-- Randy’s Roundup --

Special Edition: TAX DAY 2010

April 15, 2010

To view my Tax Day 2010 video, please click here.

Today is a ‘special day’ for the American people.  It’s the day Americans are reminded just how much of their money goes to Washington – the money they’ve labored to earn all year – so that the Democrat Majority can continue on its spending spree.  

Over the past several years, it has become obvious that the federal government has a problem. It taxes too much, spends too much and borrows too much. Today is a reminder of just that.

Sadly, at a time when 15 million Americans remain unemployed and many more are struggling to make ends meet, the Democrat Congress and President Obama continue to advocate policies that increase taxes and add to government spending that is already out of control. Since January 2009, Congress has enacted $670 billion in new taxes. The Democrats in Washington just don’t get it when it comes to taxes.

Excessive borrowing, spending and debt resulted in many of the problems the government, individuals and businesses now face.  More of the same is not the answer.

President Obama and congressional Democrats are spending the federal government into record deficits that surpassed, and will continue to exceed, $1 trillion last year, this year and next year.  Spending is rising faster than taxes could even be raised to pay for it all, which is why the nation’s debt will double over the next 10 years. 

What does more debt mean for your taxes? Doubling the national debt by 2020 will mean a third of all income taxes the federal government collects that year will go toward paying interest on that debt.  That’s about $1 trillion in income taxes that will go toward interest rather than the things we expect the government to spend our money on such as national defense, veterans health care and other services.

Then there are the taxes that come with the new health care law. Just this week, the Joint Committee on Taxation reported that the health care bill Democrats rammed through Congress last month would violate the President’s pledge not to raise taxes on those with lower incomes by raising billions of dollars in taxes on those earning less than $250,000 a year.

That is only the start. Employer mandates and taxes penalize business owners. Medical device taxes will hurt the companies that make them and the people who need them. The new health care law will even take away the tax-free benefit for buying basic medicine cabinet products using a Health Savings Account or Flexible Spending Account.  The $570 billion tax increase that came with the health care law must be repealed and replaced with policies that will actually lower Americans’ health care costs.

Federal, state and local taxes claim almost 27 percent of the average American’s income. That means most Americans have probably worked the first three months of this year just to pay their taxes. And unless Congress takes action this year, tax relief enacted in 2001 and 2003 will expire, meaning everyone will pay even more in taxes next year.  The tax provisions that are scheduled to expire include:  lower rates for individual tax brackets, marriage penalty relief, an increased child tax credit and others.  Allowing these tax policies to expire would increase taxes by billions of dollars for families and small businesses at a time when our economy can least afford it.  

Higher income taxes, uncertainty about the death tax and higher taxes on dividends would decrease investment, leading to fewer new businesses and fewer business expansions --- ultimately resulting in fewer new jobs that Americans need.  Higher income tax rates, the marriage penalty and a lower child tax credit would be less money for Texas families to decide how to spend and more money for Washington to spend. 

I have introduced H.R. 4746, the Taxpayer Certainty Act, which would prevent these pending tax increases and further uncertainty for families and small business owners trying to create jobs. As a former small business owner, I know these businesses will be the economic engine driving our country into full economic recovery, and they would suffer terrible damage by allowing these tax increases to happen.

If we want to get Americans back to work, raising taxes is a not the solution.  The answer is less borrowing and spending in Washington, DC and tax relief for working families and small businesses.  I am committed to the people of the 19th District. I will oppose each and every effort to raise taxes on individuals and businesses as well as efforts to increase government spending.

The American people already know that we can’t spend and tax our way back to a growing economy. It’s time for Congress to put the American people first and take steps that lessen the pain of tax day.

Tax Facts

If you want to learn more about tax policies and tax reform proposals, you may be interested in visiting one of these sites below.

The Tax Foundation: http://www.taxfoundation.org/taxfreedomday/

National Taxpayer’s Union: http://www.ntu.org/news-and-issues/taxes/tax-forms-cost-americans-billions.html

Fair Tax: http://www.fairtax.org

Republican Study Committee: http://rsc.tomprice.house.gov/UploadedFiles/PB_040110_TaxFacts.pdf

As always, when events unfold in Washington, I will be sure to update you. In the meantime, do not hesitate to visit my website or call my office toll free district wide at (888) 763-1611 or my Washington, DC office at 202-225-4005.