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ATR: Obama Lied, His Tax Pledge Died
Date:11/6/2009

efing) [Transcript]

Further, on August 3, 2009, Gibbs is once again asked about the President's tax pledge, to which Gibbs replied: "I am reiterating the President's clear commitment in the clearest terms possible, that he's not raising taxes on those who make less than $250,000 a year." (White House Briefing) [Transcript]

Yet today, Obama formally endorsed H.R. 3962, which is loaded with tax hikes on families making less than $250,000 per year. Here's how:

Health Insurance Mandate Taxes on Working Families

  • Individual Mandate Excise Tax (Page 296): If an individual fails to obtain qualifying coverage, he must pay an income surtax equal to the lesser of 2.5 percent of modified adjusted gross income (MAGI) or the average premium. MAGI adds back in the foreign earned income exclusion and municipal bond interest. There is no exception for families making less than $250,000.
  • Employer Mandate Payroll Tax (Page 275): If an employer does not pay 72.5 percent of a single employee's health premium (65 percent of a family employee), the employer must pay an excise tax equal to the following schedule:
    Payroll Tax Rate         Average Payroll Size
    N/A                      Less than $500,000
    2%                       $500,000-$585,000
    4%                       $585,000-$670,000
    6%                       $670,000-$750,000
    8%                       Greater than $750,000

Small business owners pay their taxes on their owners' personal tax returns. Since this provision does not ex
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SOURCE Americans for Tax Reform
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