When President Obama released his budget plan three weeks ago, it included a whopping $1.6 trillion in new taxes. The plan contained $989 billion in various tax increases and a $646 billion cap and trade tax. As we previously noted, if enacted, this would be the largest tax increase in American history.
But it turns out the Administration’s budget did not reveal the entire truth. A top White House aide told Senate staffers that cap and trade tax would be much higher than the initially reported $646 billion. In fact, Jason Furman, the deputy director of the National Economic Council, told Senate staffers the tax would cost American taxpayers between $1.3 trillion and $1.9 trillion.
A $1.6 trillion tax raise is huge—but a tax increase of $2.3 trillion or $2.9 trillion is astonishing. To put that in perspective, that is a tax increase of $7,500 to $9,500 per American.
Let’s hope the cost of the President’s budget does not continue to escalate.