Broken Promises: Obama's First-Year Tax Hikes On Families Making Less Than $250,000


Posted by Ryan Ellis on Wednesday, January 20th, 2010, 8:00 AM PERMALINK


Sept. 12, 2008: Candidate Obama said the following:
 
“I can make a firm pledge.  Under my plan, no family making less than $250,000 a year will see any form of tax increase.  Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.” (Dover, NH) [Transcript] [Video clip]
 
Feb. 4, 2009:  Speaking before a joint session of Congress, Obama said:
 
“If your family earns less than $250,000 a year, you will not see your taxes increased a single dime.  I repeat: not one single dime.” [Transcript]
 
April 15, 2009: When asked if Obama’s tax pledge applies “to the health care bill”, White House spokesman Robert Gibbs replied:
 
“The statement didn’t come with caveats.”  (White House Briefing) [Transcript]
 
August 3, 2009: Gibbs reiterates Obama’s tax pledge:
 
“I am reiterating the President's clear commitment in the clearest terms possible, that he's not raising taxes on those who make less than $250,000 a year.”[ Transcript]
 
This promise has been broken again and again. 
 
Tobacco Tax Hike (Signed into law by President Obama on Feb. 4, 2009)
  • Small cigar tax hike ($0.65 billion)
  • Large cigar tax hike ($4 billion)
  • Cigarette tax hike ($57.3 billion)
  • Other tobacco products ($2.7 billion)
TOTAL <$250,000 TOBACCO TAXES: $64.7 billion/10 years   

Obama Budget Submission (Feb. 26, 2009)
  • Tax “carried interest” capital gains at ordinary income tax rates ($23.5 billion)
  • Codify “economic substance doctrine” ($4.7 billion)
  • Repeal LIFO accounting for inventories ($61.1 billion)
  • Eliminate advanced EITC (Only outlay effects)
  • “Cap and trade” energy tax ($624 billion)
TOTAL <$250,000 TAX HIKES IN OBAMA BUDGET:    $713.3 billion/10 years

Senate Healthcare Bill (Supported by President Obama)
  • Individual mandate tax ($15 billion)
  • Employer mandate tax ($28 billion)
  • Medicine cabinet tax ($5 billion)
  • HSA early withdrawal tax hike ($1.3 billion)
  • Special needs kids tax ($13.3 billion)
  • Raise “haircut” for medical itemized deduction to 10% AGI ($15.2 billion)
  • STRICKEN Botax--REPLACED Tanning salon tax ($2.7 billion)
TOTAL <$250,000 TAX HIKES IN HEALTH BILL:        $80.5 billion/10 years

TOTAL <$250,000 TAX HIKES IN OBAMA’S FIRST YEAR        $858.5 billion/10 years

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