Taxpayer Watchdog Slams Tax Increases

For Immediate Release                                                                                              Contact: Courtney Mattison (202-525-7492)

September 13, 2021                                                                                                                       

Washington, D.C. – The Taxpayers Protection Alliance (TPA) slammed the House Ways and Means Committee for proposing massive tax increases to pay for the $3.5 trillion reconciliation package.  In a rare weekend session, House Democrats added $2.9 trillion in new taxes and tax increases.

In response, TPA President David Williams offered the following comment:

“This is a budget that is out of touch with taxpayers, consumers, and reality. While most of America was watching college and NFL football over the weekend, House Democrats were trying to raise taxes on Americans of every income level.  With poor jobs numbers, inflation, and a struggling economy, it is irresponsible for Congress to raise taxes.

“These taxes increase will discourage wealth and the increase of taxes on tobacco will break President Biden’s pledge not to raise taxes on those making less than $400,000.  The proposal to raise the corporate tax rate to 26 percent will mean a tax increase on consumers since businesses pass tax increases on to customers.  A 26 percent corporate tax rate will make America less competitive.

“The package is also expected to include a partial repeal of the Tax Cuts and Jobs Act (TCJA), raising individual tax brackets back to pre-TCJA levels. It would also increase capital gains tax rates to match the individual tax rates. This is a form of double taxation, punishing Americans for using their after-tax savings to invest in our economy. After the last year-and-a-half, we should be encouraging more investment, not making it more difficult.

“Raising the tobacco tax and adding a new e-cigarette tax will disproportionately affect lower income folks, discourage people from using less harmful tobacco alternatives and break President’s Biden’s pledge not to raise taxes on people making less than $400,000. This year, TPA examined smoking rates among low-income persons, finding that in 2019, more than 59 percent of current smokers reported earning less $24,999 a year or less. Unfortunately, under this proposal, low-income smokers will be footing the bill.

“These tax increases are a non-starter and should be rejected by every member of Congress who is concerned about the economic well-being of the country.”

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Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy.