Hope and Fail

Raising taxes on the poor

Fifteen days into his presidency, Barack Obama has broken his promise not to raise taxes on those making less than $250,000 a year.

President Obama, by signing the $33 billion expansion of health programs for poor children — known as SCHIP — is reneging on his promise to not raise taxes on those making less than $250,000 a year.

During the second debate with John McCain on Oct. 7, 2008, the president said this:

I want to provide a tax cut for 95% of Americans. If you make less than a quarter of a million dollars a year, you will not see a single dime of your taxes go up. If you make $200,000 a year or less, your taxes will go down.

The SCHIP expansion raises the federal tax on cigarettes from 31 cents per-pack to $1 per-pack — which will hit the working poor more than anyone else in this country.

From The Wall Street Journal:

Congress is moving so fast and furious that it’s impossible to keep up. But we didn’t want to miss telling you about the tax increase on the poor and middle class that Congress is about to pass without a whit of media attention.

We mean the tax increase on smokers that is part of the new children’s health-care subsidy bill. To finance this $73 billion entitlement expansion over 10 years, the bill imposes an additional federal tax of 61 cents per cigarette pack, from 39 cents today. According to the Bureau of Economic Analysis, 96% of America’s 25 million smokers make less than $150,000 a year. The Tax Foundation estimates that 99% of the smokers who will pay the new tax make less than $250,000, which is the income below which President Obama promised would see no tax increase.

So, 15 days into his presidency, Obama has already broken his promise not to raise taxes on the poor and middle class.

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