Permanently repeal all tax hikes, including those to the income, capital gains, and death taxes, currently scheduled to begin in 2011.
Taxes are already high enough in America. According to President Obama’s own Office of Management and Budget, total government taxation (federal, state, and local) ate up 28 percent of our entire economy in 2008 (the latest available year). Every dollar collected in taxes is a dollar not available to be re-invested by the American economic growth engine—the private sector. When the tax burden rises, it crowds out private sector investment and depresses future economic growth. The good news is that the reverse is also true—when taxes are cut (especially the most growth-stifling taxes), it frees up capital for long-run economic growth. This growth translates to more jobs, higher wages, and an increased standard of living for all of us.
A gargantuan amount of federal tax increases is scheduled to take place on New Years Day 2011. Income tax brackets will rise from a range of 10 to 35 percent up to a range of 15 to 39.6 percent. The capital gains tax rate will rise from 15 to 20 percent. The dividends tax rate will rise from 15 to 39.6 percent. The death tax will go from fully-deceased to a 55 percent rate and a measly $1 million exemption. Itemized deductions and personal exemptions will again “phase out,” pushing the mathematical top rate over 40 percent. And these are just the worst ones for economic growth. Clearly, to prevent an economic train wreck, these tax hikes must be stopped.
~ Ryan Ellis, Americans for Tax Reform