Congressman Jerry Moran joined more than a dozen Members of Congress in calling on President Obama to reject additional tax increases, and expressing their strong opposition to recent statements by White House senior economic adviser Paul Volcker. Last week, Mr. Volcker suggested that the U.S. government consider raising taxes to bring budget deficits under control. More specifically, he suggested the U.S. adopt a "value-added tax," similar to those charged in Europe. A value-added tax would be an additional tax added by retailers on goods and services and would be paid equally by individuals at all income levels.
"As tax day approaches, we are reminded that American taxpayers will work more than three months this year before they have earned enough to pay their annual federal, state and local taxes. Kansans are working hard every day to get by during these difficult economic times and the last thing they need is an additional series of taxes that will threaten job creation and slow down our economic recovery," said Moran.
In the letter, congressional members expressed their concern that "raising taxes will only result in additional hardship for America's families and workers and will do little to get our deficits under control over the long-term." Moran joined his colleagues in asking President Obama to "publicly reject a European-style value-added tax and pledge to work with Congress to reduce federal spending and put our Nation on a glide path toward real debt reduction without increasing taxes."
Dear Mr. President
We are writing to express our strong opposition to recent statements made by White House senior economic adviser Paul Volcker suggesting the United States should consider raising taxes to help bring deficits under control. Specifically, Mr Volcker said the U.S should consider imposing a "value-added tax" similar to those charged in Europe.
We are all concerned about ways to reduce the size of the federal deficit and strongly support returning our nation to a path of fiscal responsibility. However, raising taxes will only result in adding hardship for America's families and workers.
Mr. Volcker's comments come on heels of recent tax increases included in the new health care law as well as expected action on your budget which would eliminate many of the 2001 and 2003 tax cuts and raise taxes on millions of Americans. These tax increases come at a time when federal spending has increased to nearly one-quarter of our economy. This tax-and-spending economic policy is the wrong medicine for our ailing economy and will do little to get our deficits under control over the long-term.
We respectfully call on you to publicly reject a European-style value-added tax and pledge to work with Congress to reduce federal spending and put our Nation on a glide path toward real debt reduction without increasing taxes.
Leonard Lance, Wally Herger, Virginia Foxx, Peter Hoekstra, Michele Bachman, Jerry Moran, Pete Sessions, Scott Garrett, Sue Myrick, Ron Paul, Peter King, Lynn Jenkins, Bob Goodlatte, Lamar Smith, Mark Souder, Donald Manzullo