John Kartch
A Timeline of Obama's $250,000 Tax Pledge
President Barack Obama’s central campaign promise was a “firm pledge” not to raise “any form” of taxes on families making less than $250,000 per year. Rather than immediately and unequivocally re-affirming the tax pledge during interviews, President Obama recently stated that he’s “agnostic” on raising taxes on those making less than $250,00 a year.
This timeline of statements by Obama and White House staff and advisors raises questions understandably troubling to taxpayers:
The Promise -- Sept. 12, 2008: Obama makes a “firm pledge” not to raise “any form” of taxes on those making less than $250,000 per year:“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]April 1, 2009: After Obama broke his “firm pledge” when he signed into law a steep hike in the federal excise tax on tobacco, White House spokesman Reid H. Cherlin attempts to claim that the Obama pledge only applies to “income or payroll taxes”:“The president's position throughout the campaign was that he would not raise income or payroll taxes on families making less than $250,000, and that's a promise he has kept.” (Associated Press interview) [Permalink]April 15, 2009: During a White House press briefing, when challenged as to how Obama’s tax pledge squares with his tax hike on tobacco, White House spokesman Robert Gibbs replies:“People make a decision to smoke.” [Transcript]April 15, 2009: Moments later, when asked if Obama’s tax pledge applies “to the health care bill”, Gibbs replies:“The statement didn’t come with caveats.” (White House Briefing) [Transcript]June 28, 2009: When challenged on ABC’s This Week with George Stephanopoulos as to whether Obama’s tax pledge applies to healthcare reform, White House Advisor David Axelrod refuses three times to affirm the pledge and replies:“One of the problems we've had in this town is that people draw lines in the sand and they stop talking to each other. And you don't get anything done.” [Transcript]June 29, 2009: Questioned about David Axelrod’s comments made the day before, White House spokesman Robert Gibbs refuses seven opportunities to affirm Obama’s tax pledge, saying only:“We're going to let the process work its way through. All right?” [Transcript]August 2, 2009: Appearing on ABC’s This Week with George Stephanopoulos, Treasury Secretary Tim Geithner refuses to rule out a pledge-breaking tax hike after being given several opportunities to do so:“I think what the country needs to do is understand we're going to have to do what it takes, we're going to do what's necessary.” [Transcript]August 2, 2009: On NBC’s Meet the Press, National Economic Council Director Larry Summers also refuses to rule out a tax hike:“It is never a good idea to absolutely rule things out, no matter what.” [Permalink]August 3, 2009: Questioned about the previous day’s comments by Geithner and Summers, White House Spokesman Robert 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]Sept. 20, 2009: On ABC’s This Week, hosted by George Stephanopoulos, Obama claims that the Baucus plan’s excise tax on the uninsured would not break his tax pledge, denying that it is in fact a tax, even after Stephanopoulos reads him the dictionary definition:STEPHANOPOULOS: I -- I don't think I'm making it up. Merriam Webster's Dictionary: Tax -- "a charge, usually of money, imposed by authority on persons or property for public purposes."OBAMA: George, the fact that you looked up Merriam's Dictionary, the definition of tax increase, indicates to me that you're stretching a little bit right now. Otherwise, you wouldn't have gone to the dictionary to check on the definition. I mean what...STEPHANOPOULOS: Well, no, but...OBAMA: ...what you're saying is...STEPHANOPOULOS: I wanted to check for myself. But your critics say it is a tax increase.OBAMA: My critics say everything is a tax increase. My critics say that I'm taking over every sector of the economy. You know that.Look, we can have a legitimate debate about whether or not we're going to have an individual mandate or not, but...STEPHANOPOULOS: But you reject that it's a tax increase?OBAMA: I absolutely reject that notion. [Transcript]Nov. 1, 2009: On ABC’s This Week, hosted by George Stephanopoulos, White House Senior Counsel Valerie Jarrett refuses to unequivocally affirm Obama’s tax pledge:STEPHANOPOULOS: “So are you saying that the president will not sign this proposal if it does indeed raise taxes on the middle class?”VALERIE JARRETT: “What I'm saying to you, George, is, let's let the process go forward…”STEPHANOPOULOS: “So he will not -- bottom line, he will not violate that commitment, is what you're saying?”
