New tire tax deflates pocketbooks of American drivers | AccountingWEB

New tire tax deflates pocketbooks of American drivers

Late Friday night, President Barack Obama once again broke his central campaign promise not to raise "any form" of taxes on Americans making less than $250,000 per year. Bowing to pressure from organized labor, he made a decision to place a 35 percent tariff on tire imports from China. 

"Make no mistake; a tariff is nothing more than a tax on consumers," stated Grover Norquist, president of Americans for Tax Reform, a non-partisan coalition of taxpayers and taxpayer groups who oppose all tax increases, "This decision will drive up the cost of tires, increasing the economic burden on families already struggling with the high cost of transportation."
 
The families hardest hit by this tax increase will be low-income families, since the tariffs will be applied to low-end tires, costing $50 to $60 as opposed to the $200 to $250 paid for premium tires. According to The Wall Street Journal, Americans can expect to see a 20 to 30 percent increase in the cost of tires.
 
During the campaign, Obama made a "firm pledge" not to raise "any form" of taxes on those making less than $250,000 per year:
 
"I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes."
 
"This is a troubling sign as to where domestic policy is headed under Obama," continued Norquist, "With this decision, Obama has put the interests of his union supporters, too fearful to compete in the marketplace, above the interests of taxpayers."
 
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