Earlier this month, the new Majority passed a $2.9 trillion budget resolution for fiscal year 2008, which includes one of the largest tax increases in American history.  This budget also increases our nation’s domestic spending by as much as $22 billion.  How do they propose to account for all of this spending?  By letting numerous tax cuts expire, the Majority will glean billions directly from the pockets of the American taxpayer. The current tax cuts allow Americans to put their hard-earned money toward their homes, retirement, or further education.  When the tax breaks expire, the American people will have fewer resources thereby limiting their investment choices and means to plan for a secure future. 

How will the new Majority spend all of this increase in taxpayer dollars?  By continuing to direct money to already bulging entitlement programs, despite warnings that continued unbridled spending for entitlement spending is unsustainable.  Unfortunately, the “revenue” generated from  letting the tax breaks expire will likely not be enough to cover the proposed increased spending.  To ensure the money doesn’t run out, the Majority included an additional “trigger” tax hike.  Essentially, if surpluses do not materialize—the Democrats spend too much—a tax hike “trigger” will automatically raise taxes even higher.

By increasing taxes on the American people in order to fund their own priorities, the Democrats assume that they know how to better spend Americans’ money.  Higher taxes mean that Americans will have less of their own money to invest.  In fact, the proposed budget stands to raise the average taxes of almost 3 million Virginians by $3,119; this accounts for nearly 40 percent of Virginia residents.  For nearly 3 million Virginians, this means on average $3,119 less to spend on education, home improvements, medical bills, or retirement. 

Unable to meet their spending priorities with real money, the Majority promised $190 billion in “reserve funds.”  The Majority is setting a dangerous precedent in engaging in reckless, irresponsible spending practices. The reserve funds are nothing more than empty pots that they hope to fill with money at some point, but likely after it’s already been spent.  At this point, it is likely we will see even more tax hikes or deficit spending.   What kind of example does that set?  Spend more and try to pay for it later?  We can and should do better than that. 

As elected officials and stewards of the taxpayer’s money, we have a responsibility to put together a sustainable budget and stick to it without increasing the tax burden.  The Congress must continue to work to rein in spending and put to practice a spending approach that many Americans already live by:  if you don’t have it, don’t spend it.