Jan 30, 2009
Washington Post - Dems: House GOP’s Stimulus Plan Would Actually Raise Taxes For Many Americans
GOP leaders — led by John Boehner and Eric Cantor — have spent days bashing the economic stimulus package being touted by President Obama and Democrats because it doesn’t sufficiently cut taxes.
But is it possible that the alternative plan pushed by House Republicans would have actually raised taxes for untold numbers of Americans?
That’s the surprising claim that House Democratic staffers who have taken a look at the plan are now making. They insist to me that the Republicans did some almost comic number shuffling in drawing up the plan, the upshot of which would be that the actual tax bill would go up for many.
And they’re now preparing to make an issue of this in the districts of Republican House members by painting Republicans as the would-be tax hikers.
This is a bit in the weeds. But here goes. According to Dems on the House Ways and Means Committee who have crunched the numbers, the GOP plan, which would reduce income taxes across the board, would as a result shove millions over on to the Alternative Income Tax rate, which is higher. Dem Ways and Means spokesperson Matthew Beck emails me this statement making the case:
“In 2008, 4.2 million Americans had to pay the Alternative Minimum Tax (AMT). The Republican proposal would lower marginal tax rates for individuals, but would not reduce AMT rates. Current law requires you to pay the greater of the two rates, so many of those receiving this lower marginal rate would now be held liable for the AMT.”
“There is no question that Congress needs to — and will — act to prevent the number of taxpayers hit by the AMT from growing to an estimated 26 million this year. However, we confirmed with the non-partisan Joint Committee on Taxation that 26 million people would still be forced to pay the AMT this year under the GOP bill. Essentially, their tax bill would give with one hand and take away with the other, leaving 26 million families without the tax cut they promised in their bill.”
Make of this argument what you will, but the fact is that this is going to be an official attack line coming from the DCCC, which is right now drawing up press releases to push this line in the districts of at least a dozen House members across the country who backed the GOP alternative. The hits accuse each member of voting “to raise taxes on 22 million hard working Americans.”
I’ve checked in with the staffers in GOP Rep. Cantor’s office, who will undoubtedly be eager to explain why they see this as completely bogus, and will update when I hear back.
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