VALERIE JARRETT: “What I'm saying is that he is confident that a bill that's going to be passed is going to be consistent with his parameters, yes.” [Transcript]For a printable pdf version, click here.
More from Americans for Tax Reform
Obama Should Cooperate with Boehner and Cantor to Force Debate on Spending Reductions
On Thursday, House GOP leader John Boehner and GOP Whip Eric Cantor sent a letter to President Obama offering their help in forcing votes on proposed spending reductions and terminations. The GOP Whip's backgrounder on expedited process for consideration of proposals to cancel spending can be found here.)
Today, ATR president Grover Norquist and Center for Fiscal Accountability executive director Sandra Fabry sent a letter to the President urging him to work with Boehner and Cantor to achieve these reductions and terminations.
The text of the Norquist/Fabry letter is pasted below, and the PDF is here:
Dear Mr. President:
We write to urge you to take up House GOP Leader John Boehner’s and GOP Whip Eric Cantor’s offer to help you force a vote on your proposed spending reductions and terminations.
In their letter to you, Leader Boehner and Whip Cantor alluded to the possibility of invoking the process under the Congressional Budget and Impoundment Control Act of 1974, which would allow a minority of the House to bring the discretionary program terminations and reductions contained in your budget to the floor.
According to the stipulations of the Act, you can send up in the form of a discrete, specific message asking that the funds be rescinded. One-fifth of the House can bring a motion to discharge spending reduction and rescission proposals if the relevant committee of jurisdiction fails to act on the proposals. While not agreeing with all your suggested cuts and terminations, Leader Boehner and Whip Cantor have vowed that they will introduce each of your proposals as stand-alone legislation, and we urge you to take them up on their offer.
Taxpayers are fed up, and they have made their dissatisfaction clear over the course of the past few months – in town hall meetings, protest marches, and recent elections. As they are struggling to make ends meet and are forced to tighten their belts, they demand that their government do the same. Unfortunately, however, rather than seeing their elected officials work on meaningful legislation to reduce federal spending, taxpayers have had to witness drastic increases in the same, and just this week yet another massive hike in the federal debt ceiling.
The crisis is now – and so is the time to act. While much more remains to be done, your termination and reduction proposals are a first step in the right direction.Consequently, we urge you to prioritize your spending cut proposals and work with Leader Boehner and Whip Cantor to ensure that they be debated by Congress in an expedited manner.
Grover Norquist, president, Americans for Tax Reform
Sandra Fabry, executive director, Center for Fiscal Accountability
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Does Martha Coakley Care About<br> Obama's Tax Promise to Working Families?
Does Senate candidate Martha Coakley care about Obama’s “firm pledge” not to raise “any form” of taxes on families making less than $250,000 per year? It is a fair question to ask as Coakley recently stated: “we need to get taxes up”.
Coakley has endorsed the Senate bill, which contains seven tax hikes on these families. Obama’s promise remains for all to see at the Change.gov website: “no family making less than $250,000 will see their taxes increase.” White House spokesman Robert Gibbs has confirmed that there are “no caveats” to Obama’s promise.
Listed below are the seven Obama-pledge-breaking tax hikes (Page numbers reference original Reid-Obama bill unless noted):
Individual Mandate Tax (Page 324/Sec. 1501/$15 bil/Jan 2014): Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax according to the higher of the following (page 71 of manager’s amendment updates Reid bill):
|
|
Single
|
2 Persons
|
3+ Persons
|
|
2014
|
$495/0.5% AGI
|
$990/0.5% AGI
|
$1485/0.5%/AGI
|
|
2015
|
$495/1.0% AGI
|
$990/1.0% AGI
|
$1485/1.0%/AGI
|
|
2016
|
$495/2.0% AGI
|
$990/2.0% AGI
|
$1485/2.0%/AGI
|
Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS).
Employer Mandate Tax (Page 348/Sec. 1513/$28 bil): If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $750 for all full-time employees. Applies to all employers with 50 or more employees.
If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer).
Small business owners pay their taxes on their owners’ personal tax returns. Since this provision does not exempt business owners making less than $250,000 per year, this employer mandate tax will violate President Obama’s promise in some cases.
