Friday, April 30, 2010
By Congressman John Carter(Tx-31)
April 15 is a day which already strikes dread into the hearts of most Americans who pay taxes. But following 16 months of one-party control of the House, Senate, and White House, taxpayers are now facing a federal tax tsunami as the full $670 billion in Obama Administration tax increases come into effect.
The House Ways and Means Committee today released the list of $670.341 billion in tax increases that have thus far been signed into law by President Obama, equating to a staggering $2,100 per year in additional federal taxes for every man, woman, and child in America. Those new taxes include at minimum 14 violations of President Obama’s campaign pledge not to increase taxes on middle-income Americans, which he defined as families making less than $250,000.
Here are just some of the new taxes that have been loaded on the backs of taxpayers in only a little over a year of one-party control of Washington:
-Tax on individuals who do not purchase government-approved health insurance
-Tax on employers who fail to buy government approved health insurance
-40% tax on high cost health plans, but with an exemption for union members
-.9% increase in Medicare tax on wages and self-employment income
-A new 3.8% surtax on certain investment income
-Increase from 7.5% to 10% of income the threshold for deducting medical expenses
-A new $2,500 annual cap on Flexible Spending Account contributions
-Excise taxes on brand name pharmaceuticals
-Excise taxes on medical devices including wheelchairs
-A 10% federal tax on indoor UV tanning services
-New tax on insured and self‐insured health plans
-Double the penalty for non‐qualified HSA distributions
-Tobacco tax increase
But that’s not all. Unless Congress takes action, here is a sample of additional tax increases that are scheduled to kick in automatically in the immediate future:
-The Alternative Minimum Tax (AMT) will decrease from $46,700 to $33,750 for single filers and from $70,950 to $45,000 for married couples filing jointly.
-Taxpayers will not be allowed to deduct their state and local general sales taxes from their federal income tax.
-businesses will not be able to claim a tax credit for research, experimentation, and development activities.
-Taxpayers will not be able to claim a deduction for qualified tuition and expenses.
-School teachers will no longer be able to write off books, supplies and other equipment
-Five year depreciation of farm machinery and equipment will expire.
-Donations of books to public schools (K-12) will no longer be eligible for an enhanced charitable deduction.
-The 35% income tax bracket will increase to 39.6%
-33% bracket will increase to 36%
-28% bracket will increase to 31%
-25% bracket will increase to 28%
-10% and 15% brackets will condense to 15%
-The child tax credit will decrease from $1,000 to $500.
-The marriage penalty tax will be restored, charging married couples a higher tax rate than individuals on the same total income
-The “death” tax returns with a 55% maximum rate and a $1 million exemption, after years of decreasing “death” tax rates,
-The dependent care tax credit will decrease from $3,000 to $2,400.
-The energy efficient home appliance tax credit will expire
-The tax credit to hire unemployed veterans and disconnected youth will expire.
-The Work Opportunity Tax Credit, which allows employers to credit up to 40% of the first-year wages of a new employee, will expire.
-The $400 “Making Work Pay” Tax Credit will expire.
-The adoption tax credit will decrease from $13,170 to $5,000.
-The credit for electric drive motorcycles, three-wheeled vehicles, and low-speed vehicles will expire.
-The conversion credit for plug-in electric vehicles will expire.
-The tax credit for cellulosic biofuel producers will expire.
The last thing taxpayers and our national economy need in the middle of the worst recession in a generation are back-breaking tax increases that siphon trillions more dollars out of the free market economy.
We need jobs to get out of this recession – not new taxes. And those jobs need to be good-paying, permanent, private-sector jobs, not the temporary census-counting jobs the President attempted to crow over this month.
Every dollar going to government deficit spending is a dollar taken from private-sector jobs, and one that we cannot afford to lose if we hope to restore a vibrant economy and future for our children and grandchildren. That is the primary reason we have seen unemployment soar to record highs over 2009-2010.
Let’s hope that by next April 15, voters will have made the changes in Congress to reverse these crippling new taxes, and start repairing the damage to our economy from reckless fiscal policies.
