Study Shows "New Direction" Could Lead To Higher Taxes

By: Martin Lukac
Submitted: 2007-01-17 16:17:40
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

The Democratic Party's "New Direction for America" could mean more economic solidity, but might also result in higher taxation, according to a recent study.

According to a line-by-line analysis of the program by the National Taxpayers Union Foundation, the plan includes billions of dollars of new spending.

For example, the largest spending program is the "G.I. Bill of Rights for the 21st Century." This program would provide increased pay, health care and benefits for veterans and their families. The cost of the program would increase outlays by $99 billion over the next five years. The top income tax rate would be increased to offset the increase.

In addition to the noted costs, NTUF Senior Policy Analyst Demian Brady noted that there are several "cost unknown" items that would significantly increase the net total spending that the Democratic agenda is seeking. One of these items includes a proposal to screen 100% of all inbound US Cargo.

"Americans should take note that proposals containing many political promises are likely to contain many tax dollars as well," Brady said.

"Given that the average House Democrat's agenda in the last Congress would have boosted spending by $521 billion, the 'New Direction for America' may appear to be modest," he continued. "Many taxpayers, however, are probably hoping that if Democrats take control of Congress, they will somehow find the fiscal responsibility on Capital Hill that has been lost amongst slabs of pork-barrel spending and IOU's from unfunded program liabilities."

Other major spending plans include a proposal for a savings account system in which the federal government would match dollar-for-dollar the first $1,000 a citizen contributes to a personal retirement plan. This is estimated to cost taxpayers $7.5 billion each year.

The largest item in the spending program is healthcare spending at $28.8 billion. It includes reforms to the Medicare prescription drug program and accounts for 36% of the increases. Other spending includes education increases for teacher recruitment and lower student interest rates.

Martin Lukac represents http://www.RateEmpire.com, an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com and San Diego loan portal http://www.LendingSanDiego.com

Article source: Expert Articles

Most Recent Articles in Taxes category

  • Use the Appraisal District's Information to Reduce Your Property Taxes - By: Patrick C O Connor
    Homeowners are amazed to learn they can obtain a copy of the appraisal district's evidence at a nominal cost. This is referred to as a House Bill 201 package, and is the only information many homeowners use to successfully reduce their property taxes.
  • Tax Return Outsourcing - Cost and Time Effective Services - By: Michelle Barkley
    Tax return outsourcing has simplified the cumbersome task of maintaining tax returns files and data in an efficient manner.
  • Optimise Savings with an Offshore Account - By: Isla Campbell
    Offshore accounts, based in the Channel Islands, the Isle of Man and Ireland, offer many benefits to those wishing to set up a savings account. But what are the advantages of cash conservation offshore.
  • Texas Business Personal Property Rendition and Taxation - By: Patrick C O Connor
    The Texas Property Tax Code for many years had required owners of business personal property (BPP) to annually render those assets used in a business. Rendering is summarizing to the central appraisal district the ownership and value of the assets. Historically, however, over half of all owners of business personal property have not rendered.
  • How to sustain current economic slump? - By: Mark Waltzer
    Small businesses need professional accountants but their services are too expensive so it's better to hire an outsourcing vendor providing cost-effective accounting services and allow them to take your business to next level.
  • Texas Property Tax Appeals - By: Patrick C O Connor
    Texas Property Tax Appeals Steps to Protesting and Reducing Your Property Value Annually
  • Taxes - By: Patrick C O Connor
    Taxes are a levy imposed upon people or legal entities by a governmental entity. There are many forms of taxes including income taxes, property taxes, capital gains taxes, consumption taxes, excise taxes, retirement taxes, sales taxes, tariffs, toll taxes and transfer taxes. This article focuses on reducing income taxes for real estate owners.
  • Gift Tax Valuations - By: Patrick C O Connor
    Gift tax valuations are prepared for many reasons. Gift tax includes market value of gifts to charity, market value of conservation easements and gifts in excess of annual limit. Well-reasoned planning of gifts can minimize gift taxes, income taxes, and estate taxes.
  • Please keep your hands out of my pockets Uncle Sam!: Business tax savings you should know about. - By: Amar Brown
    Many people are unaware that a business including a home based business can mean thousands of dollars in tax advantages per year. Thousands that you can put back into you pocket. Here are a few tips on keeping Uncle Sam Out of your pockets and keeping more of your hard earned money in.
  • Cost segregation - correctly depreciation real estate 10 - By: Patrick O'Connor
    Depreciation is an important non-cash tax deduction. By increasing tax deductions, commercial property owners affect federal income tax reduction. The increase in tax write-offs generates such a large tax cut that some wonder if it is a tax shelter or tax evasion scheme. It is not. Cost segregation is an IRS-guided process used to increase tax deductions during the tax preparation process. The IRS has provided a detailed explanation of the items that qualify for short-life depreciation and acceptable methodologies for performing a cost segregation study. Cost segregation studies performed by appraisers in compliance with the IRS's Audit Techniques Guide are unlikely to be challenged in an audit. Commercial real estate owners seeking tax advice and tax relief can benefit from reviewing the tax relief available from cost segregation.