March 05, 2008

Crapo Warns Of Large Tax Increases

Says new budget calls for billions in higher taxes, spending and debt

Washington, DC - Idaho Senator Mike Crapo, a member of the Senate Budget Committee, warned new spending proposals being considered in the Senate could raise taxes on Americans by $1.3 trillion over the next five years. Crapo took to the Senate floor today to decry the spending proposals as "an embarrassment" and "not responsible" to future generations.

Leadership in the Senate Budget Committee is expected to finalize work on a budget blueprint for spending in the coming fiscal year that could, for the first time, top $3 trillion in federal spending. Crapo says the blueprint fails to address critical issues regarding taxes and federal spending. "This budget is a failure regarding spending and it is a failure on tax policies, in addition to growing the federal debt," he noted.

The $350 billion deficit contemplated by the new spending plan does not even include the $150 billion in debt added by the recent economic stimulus rebate plan approved by Congress, Crapo said, noting he voted against the plan. He said the proposal does nothing to address exploding growth in entitlement programs, which escalate on "auto-pilot" without a vote in Congress. The new proposal includes an increase of $205 billion over five years in non-defense discretionary spending.

"This budget is a return to the classic tax-and-spend policies that we have avoided with the tax relief Congress approved in 2001 and 2003," Crapo noted. That tax relief is scheduled to sunset in 2010. Crapo prefers maintaining the relief because it has improved family budgets and led to new investment and economic growth.

Crapo said all Americans will suffer if the tax relief is not extended. "Whether you are married, single, have children or no children, your taxes will increase under this proposal," he said. Among the tax relief that would also end under the present plan are the child tax credit, marriage penalty provisions and relief for small business and estate taxes. All categories would increase if the present proposal is allowed to go forward.