Hiking Taxes Just a Bad Idea.

Statement

Hiking taxes just a bad idea.

In May, taxpayers will begin receiving checks from Uncle Sam of up to $600 per person. The checks are part of the stimulus package passed by Congress in February to boost the economy.

But wait. The Democratic majority decided to reverse this stimulus by passing a spending plan for 2009 that included the biggest tax hike in U.S. history. Many residents of North Texas will find any economic stimulus payment clawed back from them in higher taxes.

I voted against the Democratic budget that created tax hikes that hammer the budgets of lower- and middle-class Americans, including:

Raising the 10 percent tax rate to 15 percent. The 10 percent bracket is paid by America's lowest wage earners.

Re-instating the marriage penalty. Eliminating the marriage penalty has never been popular with Democrats.

Reducing the per-child tax credit. The Democrats voted to cut it in half.

Resurrecting the Death Tax. Only in America can you receive a certificate at birth, a license at marriage and a bill at death.

And that's only the beginning. The average tax increase to Third District taxpayers would be $2,669 in 2009. That's a lot of money!

On top of that, the Democrats' budget failed to reign in out-of-control government spending. The Democrats' budget ignores the looming mandatory spending crisis in Social Security and Medicare, often called entitlement spending. Failing to make tough decisions now, coupled with throwing money at the bloated programs, endangers the long-term health and retirement safety nets.

The only real action the Democrats take on reforming Social Security, Medicare or Medicaid is to kick the can down the road another five years. What is the cost of their irresponsible inaction? Roughly $14 trillion! By refusing to make the tough decisions on how to resolve the serious financial trouble these programs are facing, the Democrats have decided to leave the decisions to someone else. That is not acceptable.

Make no mistake: The Democrats' spending plan will hurt the economy. Lower tax rates equal higher tax revenues. That's because when taxpayers have money to spend, they do. Any economist will tell us that spending drives the American economy.

I propose a better way forward. Congress should make the tax cuts of 2001 and 2003—outlined above—permanent. The American economy works best when uncertainty is lessened. Making the cuts permanent—really permanent—would not only provide a real psychological boost, but, more importantly, it would help working families pay their mortgages and put food on the dinner table.

If Democrats are serious about fiscal responsibility, as they often claimed to be when it's time to campaign for re-election, then they haven't shown it.

I am prepared to work with my colleagues on the other side of the aisle to address the significant fiscal challenges before Congress, but gigantic tax hikes and government spending boosts are not a good first step. Americans want, need, and deserve better.

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