The Heritage Foundation

News Releases on Taxes

May 8, 2007

May 8, 2007 | News Releases on Taxes

House Budget Seen Hitting Taxpayers, Local Economies Hard

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

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.


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

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