WASHINGTON – California Rep. Pete Stark (D) today introduced a bill that will increase taxes on millions of home buyers across the nation by subjecting Fannie Mae and Freddie Mac to state and local income taxes.
ATR President Grover Norquist made the following statement:
Millions of Americans are looking to Washington, eager to see their elected representatives take action to improve the sluggish US economy. President Bush has proposed bold tax relief to boost the economy and create jobs. Meanwhile, Representative Stark is suggesting we crush the housing market – the one engine keeping our economy growing today.
New taxes – at any level of government – are not going to stimulate the economy or create jobs. States facing budget crunches don\’t need new tax revenues, they spending discipline. According to USA TODAY, states continue to spend at record levels despite impending, and sometimes massive, budget deficits. New taxes will only ensure continued growth in state government budgets.
One thing tax-and-spenders in Congress always seem to forget is that corporations don\’t pay taxes – people pay taxes. All taxes levied on businesses are expenses that simply become incorporated into the prices of their products or services. Increasing taxes on these two companies, whether at the federal or local level, is a tax on homeownership that ATR would oppose.