NJ Lawmaker Says Tax-and-Spend Policy Will Do Little To Get Our Deficits Under Control Over Long-Term

WASHINGTON – Congressman Leonard Lance (N-07) is leading an effort in Congress calling on President Obama to reject a European-style value-added tax that was recently supported this week by senior White House economic adviser Paul Volcker.

In a response to press reports that Volcker suggested instituting a European-style value-added tax in order to bring federal deficits under control, Lance spearheaded a letter to President Obama strenuously opposing such an approach.

“We share Mr. Volcker’s concerns with the size of the federal deficit and strongly support returning our nation to a path of fiscal responsibility,” Lance’s letter said. “However, raising taxes will only result in additional hardships for America’s families. This tax-and-spend economic policy is the wrong medicine for our ailing economy and will do little to get our deficits under control over the long-term.”

Lance noted that it was also troubling that these comments came on the heels of recent tax increases that were included in the new health care law as well as expected action on the President’s budget which would eliminate many of the 2001 and 2003 tax cuts and raise taxes on millions of Americans.

“We respectfully call on you to publicly reject a European-style value-added tax and pledge to work with Congress to reduce federal spending and put our Nation on a glide path toward real debt reduction without increasing taxes,” Lance wrote in his letter to President Obama.

CLICK HERE to view Lance’s letter.

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