My friend was exactly right. We are talking about the largest tax increase in our history, $292 billion. My friend from California was exactly right. When you talk about facts and figures, it's one thing. But when you try to bring it home…
My friend was exactly right. We are talking about the largest tax increase in our history, $292 billion. My friend from California was exactly right. When you talk about facts and figures, it's one thing. But when you try to bring it home and let people understand exactly what it means to them personally, it's another thing.
Let me just give you some examples. Nationwide, if the Democrat budget were to happen to pass, we are talking about some nationwide impacts. Here we go, a family of four earning $40,000 will face a tax increase of $2,052. That is a family of four nationwide and 113 million taxpayers will see their taxes go up by an average $2,200. Actually, $2,216, but what the heck, it's government work, let's round it off a little bit. Over 5 million individuals and families who would have seen their income tax liabilities completely eliminated will now have to pay taxes.
So not only people that haven't paid taxes in the past now, another 5 million individuals are going to have to hit the tax rolls; 45 million families with children will face an average tax increase of $2,864; 15 million elderly individuals, elderly. Now, most of these are on fixed incomes, will pay an average tax increase of $2,934. And 27 million small business owners will pay an average tax increase, listen to this one now, listen to this one, $4,712. Let me read that one again, 27 million small business owners will pay an average tax increase of $4,712. Unbelievable.
Let's bring it home. I am from South Carolina, born and raised there. Let's put it in South Carolina terms. In South Carolina the impact of repealing the Republican tax relief would be felt. Here is how. It's higher than I thought: 1,300,000 taxpayers statewide who are benefiting from the new lower 10 percent bracket would see their taxes go up.
In South Carolina alone, 1.3 million people added to the 10 percent bracket; 447,000 married couples in the State of South Carolina would see higher taxes because of the increase in the marriage penalty. We are penalizing people to be married; 427,000 families with children would pay more taxes because the child tax credit would expire; and 212,000 investors, including seniors, would pay more because of an increase on tax rates on the capital gains and dividends.
The gentleman from California was there last Wednesday into Thursday morning when we passed it, we voted against it, but the Democrats passed their budget. It's full of empty promises, with the exception of two, more spending and higher taxes. That is a done deal; it's going to happen. The Democrat budget says it's the largest tax increase in American history. The Republican budget will say no tax increases.
The Democrat budget will say, immense new spending. The Republican will say, we will hold the line and we were going to increase accountability.
Entitlements, on the Democratic side, it is a complete failure, $77 million worth of entitlement savings, $77 million when we are talking about literally hundreds of billions of dollars in entitlement spending that they are going to do. The Republican budget says reforms, improvements in reforms, trying to make entitlement more sustainable and adding to the longevity of it. So it is plain and simple.
Again, the figure that the gentleman from California, Madam Speaker, quoted a little bit earlier, when you bring it home in South Carolina terms where everybody can understand it, where it hits their pocketbook, we are talking per year average for 5 years if the Democratic budget passes, $2,482.66 that my people in South Carolina will have to pay more.
And I ask the gentleman from California, I don't think that is a pretty good deal, do you?
I thank the gentleman for yielding; and, no, I don't. Again, broken promises.
One of the ways that the Democrats want to fund all this new spending is reserve funds. And you talk about a
shell game. We are talking about setting up reserve funds so we can spend more money, but there is actually no money in the reserve funds because we are going to put the money in there later on.
Exactly. And as the gentleman from California knows, we had an empty jar, a big empty jar in our committee to illustrate that view.
One of the ways that the Democrats in their budget spend more money is they set up this empty reserve fund to be funded later, that the committees and the agencies and organizations can draw money out to spend more money, but yet there is no money in the reserve fund to spend. So you talk about a shell game. It is a shell game at its finest.
One of the things that I was proud of several weeks ago, I guess maybe it was 2 weeks ago, I was proud to be part of an RSC, the Republican Study Committee, a press conference that we had to talk about a Taxpayer Bill of Rights.
And, Madam Speaker, what we are talking about here is giving the taxpayers across the country more accountability for their government. Four simple things, things that we have talked about and things that we would like to see come to fruition. Let me tell you what they are.
Taxpayers should have the right to a Federal government that does not grow beyond their ability to pay for it. I don't think we see that in this budget, Madam Speaker.
Taxpayers should have the right to receive back every dollar they entrust to the government for their retirement. It is incredible what we have done and what we are continuing to do, Madam Speaker, in this Democratic budget.
Number three, taxpayers have a right to expect the government to balance the budget without having their taxes raised. As the gentleman from California well knows, the Republican budget that we will present later this week will do that in 5 years. We will balance the budget, save the Social Security fund, and do it all without raising taxes. The Democratic budget does not. It does not. Now they may say one thing, but the figures show something else.
And, last, taxpayers have a right to a simple and fair Tax Code that they understand. Boy, that is a tough one there. But it is a game of trying to be responsible to the taxpayers, as my friend from California knows. It is a game of making sure that our people keep their money. They know how to spend it more than we do in Washington, D.C., and I trust my people more.
Unfortunately, Madam Speaker, as my friend from California knows, this budget trusts the government more than it trusts the American taxpayer.
With that, I yield back.
I thank the gentleman for yielding.
I think it is very simple. Number one, we will balance the budget without raising taxes; and, number two, we will reform entitlements. Because, as you well know, over the next 5 years, Madam Speaker, entitlement spending will grow 19 percent. Now that is without me, without my friend from California, without anybody in this House lifting a single finger. Entitlement spending will grow 19 percent.
So the budget we bring to the floor this week will be very simple. We will slow the growth, not cut. We will slow the growth, because entitlement spending will still continue to grow. We will slow the growth of entitlement spending, and we will balance the budget without raising taxes.
And I yield back.