $40,000 each - bringing the total number of employees to 1,100 - it would receive a tax cut of 3,060 per worker, or $306,000 total. This would roughly offset the additional cost of health care premiums, which have risen about $2,700 under President Bush.

JOHN KERRY HAS A RECORD OF FIGHTING FOR LOWER TAXES FOR FAMILIES.

John Kerry Opposes Marriage Penalty on American Taxpayers - John Kerry opposes the marriage tax penalty and will work to keep Americans from having to pay more in taxes simply because they are married. In the Senate, Kerry voted to do away with marriage penalty because he felt it was penalizing married couples for no reason. "I'm certainly in favor of doing away with the marriage penalty," Kerry said. Recently, Kerry underscored his support for not re-instituting the marriage penalty, "I don't want to roll back the marriage penalty," Kerry said. (Senate Roll Call vote, 1999, #226; 2000, #53; 2001, #112, #144; Washington Times, June 3, 1998; PBS, News Hour with Jim Lehrer, 7/2/03)

Kerry Supports Keeping the Child Tax Credit - John Kerry favors the child tax credit which helps families pay for the upbringing of their children. Kerry has voted for and cosponsored measures to expand the tax credit and ensure it remains in law. While some candidates for President have suggested doing away with the child tax credit, "Kerry said these provisions, among others, should be retained." Kerry has also stated that it was not right to "take away a tax credit for families struggling to raise their children." (Senate Roll Call vote, 2001, #144; 2003, #107, #153; 107th Congress, S.Amdt. 741; Washington Times, Lambro, 8/4/03)

Kerry Supported Small Business Tax Relief. He has been a leader on tax help for small businesses, helping them with capital gains rules that encourage investment in small businesses and creating new deductions and new flexibility for this essential component of the American economy. (108th Congress, S. 842 John F. (MA) (introduced 4/9/2003))

Kerry Support For Military Tax Benefits. John Kerry has repeatedly supported legislation – spearheaded by John McCain – to help our men and women in uniform when it comes to tax day by creating special capital gains tax rules on the sale of a house for members of the military serving away from home. (S309, 106th Congress; S1678, S.AMDT.2157, S.AMDT.2700, S.AMDT.2811, S.AMDT.2812, S.AMDT.2790 107th Congress)

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www.johnkerry.com
Paid for by Kerry-Edwards 2004, Inc.

[DrFunkenstein]

1. Noted And Bookmarked

Lots of great stuff in there!