As the health care reform bill approaches the Senate floor many moderate democrats find themselves in a troubling situation; in order to support health care reform they must renege on their campaign promises not raise taxes on the middle class. This week the Wall Street Journal called the Baucus Bill a “Tax Bill” that would hit Middle-Class families with a double-digit increase in their marginal tax rate. This is just the sort of Bill that key democratic Senators rail against during their campaigns. It is astounding what this Congress is willing to do to struggling middle-class families. The bill would impose nearly $400 billion in new taxes and fees. The Wall Street Journal says, “Nearly 90% of that burden will be shouldered by those making $200,000 or less.” This should worry many moderate Senators who made clear statements that they were against new taxes on the middle-class and small businesses. Here are a few examples:
• Take Senator Blanche Lincoln who is up for reelection in Arkansas. Her official website states that she is in favor of “a tax structure that is fair and equitable for all Americans and one that helps our working families.” However, Lincoln – who sits on the Senate Finance Committee – voted for a “Tax Bill” that would be largely financed by working families!
• Senator Bill Nelson told the Politico: “Right now. I’m concerned about the amount that’s being offered in [Obama’s] budget.” On the issues of tax hikes, Nelson said that he had “major concerns” about raising taxes in the midst of an economic downturn. At one point he said a health bill should pass with 65 Senate votes to signal a true bipartisan effort, an almost-impossible task. If Senator Nelson is being truthful he has no choice but to vote no on the health reform bill.
• Going further than Senator’s Lincoln and Nelson is Senator Mark Begich. In his 2008 campaign he vowed to not only oppose any new taxes on the middle-class but to “extend existing middle-class tax cuts.” His campaign website further stated, “Mark Begich supports extending the tax cuts that work for Alaska families, such as marriage penalty relief and the increased child tax credit.” Senator Begich ran as a small businessman, husband, and father, who understood the pressure Alaska families face to make ends meet and get ahead. “Rising energy and food prices, health care and education costs are stretching Alaskans’ pocketbooks.” It is clear that Begich support of this health care bill would be a complete repudiation on his entire campaign platform and would further stretch middle-class Alaskans’ pocketbooks.
• Louisiana Democratic Senator Mary Landrieu is a centrist Democrat from a conservative state -- Louisiana went heavily for Mr. McCain -- Ms. Landrieu faces considerable resistance to an overhaul, a point that was underscored by a raucous town-hall meeting in her state in August. She has been dubious about a public option and has stressed the need for any bill to protect small business and preserve Medicare funding. The Senator’s website states: “Senator Landrieu realizes that more than 65% of the new jobs in Louisiana in the past decade were created by small businesses; she lessened burdensome federal regulations and created tax relief for small businesses.” A vote for this Health Care reform would cripple Small Business and add a heavy tax burden on the middle-class.
• Senator Kay Hagan of North Carolina has been forthright with her concern about the deficit during her recent bid of Elizabeth Dole’s Senate seat Hagan told the Associated Press that, “the budget proposal pushed by President Barack Obama would burden the nation with an annual deficit of more than $1 trillion, a shortfall she deemed ‘completely unsustainable and unacceptable.’” A vote in favor of this health care bill from Hagan would only add to that unsustainable and unacceptable deficit she spoke of during her campaign. Senators like Mrs. Hagan need to know that they can not merely pay lip service to the deficit and then flip-flop in order to pass a liberal health bill that will only make the deficit grow.
• On Senator Kent Conrad’s official US Senate Web site, he claims he “supports tax relief for middle-class workers to make the tax code fairer and to strengthen the economy. His budgets in 2007 and 2008 provided for the extension of important middle-class tax relief, such as the continuation of marriage penalty relief, the $1,000 child tax credit, and the 10-percent bracket.” Conrad also claims that he “is particularly concerned about the soaring federal debt that is forecast for the nation's long-term budget outlook. He believes that reducing this debt burden is essential to the future strength of the nation's economy. Over time, large deficits and debt will raise interest rates, crowd out private sector investment, and slow long-term economic growth.” What does Senator Conrad – who also sits on the Finance Committee – do next? He votes for the Baucus Bill that will continue the growth of deficit and raise taxes on the middle-class.
• The two Virginia Senators have been equally outspoken regarding taxes on the middle class and the ever expanding deficit. During a September 2008 debate with Jim Gilmore, Senator Mark Warner stated that he only supports rolling back the “top-tier” tax breaks by the Bush Administration. Warner went on to state that he is against tax increases on Small businesses and the middle class. Yet Warner has been as supportive as anyone of the “Baucus Bill” which places 90% of the cost burden squarely on the middle-class. Senator Jim Webb – in no uncertain terms during campaign – said, “You know, what I said during the campaign was that I would — and this was mischaracterized in ads against me. I would not raise taxes on anyone who is making a living by salaries, you know, on working people.” To his credit, Senator Webb – along with other Senate democrats – signed a letter to Senate Majority Leader Harry Reid stating that they want to “delay final votes on the measure until the CBO estimates the full cost and the public has 72 hours to review it.”
Middle-class families have it tough enough. There is little reason to believe that the pain of the current recession, housing downturn, and financial crisis will quickly fade away—especially with the administration planning to triple the national debt over the next decade.
The promise of real reform remains. But the reality of the Democrats' current effort is starkly less benign. It will create a dangerous new entitlement that will be paid for by the middle class, the same middle-class these democrats said they would not tax.
(Cites for quotations available)
A's M.
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