Tax Hikes on Healthcare Spending Accounts
Medicine Cabinet Tax (Page 1997/Sec. 9003/$5 bil): No longer allowable to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin)
HSA Withdrawal Tax Hike (Page 1998/Sec. 9004/$1.3 bil): Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
FSA Cap (Page 1999/Sec. 9005/$14.6 bil): Imposes cap on FSAs of $2500 (now unlimited). Indexed to inflation after 2011 (added on page 363 of manager’s amendment).
Tax Hikes on Medical Spending for Those Making Less Than $250,000
Raise “Haircut” for Medical Itemized Deduction from 7.5% to 10% of AGI (Page 2034/Sec. 9013/$15.2 bil): Waived for 65+ taxpayers in 2013-2016 only
Tax on Indoor Tanning Services (Page 373 of Manager’s amendment/$2.7 billion/July 1, 2010): New 10% excise tax on indoor tanning salons
More from Americans for Tax Reform
Norquist to Address First Annual NYC Conservative Leadership Conference
Americans for Tax Reform president Grover Norquist will be among a broad range of conservative leaders to give remarks at the First Annual Conservative Leadership Conference, taking place at the Union League Club in New York City on Jan. 21-22.
The NYC Conservative Leadership Conference will feature leading voices in the conservative movement, book signings by the nation’s leading conservative authors, and hands-on training sessions from grassroots activism to media strategy.
“As the threats to our liberty are mounting by the day, this will be an exciting and important conference and I encourage all conservatives in the New York area to register and attend,” said Grover Norquist, president of Americans for Tax Reform, a co-sponsor of the conference.
To register for the conference or to learn more, visit www.TheHarbourLeague.org or call 410-753-4560.
WHO: Rich Lowry, Editor of the National Review; Kate O'Beirne, President of National Review Institute; Herb London, President of the Hudson Institute; Andrew McCarthy, Grover Norquist, President of Americans for Tax Reform; Eli Gold, President of the Harbour League; John Fund of the Wall Street Journal; Roger Kimball, Publisher of Encounter Books; Matthew Mark Horn, Co-Chair, Harbour League’s National Security Working Group and Executive Director, AJCongress; Mike Long, Chairman, NY Conservative Party; Colleen Holmes, Executive Director, Eagle Forum; Heather Mac Donald of the Manhattan Institute; Fred Siegel, City Journal's Contributing Editor; Honorable Rafael L. Bardaji (National Security Advisor to Jose Maria Aznar, Fmr PM of Spain), and many more.
WHAT: NYC Conservative Leadership Conference
WHEN: January 21 - 22, 2010
WHERE: The Union League -- 38 East 37th Street (at Park Avenue); New York, NY 10016
RSVP: Visit www.TheHarbourLeague.org or call 410-753-4560.
CO-SPONSORS: Americans for Tax Reform, National Review Institute, Manhattan Institute, Eagle Forum, Institute for Liberty, Conservative Economist, Focus on the Family and the Indian American Republican Council.
More from Americans for Tax Reform
Sen. Ben Nelson Will Violate His Tax Pledge if He Votes for Senate Health Bill
If Sen. Ben Nelson (D-Neb.) votes for cloture on the Manager’s Amendment or on final passage of the Senate healthcare bill, he will violate his Taxpayer Protection Pledge – a written commitment Nelson made to Nebraskans and the American people.
“Senator Nelson promised the people of Nebraska that he would vote against any tax increases,” said Grover Norquist, president of Americans for Tax Reform. “The Democrat bosses claim Senator Nelson has promised to vote for a bill to give the government more control over health care. That bill includes 18 different tax increases.”
When Sen. Nelson ran for the U.S. Senate, he made a written Pledge to his constituents to oppose any net income tax hikes. He is bound by that Pledge for the duration of his career as a senator. The Senate healthcare bill contains nearly $500 billion in new tax hikes over the next decade, including billions in income tax hikes.
Sen. Nelson’s signed Taxpayer Protection Pledge may be viewed here.
More from Americans for Tax Reform
Reid's Manager's Amendment Employs the Terms "Tax", "Taxable", and "Fee" 68 Times
A word search of Sen. Harry Reid’s 383-page Manager’s Amendment reveals that the terms “tax”, “taxable” and "fee" are employed a total of 68 times.
