Tax cuts have led to a strong economy, low unemployment, and substantial savings for American families. Since the Republican tax cuts were passed, we have had nearly four straight years of economic growth producing record revenues and shrinking deficits. As a strong fiscal conservative, I believe the government should stay out of our pocketbooks and allow us to keep more of our hard earned dollars.

Unfortunately, Democrats in Congress believe in higher taxes and bigger government and are calling for a tax hike of $392.5 billion, the largest tax increase in history. By calling for this tax hike to pay for more of their pet projects, Democrats are returning to the same tax and spend habits they displayed the last time they were in power. In 1994, Democrats hit Americans with a tax increase of $240 billion, which was also the largest increase in history at that time. Our country deserves lower taxes for all Americans and a Balanced Budget Amendment to ensure we do not to pass along massive debt to our children and grandchildren.

Our convoluted tax code is beyond repair and targets taxpayers with unfair penalties such as the Alternative Minimum Tax. It is time to reform our broken tax policies and create a more equitable system that repeals the AMT and provides relief to all taxpayers. No American should ever live in fear of an audit or IRS harassment because they innocently misfiled a return by not including some obscure form or by misusing some confusing credit.

I trust the American people to know the best way to use their own money and that is why I am a dedicated cosponsor of the Fair Tax, which taxes consumption rather than income. My predecessor, Bill Archer, knew that by taxing consumption in a similar manner to a state sales tax, we could permanently scrap the burdensome income tax system and the IRS. These reforms would allow Americans to receive their full pay check and would turn Tax Day into just another day in April.

Here is a breakdown of the Democrat tax increases. According to the Tax Foundation, residents of District 7 pay the tenth highest taxes in the country.

• Raises Estate Taxes – Also known as the “Death Tax,” the Estate Tax would rise from 0% in 2010 to 55% in 2011. This tax unfairly burdens small businesses and farms by allowing the government to collect over half the value of a family run small business when someone dies. Small businesses are the backbone of the American economy and the tax code should encourage passing on small businesses. No family should have to sell their business or property to pay taxes to the IRS.

• Increases the Marriage Penalty – The 2001 tax cuts reduced the marriage penalty for couples, but the marriage penalty will come back in full strength under the Democrat budget. This reduction helped to ensure that married couples would not pay more in taxes than if they had filed separate individual returns. The U.S. tax code should never penalize couples for choosing to marry.

• Increases Taxes for the Lowest Tax Bracket – One in four Americans with taxable income are currently taxed within the 10% tax bracket, which is the lowest bracket. In the Democrat budget, the ten percent bracket will disappear and the lowest bracket will be set at 15%. Over 100 million Americans submitted returns within this bracket, including forty percent of heads of households, meaning this widespread increase targets middle class and lower income Americans.

• Increases Dividends and Capital Gains Taxes – Before the 2003 tax cuts, only Japan had higher taxes on investment income among developed countries. Under the Democrat plan, taxes on dividends will double to pre-2003 levels and capital gains taxes will also increase. 28 million families who currently save an average of $1000 a year on taxes due to the 2003 cuts on dividend and capital gains taxes will begin to pay higher rates. This tax hike disproportionately affects seniors who rely on investments during retirement. Approximately 65% of senior citizens will see tax increases on dividend income and 30% will see tax increases on capital gains income.

• Reduces the Child Tax Credit – The child tax credit will shrink from $1,000 to $500. This credit was designed to help parents make ends meet once they had a child, but this reduction will lead to higher taxes for families.

• Raises Taxes for the Highest Tax Bracket – The highest tax bracket will increase from 35% to 39.6% for Americans, meaning that many high income earners will now pay significantly more in taxes.