During a time when we are seeing double digit unemployment rates in the 8th District how can anyone think we can borrow, spend and tax our way out of the current economic crisis? Bailouts were promised to lower the unemployment rate and create new jobs but so far all that has resulted is an explosion in government spending that will saddle my kids and yours with massive debt. Washington wants to create $572 billion in new taxes. The burden of these taxes will fall on small businesses which are the lifeblood of the American economy. The last thing the government should be doing is enacting policies that paralyze our economy's ability to recover. I support spending restraint and doing away with wasteful and duplicative programs.
Just one such example of wasteful spending I was recently made aware of was $389,000 in taxpayer money from the stimulus going to a New York University for a study on "Malt Liquor and Marijuana; Factors in Their Concurrent Versus Separate Use". How does paying people with tax dollars to get high off their favorite vices do anything to create or save jobs which was the alleged purpose of the stimulus? In addition to finding fiscal sanity, the tax code needs significant reform. It is fundamentally flawed by punishing innovation and the entrepreneurial spirit that has made this nation great. Our tax system needs to put less money in the government's hands and more money in middle class pockets.
President Reagan said, "Common sense told us that when you put a big tax on something, the people will produce less of it. So, we cut the people's tax rates, and the people produced more than ever before. The economy bloomed " No truer words were ever spoken. With the tax relief of 2001 and 2003, revenue is 15 % higher each year.
Nobody likes paying taxes. It is not just paying taxes that hurts it is figuring out just what you owe. Instead of what paying what you owe as easy as possible, our tax code is an obstacle for those Americans who want to pay their fair share.
President Bush's bipartisan panel on Federal Tax Reform found that there are more than 1 million words in our tax code and the number of pages has doubled over the last 20 years. In 1940, it took only two pages of instructions to explain how to fill out the regular Form 1040; today, there are 36 pages of instructions accompanying the 1040 EZ, commonly known as the "short" form, and the panel found that it takes the average taxpayer 11 hours to complete it. All in all, the panel found, Americans spend close to $140 billion each year just to comply with their tax obligations.
Rules, regulations and taxes have enabled all levels of government to take more of our money, more of our options and more of our freedom. If you put a big tax on something people will produce less of it. More freedom means more opportunities for economic growth and thus a stronger North Carollina and a stronger America.
Our current tax code is a complex and cluttered mess that discourages economic growth. It penalizes hard work, discourages saving and investment and hinders the competitiveness of American businesses in our economy. American taxpayers deserve a tax code that is fair, simple to understand and allows them to grow and flourish.