Written by Ryan Ellis, Tax Policy Director at Americans for Tax Reform. Posted with permission from Americans for Tax Reform.
What are the top ten tax hikes in President Obama’s new budget?
There are literally dozens of new tax increases in the FY 2014 Obama budget. In total, they increase taxes by nearly $1 trillion over the next decade. They would permanently bring the federal tax burden to 20 percent of economic output, a level only reached in one year since World War II (FY 2000, when the economy was roaring and tax revenues were pouring into Washington as a result).
Below are the top ten tax increases in President Obama’s budget (all numbers are over a decade):
1. Chained CPI. The budget would change the definition of inflation for all federal budget purposes, including federal tax provisions. Because tax brackets and other tax items are indexed to inflation, slowing down their growth is an income tax increase. This is a tax increase for all Americans who pay income tax, including middle class Americans. In the past, Congress’ Joint Committee on Taxation has estimated that enacted “chained CPI” would be a $100 billion tax increase