Washington, D.C. -  Today, U.S. Rep. Phil English (R-Pa.), Ranking Member of the House Ways and Means Select Revenue Measures Subcommittee, denounced the House Democratic Leadership’s fiscal year 2009 federal budget, H.Con.Res. 312 for setting in motion the largest tax increase in American history –at least $683 billion over five years.

“Today, the Democratic Majority advanced a job-killing tax-and-spend budget that ultimately will wipeout many of the benefits from the economic stimulus plan that we just passed,” English said.  “At a time when working families are struggling and facing enormous insecurity, the tax increases embedded in this budget are a sucker-punch to the American economy.  Even more, by increasing taxes on the edge of recession, we run the risk of putting manufacturers and unions at a competitive disadvantage.”

H.Con.Res. 312, the fiscal year 2009 budget, allows the tax provisions that were included in the Economic Growth and tax Relief Reconciliation Act of 2001 (EGTRRA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) to expire and, as a result, would increase taxes by $683 billion over a period of five years. 

According to the Heritage Foundation, the House’s FY 2009 federal budget could cause the American economy to suffer a loss of $1 billion by 2012 and reduce job creation by more than 1 million. In addition, every American taxpayer can expect to pay, on average, more than $2,000 in taxes in 2012, while also losing an average of $1,767 in personal income.  In Pennsylvania’s 3rd Congressional District, the local economy would get hit with a $181 million loss by 2012 and nearly 2,000 job losses.  Individuals in the 3rd district can expect to pay an additional $1,531 in taxes while seeing an income loss of roughly $2,000.

During debate, English cited concerns with the proposed tax hikes target working families, families with children, and small businesses among others.  H.Con.Res.312 reduces the Child Tax Credit by half, increases the lowest tax bracket from 10 to 15 percent, reconstitutes the marriage penalty and eliminates incentives for higher education like increased student loan interest deduction.

“By slashing the child tax credit in half, reconstituting the marriage penalty and eliminating incentives for higher education we undercut the benefits of tax policies that have boosted spending power for working families and empowered middle-class America,” English said.

Despite budgetary concerns expressed from both sides of the aisle, H.Con.Res. 312 passed the House floor today by a vote of 212 to 207.

During today’s debate, Republicans offered an alternative to the Democrats’ budget.  Although the Republican Alternative would balance the budget by 2012 without raising taxes, English voted against the substitute, citing concerns over inadequate funding for healthcare programs such as Medicare and Medicaid

“I have long called on Congress to craft a budget that will not only embrace the challenges of our economy but fully meet the needs of the American people,” English said.  “Now is the time for Washington to move past partisan politics and embrace a strong, pro-growth fiscal policy that will hold down spending and provide American working families with responsible tax relief.”

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