Happy Tax Day: Biden Stumps for Callahan in Effort to Elect Another Tax-Happy Democrat

April 14, 2010

Happy Tax Day: Biden Stumps for Callahan in Effort to Elect Another Tax-Happy Democrat

Taxman Callahan Joins Vice President in Celebration of Higher Taxes, Reckless Partisanship

Washington- Tomorrow, Vice President Joe Biden will stump for Democrat candidate John Callahan in an effort to raise some campaign cash on their favorite day of the year – Tax Day. With their mutual love for higher taxes, excessive government spending, and a job-killing healthcare takeover, it’s no wonder Biden will do whatever he can to help Callahan on a day when most Pennsylvanians are signing over a big chunk of their hard-earned income to the federal government. Unfortunately for Pennsylvania families, the money that will be raised will not be going towards paying off the ever-increasing debt accumulated from the Democrats’ budget-busting policies. With an unemployment rate of 9.8 percent, Callahan should be a little more focused on creating jobs and boosting the economy rather than lining his campaign coffers.

Callahan supported the recently-passed healthcare takeover, which includes a huge tax on struggling middle-class families.

“Taxpayers earning less than $200,000 a year will pay roughly $3.9 billion more in taxes — in 2019 alone — due to healthcare reform, according to the Joint Committee on Taxation, Congress’s official scorekeeper.”

“Once the law is fully implemented in 2019, the JCT estimates the deduction limitation will affect 14.8 million taxpayers — 14.7 million of them will earn less than $200,000 a year.”

“Couples earning less than $250,000 will also nicked by the tax, but the exact number is unclear. The JCT lumps this income level in with those making at least $500,000. It estimates that 58,000 taxpayers earning between $200,000 and $500,000 annually will pay $74 million more in taxes in 2019.

“About 5,000 taxpayers earning over $500,000 a year will pay $43 million more in tax because of the limitation.” (Jay Heflin, “JCT: Healthcare law to sock middle class with a $3.9 billion tax increase in 2019,” The Hill, 4/12/2010)

It also includes tens of millions of dollars in medical device taxes – directly affecting Bethlehem businesses.

“To help offset the cost of expanding insurance coverage, a new 2.3 percent tax is imposed on sales of most medical devices beginning in 2013…‘The law will materially increase our taxes and costs by tens of millions of dollars,’ Caroll H. Neubauer, B. Braun’s chairman and CEO, said in a statement. ‘We remain extremely concerned about the effect of this law.’” (Colby Itkowitz, “B. Braun slams new ‘death tax’,” Morning Call, 3/26/2010)

“With John Callahan’s tax-and-spend record, it’s no wonder Joe Biden is so willing to stump for him in Pennsylvania on Tax Day,” said NRCC Communications Director Ken Spain. “Callahan has already proven his loyal allegiance to higher taxes, excessive government spending and a job-killing healthcare bill. If only Callahan was as loyal to Pennsylvanians as he was to Washington Democrats, the economy would be a lot better off than an abysmal 9.8 percent unemployment rate.”

Callahan hasn’t seen a tax increase he didn’t like. He’s raised property taxes four times on the people of Bethlehem and tried to institute a higher sales tax:

In 2002, John Callahan voted for the Bethlehem city budget that included a 5.5 percent property tax increase. (Adopting the 2003 General Fund Budget, Bethlehem City Council Minutes, Dec. 23, 2002)

Callahan voted for the 2004 Bethlehem city budget, which increased property taxes by 2.2 percent, the sewer rate by 8 percent and the recycling fee by 50 percent. “The decision, which raises the property tax for the second year in a row, would boost the rate .25 mills to 11.75 mills.” (Nicole Radzievich, “City Council passes $46 million budget that hikes tax, fees,” Morning Call, Dec. 16, 2003)

In the 2005 budget, Callahan proposed the highest real estate tax increase in a decade, increasing property taxes by 6.4 percent. “After a month of tense budget talks, Bethlehem City Council on Tuesday adopted a $53.4 million budget that will increase property taxes by 6.4 percent, the biggest hike in a decade.” (Nicole Radzievich, “Bethlehem sets tax rate 6.4% higher,” Morning Call, Dec. 22, 2004)

In the next year’s budget, Callahan raised property taxes by 13.4 percent, the largest tax increase in 15 years. “The tax rate will rise to 14.17 mills, the city’s largest property tax since Northampton County reassessed 15 years ago and the fourth tax increase in a row.” (Nicole Radzievich, “Bethlehem taxes set where mayor wanted,” Morning Call, Dec. 21, 2005)
“[Callahan’s] budget was described as “one of the worst takes hikes in more than a decade.” (Nicole Radzievich, “Bethlehem mayor hopes for no tax hike,” Morning Call, Nov. 15, 2006)

In April 2009, during the economic downturn, Callahan told state lawmakers that he supported the idea of a one percent sales tax. (Jeff Hawkes, “Mayors Must Go to Town to Save Cities,” Intelligencer Journal, April 10, 2009)

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