Attack of the Taxes

On the dashboard of the American economy, many warning lights are flashing. One has been flashing longer than the others: Renew Tax Relief Immediately.

The President and liberals in the U.S. House and Senate are attempting to allow tax relief for many millions of Americans to expire. One segment of the taxpaying population facing a dramatic tax increase under their plan is small businesses. Another group which should fear their rhetoric is senior citizens who rely on investment income to supplement their Social Security. And a third group set to suffer the consequences if they get their way is Americans in search of a job: accounting firm Ernst & young says 710,000 American jobs will be lost if tax cuts for small businesses are allowed to expire.

Some 95 percent of American employers pay their business taxes through the individual income tax system, not the corporate tax. So any hike in income taxes is not just a tax increase on families, but also a tax increase on employers.

That is what happens if pro-tax liberals get their way, but if this issue is not resolved then we run a very real risk of a tax increase for every working American family. The result would be an average $1200 tax increase for a typical American family of four in income taxes alone. In total, $4 trillion in tax cuts are on the line over the next ten years.

It has never been good economic policy to raise taxes when growth is stuck under two percent, and it is not good economic policy to do so now. These out-of-touch policies ignore a reality faced by every American family on a budget: the more money we pay in taxes, the less money we have to spend on things like school supplies, medication, summer vacation, tuition and groceries.

I voted this week in the House of Representatives to extend tax relief to all working American families and small businesses so we can give them the certainty they need to get back on their feet.

When we make the decisions about how to spend and save the money in our own pockets, we end up investing in our communities with every dollar. Yet we have seen where tax dollars can end up -- paying for conferences for government bureaucrats, wasted on outlandish bonuses, and frittered away on projects and supplies that can be built better and purchased cheaper. If there is room in the budget for these ridiculous items, then there is simply far too much room in the budget.

Cutting spending is part of the solution, but even more important is a low-tax policy that discourages bureaucracy, governmental excesses, duplications, abuses and waste. In the choice between limiting the federal bureaucracy and limiting Americans' ability to provide for their families, we must choose the people.

Tax relief is a necessary element of a pro-growth economy. This is a bottom-line issue for young professionals just getting started in a tough job market, for working families relying on a single income, for retired senior citizens looking to their savings to make ends meet. At times like these, the last thing we should ask is for Americans to foot the bill for more government, and that is essentially what taxes are.