• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Speaker Boehner Plans to Stop Taxmageddon Train Wreck

    House Speaker John Boehner (R–OH) announced yesterday that the House is gearing up to vote prior to the November election on extending all of the tax provisions scheduled to expire at the end of the year. This is welcome news, given the necessity of swiftly steering this tax policy train in the right direction. Otherwise, Congress assuredly would face an even bigger train wreck—scores of laws expiring during a politically charged, whirlwind lame duck session of Congress. The whopper Boehner is referring to? Taxmageddon: a list of expiring tax policies that would result in an unprecedented $494 billion tax increase on Americans in 2013 alone.

    As Heritage’s Curtis Dubay writes, “Almost 34 percent of the tax increase from Taxmageddon comes from the expiration of the 2001 and 2003 Bush tax cuts,” which reduced marginal tax rates for millions of Americans and included an increase in the Child Tax Credit and a reduction in the marriage penalty. Thus, the tax increases of Taxmageddon would adversely affect Americans at all income levels, not just “the rich.” Other provisions expiring include the payroll tax cut, alternative minimum tax patch, and a series of tax extenders. Eighteen tax hikes under Obamacare, totaling $23 billion, will strike in 2013 as well—and that is just a foretaste of those promised.

    Extending all of these expiring tax policies as soon as possible is absolutely crucial to establishing certainty in the minds of businesses, families, and investors. Right now, they are unsure of what their tax liability will be next year, which severely curtails their ability or inclination to hire new workers, plan for the future, and make investments.

    Just as Speaker Boehner has declared the House will act before the November election, the Senate and President Obama should follow suit. Every day they tarry exacerbates the already rampant uncertainty plaguing the sluggish economy. Moving to extend these tax provisions now will assure businesses, families, and investors that they need not fear this massive tax increase on New Year’s Day 2013. Congress is already facing a slew of other high-profile issues it must address this fall, including the debt limit and automatic spending cuts under the Budget Control Act of 2011. It is good, sound policy to take care of Taxmageddon now and strike it from the list of lame duck must-dos.

    Posted in Featured [slideshow_deploy]

    18 Responses to Speaker Boehner Plans to Stop Taxmageddon Train Wreck

    1. Bobbie says:

      The country needs rescue in many areas. Thank you for starting resuscitation.

      This selfishness and unfair indecencies of Obama has to be corrected. Sensible minds with principle but within unconstitutional controlling government forces knows that when the money isn't there it's not imagined that it is and any plans counting on it will need a "change" of plans. Social programs controlled by government paid through obligation by people without a need to benefit from it, only corrupts and condescends personal intelligence by restraint and limit but without reason and if people want them Mr. Obama, they can use their minds to fit it into their personal budgets and pay for them themselves since they are the ones assuming they're benefiting.

      Minds naturally develop the abilities to become self reliant with dignity! It's called responsibility! And freedom! American minds before this drastic government induced social engineering, social programming giveaways, didn't consider looking to government for anything outside the peoples' constitution. No one likes being taken advantage of as Mr. Obama constantly does with his unprecedented unconstitutional, bias favors and blatant discriminations his ill educated mind calls "fair!"

    2. Stirling says:

      Democrats would like nothing better then the train wreck (since tax hikes is what they have wanted the entire time.) Unless Boehner gets a GOP Controlled Senate and Preidency he knows the Democrats will block anything that the House passes.

      The GOP needs a major PR push to expose Reid and the Senate's stonewalling. If Reid didn't stonewall then Obama would be held accountable because he would actually have to sign or veto, but the Democrats sheild Obama from even having to do anything.

      Sadly I fear that the democrats (if beaten like in 2010) will take the lame duck session as an oppotunity to trash the country (like a Protesting Public Union worker in Wisconsin's Capital).

    3. Bob Comer says:

      I live in Ohio and was born in Ohio. I am a partially disabled Vietnam war veteran. Boehner? John-of-Orange? The guy, like our Koch Brothers Governer, Kriminal Kasich, is out to destroy all Unions and destroy the Middle-class. Mitt says, "I don't care about the Poor" and that goes for Boehner, Kasich and the rest of the Republican Bosses. WHY don't you stop with the non-stop lying! Claiming that the U.S. has the highest corporate tax rate in the world conveniently fails to mention that some of the largest U.S. corporations paid ZERO federal taxes (like GE) last year and in past years. AND, they actually got "tax credits!"