Word counts of key terms are as follows:
Tax:
21 times
Taxable:
30 times
Fee:
17 times
Require:
28
Shall:
617
More from Americans for Tax Reform
Senate Health Bill Now Contains Seven Tax Hikes on Families Making Less than $250,000
With the release of Sen. Harry Reid’s Manager’s Amendment, the Senate healthcare bill now contains seven tax hikes on families making less than $250,000 per year.
Each of the seven tax hikes are in violation of President Obama’s “firm pledge” not to raise “any form” of taxes on these families. Obama’s promise remains for all to see at the Change.gov website: “no family making less than $250,000 will see their taxes increase.” White House spokesman Robert Gibbs has confirmed that there are “no caveats” to Obama’s promise.
Listed below are the seven Obama-pledge-breaking tax hikes (Page numbers reference original Reid-Obama bill unless noted):
Individual Mandate Tax (Page 324/Sec. 1501/$15 bil/Jan 2014): Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax according to the higher of the following (page 71 of manager’s amendment updates Reid bill):
|
|
Single
|
2 Persons
|
3+ Persons
|
|
2014
|
$495/0.5% AGI
|
$990/0.5% AGI
|
$1485/0.5%/AGI
|
|
2015
|
$495/1.0% AGI
|
$990/1.0% AGI
|
$1485/1.0%/AGI
|
|
2016
|
$495/2.0% AGI
|
$990/2.0% AGI
|
$1485/2.0%/AGI
|
Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS).
Employer Mandate Tax (Page 348/Sec. 1513/$28 bil): If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $750 for all full-time employees. Applies to all employers with 50 or more employees.
If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer).
Small business owners pay their taxes on their owners’ personal tax returns. Since this provision does not exempt business owners making less than $250,000 per year, this employer mandate tax will violate President Obama’s promise in some cases.
Tax Hikes on Healthcare Spending Accounts
Medicine Cabinet Tax (Page 1997/Sec. 9003/$5 bil): No longer allowable to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin)
HSA Withdrawal Tax Hike (Page 1998/Sec. 9004/$1.3 bil): Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
FSA Cap (Page 1999/Sec. 9005/$14.6 bil): Imposes cap on FSAs of $2500 (now unlimited). Indexed to inflation after 2011 (added on page 363 of manager’s amendment).
Tax Hikes on Medical Spending for Those Making Less Than $250,000
Raise “Haircut” for Medical Itemized Deduction from 7.5% to 10% of AGI (Page 2034/Sec. 9013/$15.2 bil): Waived for 65+ taxpayers in 2013-2016 only
Tax on Indoor Tanning Services (Page 373 of Manager’s amendment/$2.7 billion/July 1, 2010): New 10% excise tax on indoor tanning salons
More from Americans for Tax Reform
Senate Dems Reminded of Obama's "firm pledge" on Taxes
The Senate healthcare bill contains at least six tax increases on Americans making less than $250,000 per year, putting the bill in direct violation of President Obama’s “firm pledge” not to raise “any form” of taxes on these families.
As the Senate approaches a vote today on an amendment offered by Sen. Mike Crapo (R-Idaho) to send the healthcare bill to the Finance Committee to strip out these tax hikes, Americans for Tax Reform reminds Senators of Obama’s repeated promise:
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]
Oct. 3, 2008: Vice-Presidential candidate Joe Biden said the following:
"No one making less than $250,000 under Barack Obama's plan will see one single penny of their tax raised," Biden said, "whether it's their capital gains tax, their income tax, investment tax, any tax."
[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]
December 15, 2009: Obama’s promise remains for all to see at the Change.gov website:
“no family making less than $250,000 will see their taxes increase.”
More from Americans for Tax Reform
Senate Democrats Face Moment of Truth on Obama Tax Pledge
The Senate will vote Tuesday on an amendment which would send the healthcare bill back to the Finance Committee to strip out its numerous tax hikes on families making less than $250,000 per year. The vote sets up a showdown for Senate Democrats as President Barack Obama has made a “firm pledge” not to raise “any form” of taxes on these families. The amendment was offered by Sen. Mike Crapo (R-Idaho).
