There are two sources for this article--an article by Republican Congressman Mike Pence at Townhall.com and an article by Larry Kudlow in yesterday's National Review Online.
Larry Kudlow points out that the numbers show that tax cuts are not the cause of our current financial crisis. He reminds us that in the '80s and '90s, during the Reagan and Clinton Administrations, the debt-to-GDP ratio averaged around 40 percent. Mr. Kudlow states, "During those years government debt held by the public did increase $2.4 trillion. But household wealth jumped $32 trillion."
The problem is not the tax cuts--the problem is the spending. Mr. Kudlow reminds us:
"And let's not forget that tax rates are coming down around the world, both for individuals and businesses. High tax rates in the U.S. will cause us to lose the global race for capital. At some point the question of taxes is really an issue of economic freedom. Let people keep more of what they earn. Marginal tax rates produce huge incentive effects for work, investment, and risk. Higher tax rates undermine economic growth and entrepreneurship. So let's go for tax reform, with flatter rates and a broader base that gets rid of unnecessary deductions, credits, exemptions, loopholes, and special-interest subsidies."
Congressman Pence tells us that the small business owners in America face the highest tax increase in history on January 1, 2011. These tax increases kick-in automatically if the Bush tax cuts expire.
Congressman Pence states:
"America's private sector has suffered enough for the past 18 months under the failed economic policies of the Obama Administration and Congressional Democrats. Nearly 15 million Americans are out of work and unemployment hovers near a heartbreaking 10 percent. The National Federation of Independent Business (NFIB) reported that optimism among small businesses "is dismal, capital expenditures are at 35-year lows and small businesses are still cutting more jobs than they are adding." The NFIB also said that Congress must act quickly to ensure no tax increases for business owners in January."
Congressman Pence states, "That's why House Republicans are determined to fight this tax increase with everything we've got. We've been hearing from the American people at AmericaSpeakingOut.com and we understand that the problem is not that Washington doesn't tax enough. The problem is that Washington spends too much, and the solution is leadership in Congress that will make the hard choices and sacrifices necessary to rein in spending."
Tax cuts are not the problem--spending is the problem. It's time to take the credit card away from our current Congress. Check voting records of your Congressmen before you vote in November. If your Congressmen have been spending wildly, replace them with new Congressmen who understand that they will be voted out of office if they continue in that direction.
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