      • Conservative Dan says:

        When Mitt said, "I don't care about the poor", he meant that they are already provided with benefits by the government. He was concerned about the "middle class", (whatever that is) who are not dependent on government funds. As for corporate tax rates, it is a fact that the U.S. has the highest rates. But, just like personal tax rates, higher rates do not generate higher tax revenue.

      • Bobbie says:

        I'd expect an American vet from Nam would see perfectly clear the tear down of what's happening to America and the American Peoples' Constitution!

    4. Bob Comer says:

      AND, I guess it would just be too honest for you to quote Warren Buffett when he said his tax rate was lower than his secretary's. AND, perhaps you can tell us in cyberland how the FORBES 400 went from mostly multi-millionaires to, now, ALL BILLIONAIRES? Gee, and those poor Billionaires have to pay so much in taxes (WRONG!) Maybe you could tell us about how many of the Ultra-Rich hide their incomes in places like the Cayman Islands (A LOT!) Gee, that "highest corporate tax rate" really effects them, now doesn't it (actually it doesn't, does it?)

      • Conservative Dan says:

        I guess you missed the news that Warren Buffett came out and said the new "Buffett Rule" would not reduce the deficit by any stretch of the imagination. If you increase tax rates on these very smart billionaires, they will decide that the after-tax returns on further investment are below their investment parameters, and decide not to further expand their business, creating more jobs, etc. And last I checked, investing money in the Cayman Islands was legal. Maybe if tax rates came down, they wouldn't have to go to lower tax-rate countries.

    5. Bob Comer says:

      Finally, The Heritage Foundation is a bad joke in my opinion and is just part of the Plutocratic take-over of America. "Heritage?", what heritage—the one from the Robber Barons? Hopefully, Joe Average American will wake-up to what the Republican-Tea Party-Plutocratic Party is all about before the Middle-class is destroyed, which is, of course, the goal of the Plutocrat Republicans YOU assist. David Brooks was right when he said the Republican Party "is not normal." That's the biggest under-statement of the last 200+ years. Maybe you should ask yourselves: WWJD? What Jesus taught about caring for the Poor is 180 degrees from what YOU are doing! Do you care about the millions upon millions of children in our country without any health insurance? What about disabled veterans? The disabled elderly?

      • Stirling says:

        Jesus didn't say for Government to be the "provider" to the poor.. He was "crucified" by the government, because Government feared that he was going to replace them.. Jesus did good deeds for the people, and died for our sins, have you forgotten that he belived in the people not the government..

        Heritage has always been about the people, their freedoms, and the consitution that limits government intrustion into our personal lives. How we choose to live our lives is personal, and the government should respect that fact rather then force us to live as they want us to do.

        With all that said, I do thank you for your service to our country..

      • Conservative Dan says:

        Give a man a fish and he will eat for a day. Teach a man to fish and he will eat for a lifetime. But the government wants to give you a fish so they look compasionate. It also means that you will come back to them tomorrow for another fish, so now they control you. And health insurance? It was President G. W. Bush who expanded eligibility of the children's health care act. Disabled Vets have the VA, and disabled elderly have Medicare.

        Got anything else, Bob?

    6. Lawrence Burnham says:

      This sounds like more "lip service" from our elected leaders. It would be totaly amazing if they did manage to pass anything that would get past the senate and on the Presidnt's desk. The democrats want these tax increases and what better way to get them than to do nothing more than talk!

    7. Joseph says:

      After punting budget cuts down the road, we're supposed to be excited that "our guys" aren't going to let the failure of a committee stop our spending! Who thought of that plan, anyway? "Our guys".

    8. Blair Franconia, NH says:

      Taxmageddon is coming. Obama doesn't care.

    9. Bob says:

      So far Mr. Boehner you've managed to do pretty much what the Dem Establishment has directed you to do. So what makes you think we should believe you now?

    10. APC says:

      'Tis nothing that hasn't been written before…the ineffectiveness of the Republican House will once again be demonstrated when Harry Reid accepts the bill from the House and promptly adds it to the reams of legislation that have died in the Senate. Are there enough democratic "yeas" to make the bill veto-proof? That would be quite a turn of events.

    11. RennyG says:

      Hey, he or harry reed don't care if these taxes come back because if they do and he is not in office, so be it! If he is re-elected then he has his personal "war chest!!!" So people, be prepared!!! Comming down the track!!!!!!!!
      Back to the "Alinsky Model!!!"

    12. $494 billion dollar tax increase coming, this touches everybody, not just the rich

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.