WASHINGTON, MAY 8, 2007—The typical American taxpayer could be paying $3,026 more in federal income taxes five years from now, under the budget resolution adopted recently by the U.S. House of Representatives.
A new state-by-state, district-by-district report from The Heritage Foundation estimates the House plan's other downstream costs to taxpayers and the economy include:
- An average loss of $502 in annual personal income.
- A slowing of employment growth amounting to almost 1 million lost jobs.
- A $100 billion hit to economic growth.
These are among the sobering calculations of a report titled "Tax Increases Ahead," Heritage's analysis of what the House budget resolution will mean for each of the nation's 435 congressional districts. The report arrives as House and Senate conferees meet on the budget.
New York residents would lose the most in 2012, Heritage found. That state's congressional districts hold down the first five spots on a "Top 20" list of the hardest-hit districts nationwide. Taxpayers in Rep. Pete King's District 3 face the biggest tax hikes, with an average annual increase of $5,740 (nearly double the national average).
New York districts hold two other slots—for a total of seven—in the Top 20 by size of tax increase. The remaining 13 most-taxed districts, where taxpayers will receive average increases of more than $4,600, are located in New Jersey (four districts), California (three) Illinois (two), Connecticut, Virginia, Georgia and Colorado.
The full report and district-by-district charts for each state from Heritage's Center for Data Analysis are available online at http://www.heritage.org/Research/Taxes/bg2031.cfm.
Adopted March 29 by a vote of 216-210, the House budget resolution does not contain a detailed tax plan. However, the resolution puts the budget on track to collect an additional $894 billion in taxes over the next five years—and $3.3 trillion over 10 years. Lawmakers have said they don't intend to renew the tax-relief measures of 2001 through 2004, scheduled to expire over the next four years. Heritage's report takes them at their word.
The table below shows the "Top 20" hardest-hit districts by size of average tax hike per taxpayer, and how their representatives voted on the budget resolution.
TOP 20 HARDEST-HIT DISTRICTS
State District Tax Hike Representative Vote
NY 3 $5,740 Pete King (R) No
NY 2 $5,681 Steve Israel (D) Yes
NY 18 $5,627 Nita Lowey (D) Yes
NY 19 $5,435 John J. Hall (D) Yes
NY 1 $5,376 Timothy Bishop (D) Yes
CT 4 $5,211 Christopher Shays (R) No
NY 4 $5,177 Carolyn McCarthy (D) Yes
NJ 11 $5,165 Rodney Frelinghuysen (R) No
VA 11 $5,150 Tom Davis (R) No
CA 14 $5,149 Anna G. Eshoo (D) Yes
NJ 7 $5,074 Michael Ferguson (R) No
NJ 12 $5,010 Rush Holt (D) Yes
CA 42 $4,956 Gary Miller (R) No
NJ 5 $4,904 Scott Garrett (R) No
NY 14 $4,813 Carolyn Maloney (D) Yes
IL 10 $4,804 Mark Kirk (R) No
CA 48 $4,743 John Campbell (R) No
IL 13 $4,708 Judy Biggert (R) No
GA 6 $4,678 Tom Price (R) No
CO 6 $4,641 Tom Tancredo (R) No