Tax Day is over for this year, but that deduction from your paycheck is a constant reminder of the high cost of government. Taxes take a lot from our families, small businesses and from the economy. I believe you are taxed enough already and President Obama needs to recognize that.
The House of Representatives recently signified their support of the Republican's 2012 budget proposal which will reduce the federal budget by $4.4 trillion. It does so by cutting out unnecessary spending. It would defund ObamaCare of its unspent pre-appropriated funds which are an astonishing tens of billions of dollars that were buried in the bill by Nancy Pelosi and Harry Reid. Plus, it would make the tax code flatter and simpler, making Tax Day a less dreaded time of the year. I supported that budget blueprint, though I've expressed caution about how we approach the issue of Medicare. We must keep our promises to those who receive Medicare benefits, and those who are nearing the age of Medicare eligibility. Our challenge is to reduce the soaring amounts that government spends on health care, without burdening those who are most vulnerable.
Unfortunately, some in Washington think they can spend your money better than you; most notably the occupant at 1600 Pennsylvania Avenue, President Obama. When Obama announced his second-attempt at a budget solution for the fiscal future of the nation many Americans cringed at his suggestions. Obama thinks we can save the economy, and the future of our nation, by raising taxes.
He said, "As a country that values fairness, wealthier individuals have traditionally born a greater share of this burden than the middle class or those less fortunate. This is not because we begrudge those who've done well -- we rightly celebrate their success. Rather, it is a basic reflection of our belief that those who have benefitted most from our way of life can afford to give a bit more back."
What President Obama doesn't understand is that wealth creation isn't a bad thing. Wealth creation is what allows businesses to hire, and in turn, for an economy to prosper. In Obama's proposal, couples making $250,000 a year are considered wealthy. In reality, couples with that income are often the small business owners in our communities. They are the job creators who Obama wants to tax more heavily.
I cannot stand idly by while he tries to put this leftist agenda on the American people. One of the first pieces of legislation I introduced in the 112th Congress is called the End Tax Uncertainty Act of 2011. As a former federal tax attorney I know this bill could bring positive changes to our complex system. It would repeal the death tax and gift tax and prevent tax increases on the maximum tax rate for capital gains and dividends income for all Americans. Furthermore, it would permanently patch the Alternative Minimum Tax and reduce the corporate tax rate to twenty-five percent.
This is a first step towards reform in Washington. The complex tax code is a byproduct of an out-of-control, gigantic government which needs to be downsized. In 2010 alone the federal government spent $3.5 trillion. Sadly, it comes as no surprise our debt is over $14 trillion and we nearly have met our debt ceiling again. The debt ceiling has been raised ten times since 2001. Now the Washington establishment is calling for the debt ceiling to be raised again. I'm adamantly against this because raising the debt ceiling will just give Congress and the President a free pass to keep spending. This record spending needs to stop and it can stop by keeping the debt ceiling as-is. That means we would have to prioritize and start paying down our debt.
If any of my children had come to me as teenagers and asked for an unlimited credit card I would have said, "no", without a single reservation. But, Congress has an unlimited credit card taken out in the name of the American Taxpayer. We have the power to cut this credit card in half and put ourselves on the road to fiscal prosperity. This needs to happen sooner than later, especially in light of the startling U.S. credit rating downgrade to "negative" by the S&P. The negative rating is bad, but worse would be if we lost our "AAA" rating. We must act now before our economic standing in the world is weakened further.
Tax Day 2012 may be a year away, but it's not too early to for Washington to start reforming the way it works.