Study Shows "New Direction" Could Lead To Higher Taxes
The Democratic Party’s "New Direction for America" could mean more economic solidity, but might also result in higher taxation, according to a recent study.
According to a line-by-line analysis of the program by the National Taxpayers Union Foundation, the plan includes billions of dollars of new spending.
For example, the largest spending program is the "G.I. Bill of Rights for the 21st Century." This program would provide increased pay, health care and benefits for veterans and their families. The cost of the program would increase outlays by $99 billion over the next five years. The top income tax rate would be increased to offset the increase.
In addition to the noted costs, NTUF Senior Policy Analyst Demian Brady noted that there are several "cost unknown" items that would significantly increase the net total spending that the Democratic agenda is seeking. One of these items includes a proposal to screen 100% of all inbound US Cargo.
"Americans should take note that proposals containing many political promises are likely to contain many tax dollars as well," Brady said.
"Given that the average House Democrat’s agenda in the last Congress would have boosted spending by $521 billion, the ‘New Direction for America’ may appear to be modest," he continued. "Many taxpayers, however, are probably hoping that if Democrats take control of Congress, they will somehow find the fiscal responsibility on Capital Hill that has been lost amongst slabs of pork-barrel spending and IOU’s from unfunded program liabilities."
Other major spending plans include a proposal for a savings account system in which the federal government would match dollar-for-dollar the first $1,000 a citizen contributes to a personal retirement plan. This is estimated to cost taxpayers $7.5 billion each year.
The largest item in the spending program is healthcare spending at $28.8 billion. It includes reforms to the Medicare prescription drug program and accounts for 36% of the increases. Other spending includes education increases for teacher recruitment and lower student interest rates.
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