no tax increases

We Need A Tax Code That Makes Sense

Mitt Romney’s tax rate continues to be the topic of much debate over whether or not he paid his “fair share”, but the fact is that this debate is backward. The debate should not be about if what someone is paying is fair, it should be about if the tax code itself is fair. To that end, the whole country should be in agreement that it is NOT fair.

In 1895 the Supreme Court of the United States declared the income tax unconstitutional. Since then, the Congress has overruled the court and consequently the tax code is currently 2,500 pages long; nearly 7 times the length of the bible. Not only is this insane, but it is truly unfair!

The tax code is full of holes, punishes success and even punishes inheritance after a family member’s death! It needs to go. The Contract From America seeks to change this. We want to enact real tax reform, and make the code flatter and fairer. Less people would point fingers about others’ tax rates if they fully understood the tax code and felt that everyone was treated fairly, something which currently can’t be said.

Following Europe Will Lead To Collapse

In the Eurozone Spain is bracing for yet another round of painful austerity as a result of its unsustainable debt. These cuts will cripple entitlement programs that people built lives around, they will cause a spike in unemployment, and put the national security of its people at risk. This is the path big government takes you down; ballooning debt, then a crash where the bottom is not discernable.

Then why does this administration feel that the best way to fix our problems at home is to follow the same path that Europe has? Our budget deficit continues to balloon with no signs of stopping or slowing down. Historically when a nation’s debt reaches 90% as a share of GDP, economies will stagnate. Currently we are at 70% and will hit 90% in under 10 years.

This is unacceptable and can be avoided by adopting the Contract for America’s terms to pass a balanced budget amendment. This amendment will ensure spending does not accelerate at the rate it currently is and spending growth will be capped as a percentage of GDP.

Until this amendment is passed, politicians will continue to tax and spend faster and faster. When money is not coming physically out of their pockets they see no reason they can’t spend it. American government deficit spending needs to stop immediately.

$1,200 Per Family In New Taxes

On Wednesday the Associated Press reported that over 6 million uninsured people will get hit by a tax penalty as a result of Obamacare. This tax penalty works out to about an average of about $1,200 per family in 2016. Even more concerning is that this tax will hit mostly middle class households.

Obamacare is flawed legislation based on a flawed premise. Although it was well documented that the main complaint about health care was the cost and addressing the problem, the government instead got involved and created a massive federal entitlement program that is hurting those it should be helping.

Citizens all over the country have spoken out for the repeal of Obamacare by voting to include it as a main pillar of the Contract From America. Wednesday’s findings simply add more evidence to the core argument that Obamacare is financially unsustainable, does not address the main problem of private healthcare, and makes more people dependent of the government.

If we want to return to fiscal responsible governing we must repeal Obamacare and replace it with a plan that works and we can afford so our children don’t spend their whole lives paying for it.

Stop the Tax Hikes

Permanently repeal all tax hikes, including those to the income, capital gains, and death taxes, currently scheduled to begin in 2011.

SUMMARY

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