I read from an email from the Republican Communications Director for the Senate Budget Committee. A listener to my show this morning called Saxby’s Washington Office and they said I was lying.
Well, read for yourself what the Republicans on the Senate Budget Committee say about Saxby Chambliss‘s proposal:
It seems the G6 plan does not balance elimination of deductions with reductions of rates in a way that would prevent a net increase in taxes and that, in fact, a substantially higher net tax burden would likely be imposed.
As a result of such an imbalance, Americans would lose more of their money to the government through losing deductions than they will gain from lower rates. This is common sense to any American. At the end of the year, when an individual is filling out his or her tax return it will be of little consolation to that taxpayer if he or she is paying taxes at a lower statutory tax rate, if their overall amount of taxes goes up.
Specific tax hikes that Americans could face under this approach:
Tax increases that hit American families:
- Eliminating 2/3 of the home mortgage interest deduction.
- Eliminating 2/3 of the deduction for charitable contributions.
- Phasing in a $1,250 average tax increase on health insurance.
Tax increases that make businesses less competitive:
- Tax rates on capital gains and dividends would nearly double from 15 to 28 percent.
- Small businesses that create two-thirds of our new jobs would lose the ability to immediately write off their purchases of capital equipment, hurting their ability to expand.
- Companies that invest in research and development would no longer receive a tax credit.
- Tax incentives that promote energy production would be eliminated.
- Eliminates the employer wage credit for activated military reservists.
That’s not me coming up with this stuff. That’s Saxby Chambliss’s Senate Republican colleagues.