This week the House of Representatives will vote to stop the largest tax hike in American history, which, absent legislative action, is set to occur on January 1, 2013. I hope the Senate and President Obama will join us. Last week's report of the economy growing at an anemic 1.5% is further evidence that tax increases are not what our nation needs.
Don't be fooled into thinking this impending tax hike is "on the other guy" or "only on the rich." President Obama is demanding that federal taxes go up on nearly every single American and nearly every single business. Whether you make more or less than $250,000, whether you own a business or work at one, whether you are retired and receiving dividend income or whether you are a Kansas school teacher who is provided health care under your employer's plan--your taxes will go up. It will even become far more expensive for many people to die, with a major increase in the estate tax taking effect. All of this will occur as a direct result of the President's deep and open desire to raise taxes and spread the wealth.
This pending federal tax increase would be on top of several tax increases the Democrats have already given each of us. President Obama's health care takeover increases taxes by $800 billion over the next ten years alone. More than a dozen of those tax increases--including the individual mandate--hit the middle class squarely. These increases violate his oft-repeated promise not to raise taxes on those making less than $200,000. They also lower incomes as the threat of tax increases has caused the economy to remain stagnant with unemployment above 8 percent for 41 consecutive months.
The anticipated economic consequence of such an enormous tax hike is so devastating that the media has coined the term "Taxmageddon" to describe it and suggested that a failure to stop it would be equivalent to driving our economic car off a "fiscal cliff."
How big is the impending tax increase? In 2013, every taxpayer in Kansas will be charged with paying an additional $2,984 in federal income taxes. The increased tax payments of all the families in Kansas' Fourth District put together totals a staggering $1 billion, $4.2 billion from all Kansans, and $494 billion nationwide. The tax increase would target Kansas families, low-income workers, and retirees--and it would be the largest tax hike our state has ever had to endure.
The President has it backwards. We don't have a problem with too few taxes. Our problem, rather, is that we have too much federal spending. The federal government is already 20% bigger than when President Obama took over. We have more people on food stamps and more people drawing federal disability benefits than ever before in our nation's history. A tax increase will just make these problems worse by further stunting economic growth.
I firmly believe that the first thing Congress must do to provide economic certainty is to stop the tax hike now. Until American families and job creators are certain their federal taxes will not be increased, we cannot get the economy back on track. This week I will vote in the House of Representatives to approve a bill that would provide that certainty by halting Taxmageddon in its tracks. If President Obama and Senate Democrats follow suit, the result will be relief and certainty for small businesses and families that would propel economic growth and create a job for every American who wants one.