Wednesday, April 28, 2010
Gov. Bob McDonnell is not stepping off the gas when it comes to job creation in the commonwealth. Just yesterday McDonnell announced that Northrop Grumman will be moving their operations from Los Angeles to Northern Virginia, and today the Governor announced that Wineries Unlimited's trade show will be relocating from Pennsylvania to Richmond in 2011.
"We are thrilled that Wineries Unlimited has decided to move to Virginia. Virginia wines have seen their standing in the domestic and global marketplaces grow in recent years and having Wineries Unlimited in Virginia will help us as we continue our efforts to promote Virginia wines both here and abroad. This is also a chance for us to showcase our first class wineries to people from across the nation.
- Gov. McDonnell
The Wineries Unlimited trade show is the second-largest vineyard and winery conference and trade show in North America. The trade show’s move from Pennsylvania is projected to generate $1.5 Million in revenue for Virginia, as well as over 2,000 visitors to the state capital.
Another impressive and much needed move by Gov. McDonnell! What will he do tomorrow?
Tuesday, April 27, 2010
"To gain the corporate headquarters of one of the largest global security contractors in the world is a testament to the strong business climate that we are focused on continually improving."
- Gov. McDonnell
Victory can be credited to the extensive effort on behalf of the McDonnell administration and the General Assembly. With countless meetings and talks with the company Gov. McDonnell and the General Assembly provided the attractive incentives needed to lure Northrop Grumman from LA to the Commonwealth. The McDonnell administration expressed their excitement with gaining one of the largest global security contractors in the world:
"This Administration will keep taxes and regulations and litigation at a minimum to attract job-creators from around the world to our state to ensure more new opportunities for all Virginians. I welcome Northrop Grumman to Virginia. I know the company will be a great corporate citizen and partner, and I thank Chairman Wes Bush and his team for their investment in the future of Virginia."
The new location of the headquarters could create up to 300 new jobs in the region as well as stimulate more economic growth for Virginia.
A great move by Gov. McDonnell and the right step towards Virginia’s economic future.
Wednesday, April 21, 2010
Press Release from Del. Tim Hugo
Richmond, VA (April 21, 2010): Today, the Virginia House Republican Caucus voted unanimously to elect Delegate Timothy D. Hugo (R- Fairfax) to serve as the Republican Caucus Chairman. The position, previously held by former Delegate Sam Nixon, was left vacant when Nixon resigned to become Chief Information Officer of the Virginia Information Technologies Agency (VITA).
"As a recognized leader within the Caucus, Tim understands the duties required of this position and has the right temperament and experiences to be very successful in his important new capacity," stated Speaker William J. Howell. "During these tough economic times and need to reform state government to make it smarter and simpler, it is imperative that we have an energetic, dedicated and knowledgeable member like Tim joining our leadership team. Like so many, I am looking forward to working with him and our Majority Caucus will be better off because of his leadership."
The position of Caucus Chairman is one of four leadership roles within the House Republican Caucus. Others serving in leadership positions include Speaker William Howell, Majority Leader Morgan Griffith, and Majority Whip Kirk Cox.
"I humbly accept the responsibility that has been entrusted to me today," Delegate Hugo said in accepting the position. "Since being elected, I have watched the Republican Caucus expand on its majority under our current leadership. I am thrilled to broaden my responsibilities within the caucus and relish the opportunity to serve the citizens of Virginia."
Delegate Hugo was first elected to the House of Delegates in a special election in December 2002, filling a vacancy left by former Delegate Jay O'Brien. Delegate Hugo garnered over 67% of the vote in his first election. Now serving in his eighth year as a member, Delegate Hugo is a member of the Commerce and Labor, Finance, Transportation, and Privileges and Elections Committees. He represents parts of Fairfax, Centreville, Clifton, and Fairfax Station.
Monday, April 19, 2010
Following the devastating earthquake in Haiti, the United States rushed in to help with money, medicine, and manpower. To date, we've already given over $179 million in humanitarian aid... but Barack Obama has just ordered all U.S. installations to take down their American flags, lest we be seen as an "occupying army" rather than "international partners."
The absence of the American flag bothers Navy veteran Arthur Herriford, national president of the Pearl Harbor Survivors Association.
"It's very improper," Herriford said. "Our military people always engage and function under the American colors — always have and always will."
No other country giving aid in Haiti has lowered its flag, why should we?
