November 7th, 2008

Peter Ferrara and Jack Kemp: Obama’s tax hikes already hurting the U.S.

Posted in  Economic Growth  Tax 
Author: Erin Humiston || Location: Lewisville, Texas, USA

IPI director of entitlement Peter Ferrara and Jack Kemp are featured today in Human Events discussing how Barack Obama’s tax hike plans are already adversely affecting the U.S. economy.

Ferrara and Kemp write:

“Are Barack Obama’s proposed tax increases adversely affecting our financial markets? We say yes, unambiguously. The senator has done a masterful job detracting attention from his tax increases with his $500-per-worker tax credit supposedly for 95 percent of Americans.

Obama has set forth more than half a dozen refundable income tax credits targeted to low- and moderate-income workers for child care, education, housing, welfare, retirement, health care and other social purposes.

These tax credits are devised to phase out based on income, which will ultimately increase marginal income tax rates for middle-class workers. In other words, as you earn more, you suffer a penalty in the phase-out of these credits, which has the exact effect of a marginal tax rate increase. That harms rather than improves the economy.”

To read the full article, please visit Human Events online.