“A vote in favor of this amendment would allow Obama to keep his tax pledge. Any Senator who votes against this amendment believes that Obama knowingly lied his way into office,” said Grover Norquist, president of Americans for Tax Reform (ATR).
Obama’s promise remains for all to see at the Change.gov website: “no family making less than $250,000 will see their taxes increase.”
But the Senate healthcare bill is loaded with taxes that would break Obama’s pledge if signed into law:
Health Insurance Mandate Taxes on Working Families
Individual Mandate Tax (Page 324/Sec. 1501/$8 bil): Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax according to the following schedule (capped at 8 percent of income):
|
|
Single
|
Single +1
|
Single +2<
|
|
2014
|
$95
|
$190
|
$285
|
|
2015
|
$350
|
$700
|
$1050
|
|
2016 etc.
|
$750
|
$1500
|
$2250
|
Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS).
Employer Mandate Tax (Page 348/Sec. 1513/$28 bil): If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $750 for all full-time employees. Applies to all employers with 50 or more employees.
If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer).
Small business owners pay their taxes on their owners’ personal tax returns. Since this provision does not exempt business owners making less than $250,000 per year, this employer mandate tax will violate President Obama’s promise in some cases.
Tax Hikes on Healthcare Spending Accounts
Medicine Cabinet Tax (Page 1997/Sec. 9003/$5 bil): No longer allowable to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin)
HSA Withdrawal Tax Hike (Page 1998/Sec. 9004/$1.3 bil): Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
FSA Cap (Page 1999/Sec. 9005/$14.6 bil): Imposes cap on FSAs of $2500 (now unlimited).
Tax Hikes on Medical Spending for Those Making Less Than $250,000
Raise “Haircut” for Medical Itemized Deduction from 7.5% to 10% of AGI (Page 2034/Sec. 9013/$15.2 bil): Waived for 65+ taxpayers in 2013-2016 only
Tax on Cosmetic Medical Procedures (Page 2045/Sec. 9017/$5.8 bil): New 5% excise tax on elective cosmetic surgery to be paid by the surgery patient
**ATR will key vote in favor of cloture on the Crapo Amendment**
More from Americans for Tax Reform
Do Senate Democrats Not Care About Obama's Tax Pledge?
As the Senate begins debate today on its healthcare bill, it is worth asking the following question:
Do Senate Democrats care about Obama’s “firm pledge” not to raise “any form” of taxes on families making less than $250,000 per year?
Obama’s promise remains for all to see at the Change.gov website: “no family making less than $250,000 will see their taxes increase.”
But the Senate healthcare bill is loaded with taxes that would break Obama’s pledge if signed into law:
Health Insurance Mandate Taxes on Working Families
Individual Mandate Tax (Page 324/Sec. 1501/$8 bil): Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax according to the following schedule (capped at 8 percent of income):
|
|
Single
|
Single +1
|
Single +2<
|
|
2014
|
$95
|
$190
|
$285
|
|
2015
|
$350
|
$700
|
$1050
|
|
2016 etc.
|
$750
|
$1500
|
$2250
|
Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS).
Employer Mandate Tax (Page 348/Sec. 1513/$28 bil): If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $750 for all full-time employees. Applies to all employers with 50 or more employees.
If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer).
Small business owners pay their taxes on their owners’ personal tax returns. Since this provision does not exempt business owners making less than $250,000 per year, this employer mandate tax will violate President Obama’s promise in some cases.
Tax Hikes on Healthcare Spending Accounts
Medicine Cabinet Tax (Page 1997/Sec. 9003/$5 bil): No longer allowable to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin)
HSA Withdrawal Tax Hike (Page 1998/Sec. 9004/$1.3 bil): Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
FSA Cap (Page 1999/Sec. 9005/$14.6 bil): Imposes cap on FSAs of $2500 (now unlimited).
Tax Hikes on Medical Spending for Those Making Less Than $250,000
Raise “Haircut” for Medical Itemized Deduction from 7.5% to 10% of AGI (Page 2034/Sec. 9013/$15.2 bil): Waived for 65+ taxpayers in 2013-2016 only
Tax on Cosmetic Medical Procedures (Page 2045/Sec. 9017/$5.8 bil): New 5% excise tax on elective cosmetic surgery to be paid by the surgery patient
Click here for a printable PDF of this document
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