Story From USA Today
Thursday, April 15, 2010
Wednesday, April 14, 2010
“The second way government assistance programs contribute to long-term unemployment is by providing an incentive, and the means, not to work. Each unemployed person has a 'reservation wage'—the minimum wage he or she insists on getting before accepting a job. Unemployment insurance and other social assistance programs increase [the] reservation wage, causing an unemployed person to remain unemployed longer."
-Lawrence H. Summers, the current White House economic Adviser ( "Unemployment" in the Concise Encyclopedia of Economics, first published in 1999. )
“Mr. Summers should give a tutorial to the U.S. Senate, which is debating whether to extend unemployment benefits for the fourth time since the recession began in early 2008. The bill pushed by Democrats would extend jobless payments to 99 weeks, or nearly two full years, at a cost of between $7 billion and $10 billion. As Mr. Summers suggests, rarely has there been a clearer case of false policy compassion”
Democrats still seem to think that extending jobless benefits will yield political capital. Adding incentives not to work will only increase the burden already hoisted on the shoulders of taxpayers. With taxes due tomorrow now is not the time to waste more of the taxpayers’ hard earned money.
Full Story at The Wall Street Journal
Monday, April 12, 2010
Nearly HALF (about 47%) of U.S. households escape FEDERAL income tax.
• That’s because either their incomes are too low or they qualify for enough credits, deductions and exemptions to eliminate their federal tax liability.
Less than 1% of FEDERAL tax returns (the wealthiest) account for about 35% of the income tax revenue
• Top 10% of STATE taxpayers pay more than 50% of state income taxes.
• About 14% of STATE tax returns show adjusted gross income over $100,000, and they account for about 60% of Virginia STATE income tax revenue.
Virginia's STATE income tax filing threshold is gradually increasing, and will be about $12,000 in 2012 (about $24,000 for married filing jointly).
• Increasing thresholds mean many more Virginians on the low-income end pay NO Virginia income tax.
By many measures, Virginia is a relatively low tax, business friendly state, which helps to translate into more jobs and larger tax bases.
Virginia also is one of the best managed states, which is a decent indicator that public services are provided efficiently at relatively high levels. A recent ranking by the Council on State Taxation on the degree to which states provide a fair, efficient and customer-focused administration of taxes, ranks Virginia tied for second place with four other states
Wednesday, April 7, 2010
April is usually not a month to be grateful for taxes, it is a month to realize that your hard earned income is being sliced and diced. Luckily for Virginians, the Republican led House of Delegates were able to craft a budget without creating any new taxes. Although taxes are the lifeline of government, we should not resort to thanking them. Thanking taxes will not stimulate the economy or create jobs.
With our current economic situation thanking taxes is simply not an option. With a massive budget shortfall the House of Delegates had to implement innovative solutions to ensure that the tax payers’ wallets were not emptied. It is a bit odd that Delegate Englin’s wife is a tad too chipper about tax increases and disregards the struggling tax payer completely.
Another note, Tax Freedom Day will arrive on April 9 this year. According to taxfoundation.org “Americans will work well over three months of the year—from January 1 to April 9—before they have earned enough money to pay this year's tax obligations at the federal, state and local levels.”
So thank you taxes.
Tuesday, April 6, 2010
Unfortunately, Lowell and the blue (depressed???) Democrats forgot that a majority of the House Democrats (led by Democratic so-called Leader Ward Armstrong and Jennifer McClellan) voted for Delegate Bob Marshall's HB10 which asserts Virginia's rights. The final vote was 80-17 (http://leg1.state.va.us/cgi-bin/legp504.exe?101+vot+HV1520+HB0010 )
In fact, there were even some Dem votes from Fairfax and even one from Arlington.....
......we always new that Delegate Bob Marshall and Delegate Adam Ebbin had a lot in common!
21 DEM YEAS (of 39 House Dems) for Delegate Bob Marshall's HB10-- Armstrong, BaCote, Barlow, Dance, Ebbin, Howell, A.T., James, Joannou, Johnson, Keam, Lewis, McClellan, McQuinn, Miller, P.J., Morrissey, Phillips, Pollard, Tyler, Ward, Ware, O., Watts,