NEW BUDGET PUTS TEXANS IN A RUT
Thursday, March 27th, 2008I am told the Canadian Northlands experience only two seasons, winter…and July. As the back roads begin to thaw, they become muddy and vehicles traveling through the backcountry leave deep ruts. The ground freezes hard during the winter months, and the highway ruts become part of the traveling challenges. For vehicles entering this undeveloped area during the winter, there is a sign which reads, “Driver, please choose carefully which rut you drive in because you’ll be in it for the next 20 miles.”
I often tell this story when talking about budget season in Washington. Every year, Congress passes a budget resolution that sets the spending levels for the year. The budget is a sizeable document, funding everything from agricultural to veterans’ affairs. Like Central Texas families, I am mindful that some things in the budget are “needs,” while others are “wants”. As a fiscal conservative, I have worked to eliminate wasteful government spending and keep taxes low.
Unfortunately Washington Democrats don’t see things the way common sense Central Texans see them.
This week, the Majority introduced their yearly budget plan. Much like last year’s budget proposal, this one includes major tax hikes. In fact, it nearly doubles the tax hikes from last year totaling a whopping $683 billion in new taxes for working families and small business owners. On top of this, the Democrats’ budget once again refuses to address the looming crisis in the Social Security, Medicare and Medicaid entitlement programs.
Families in Texas are feeling the strain of sky-rocketing gas prices, decreasing home values, and increasing health care costs piled high on the back of a slowing economy. The last thing they need is to pay more taxes. If this budget passes, Texas families and small business owners will once again pick up the check for billions in new wasteful Washington spending -“wants” if you will. How can this happen you might ask? Simple, Democrats will allow the Republican tax relief, such as the repeal of the death tax and the marriage penalty to expire over the next four years. While you won’t see your tax bill rise substantially immediately, in a few short years, 116 million taxpayers will see their taxes increase an average of $1,833-the largest single tax increase in American history.
According to The Heritage Foundation, between now and January 1, 2001 many critical tax provisions will expire, “Tax rates will rise substantially in each tax bracket, some by 450 basis points; Low-income taxpayers will see the 10-percent tax bracket disappear, and they will have to pay taxes at the 15-percent rate; Married taxpayers will see the marriage penalty return; Taxpayers with children will lose 50 percent of their child tax credits; Taxes on dividends will increase beginning on January 1, 2009; Taxes on capital gains will increase, also beginning on January 1, 2009; and Federal Death taxes will come back to life in 2011, after fading down to nothing in 2010.”
As irresponsible as the enormous amount of unnecessary spending and reinstated taxes, the deliberate refusal to address the entitlement crisis is equally as irresponsible. It’s been said too many times without being heard-the Social Security, Medicare and Medicaid entitlement programs are quickly dying. Without immediate action by Congress, these programs will go belly-up in the next few decades, leaving millions of Americans without the Social Security and Medicare benefits they earned through years of hard work.
The Democrats’ budget will leave Americans with nothing but empty pockets and a crushed economy. As we officially begin the budget debate, we must remember that the choices we make today will affect our nation for years to come. The last thing we should do is make a choice that will leave our country in a rut. You can bet that I will be working with Republicans and fiscally responsible Democrats to fight for a fiscally responsible budget resolution that balances the federal budget without raising taxes and keep this country out of a rut.