And So I Go: Yesterday, Today and Tomorrow

The Budget Deal’s Sneaky Tax Increases

Posted on: December 13, 2013

The best that can be said for the  budget deal Congress is now considering is that it appears to be a bit of cooperation between the Republicans and the Democrats, the House and the Senate for the first time in years.   Other than that it is no “deal” for the American people.   Read the following report from Heritage and decide for yourself.   For myself I don’t like it but rather have this than nothing at all because nothing at all but “continuing resolution” puts Obama in charge of spending what he wants with no input or control  from the Congress or the people.  BB

The Budget Deal’s Sneaky Tax Increases

The Heritage Foundation

The Budget Deal’s Sneaky Tax Increases

12/13/2013

The congressional budget deal includes some “user fees.”

For the Washington establishment, that’s apparently the politically correct way of telling Americans they’ll be paying more to the federal government. For the rest of us, it’s a tax increase.

The Ryan-Murray budget deal, which passed the House on a 332-94 vote, includes a number of “fee” increases. One would make flying more expensive. Travelers are currently charged $2.50 per flight under the Transportation Security Administration’s airline security “fee.” Under the budget deal, that would increase to $5.60 per flight or $11.20 for a round-trip ticket.

Supporters of the deal are claiming this isn’t a tax increase—but take a look at your airline receipt. The airline security charge is just one of the taxes you’ll see. According to Delta Airlines, there’s also the Domestic Transportation Tax (7.5 percent), Travel Facilities Tax ($8.40), and U.S. International Transportation Tax ($17.20). These are all considered taxes.

When asked if the “user fees” were a code name for a tax increase, Representative Tom McClintock (R-CA) explained it this way: “I happen to believe once government spends a dollar they have decided to tax that dollar. The only question is when and by what means.”

McClintock quote on tax and spend

Facebook - Share on Facebook

And in the case of this airline security fee increase, the money isn’t even going back to the TSA to fund or improve security. Instead, as Heritage’s Cassandra Lucaccioni explained, “it will be deposited annually into a general fund of the Treasury.”

Not all government user fees are problematic. If they’re used to provide services to distinct groups of individuals or specific businesses or industries, they might make sense. That’s not what’s happening here.

“If a higher fee does not directly cover the cost of a government service and instead goes to pay for more spending, then it is akin to a tax increase,” said Curtis Dubay, Heritage’s senior tax policy analyst. “The budget deal uses the higher fees to cover the cost of more spending; hence it is essentially a tax hike.”

Taxpayers are tired of Washington’s gimmicks and games—and conservatives on Capitol Hill shouldn’t fall for this sneaky wordplay. The $63 billion spending hike in the Ryan-Murray budget has to come from somewhere.

Only in Washington could something like this fly. The American people shouldn’t buy it—or, in this case, pay for it.

Read the Morning Bell and more en español every day at Heritage Libertad.

Quick Hits:

 

1 Response to "The Budget Deal’s Sneaky Tax Increases"

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

See topic cloud at bottom of page for specific topics.

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 97 other followers

BB’s file cabinet

%d bloggers like this: