The Heritage Foundation recently put out a mock trailer for their non-existent movie “The Obama’s Tax Hike: The Movie.” It is a really well done video about the $3.1 trillion in tax hikes that will smack taxpayers in the face come January 1, 2011 unless Congress TAKES action. I honestly can’t remember the last time I actually wanted Congress to take action but I’m sure they’ll screw it up.
Allowing these massive tax hikes to take effect with or without a vote would further entrench the cynical view that the overwhelming majority of Americans hold towards Congress. These tax hikes would not only put our economy in an even more precarious position, but would also do little to solve our deficit problems.
Even if some of the “middle class” tax increases don’t take effect, the tax hikes on estates, higher incomes, and investments would further endanger an already-frail U.S. economy. They would significantly discourage capital investment and could lead us into a double-dip recession.
Those concerned with deficits must understand that without serious spending reforms, the nation’s long term deficits will remain inevitable and incurable regardless of how many taxes are raised. In order to rein in the federal deficit, Congress must control spending and create an economic environment that fosters growth – which would provide more revenue.
There is too much at stake to let the Bush tax cuts be used as class warfare tactics in order score political points.
Click here to read more about the Bush tax cuts.