http://tancredo.house.gov/press/presser ... crease.htm

FOR IMMEDIATE RELEASE CONTACT: Will Adams

October 12, 2005
202.226.6997








Tancredo Chides Panel For Middle Class Tax Increase

Slashing Mortgage, Health Care Deductions Penalizes Middle Class, Hurts U.S. Economy


WASHINGTON, D.C. – Congressman Tom Tancredo (R-CO) blasted President Bush’s tax reform panel for suggesting slashing home mortgage and employer health care deductions. It was widely reported this morning that the President’s tax advisory panel will make proposals next month to “clearly redistribute[e]� the tax burden from the upper and middle class to lower-income earners.



The advisory panel will make recommendations to the President which he may endorse or reject. “President Bush will once and for all lose the mantle of conservatism if he embraces tax hikes as ‘reform’. The Republican base urges President Bush to stick to fiscal conservatism and reject this panel’s recommendation,� said Tancredo. “Conservatives voted for the President to move the Supreme Court, to reduce the size of government, and to lower taxes. He has disappointed the base on the first two counts. This would be strike three, and his presidency is out.�



The tax advisory panel was charged with, “reform[ing] the tax code to make it simpler, fairer, and more pro-growth to benefit all Americans.� Instead of a fundamental reform that would reduce the tax burden or cut compliance costs, the panel has rejected visionary proposals to introduce a national sales tax or flat tax. “Even if the panel’s recommendations are revenue-neutral, reducing the tax code compliance costs would create jobs and make America more competitive. Eliminating the legions of tax lawyers and accountants is a sure-fire way to reduce job outsourcing,� said Tancredo. “It looks like the panel is putting out a list of ‘offsets’ rather than any kind of comprehensive or philosophical reform to the tax system. As usual, Washington's idea of ‘reform’ is anything but.�



Home ownership has boomed, enabling many Americans to enter the middle class while saving for the future. At the same time, perhaps the most pressing issue facing U.S. employers is spiraling health care costs. For instance, the head of Starbucks recently projected that the company will spend more on employee health care than it will on coffee beans.



“How will raising taxes on home mortgages and health care grow the economy? How will hiking taxes on mortgages further the President’s vision of an ‘ownership society’? How will increasing the cost of health care create incentives for more Americans to be covered?� asked Tancredo. “The average home price in Colorado is around $350,000. If the President’s panel gets its way, a majority of home owners in Colorado would see their taxes go up. This tax increase would be aimed straight at the middle class.