There they go again.
Recently Congress passed a bill to avert the so-called fiscal cliff. But instead of focusing on the real driver of our fiscal imbalance, runaway government spending, Congress passed a bill that’s all taxes and no serious spending reductions. The bill was filled with terrible economic policy from top to bottom. The one bright spot is that we’re finally starting to establish some permanency in the tax code, an important element of economic stability.
Here’s a quick rundown of the bill:
Taxes: the bill fails to protect the economy from all the tax hikes. Everything from capital investment, to labor, to consumption, and even death will be more heavily taxed in 2013. None of that will spur economic growth.
Spending: remember when both President Obama and Speaker Boehner talked about a “balanced approach?” This bill is a classic Washington tax-and-spend bill with no spending cuts to be found. What’s worse, it actually includes billions in new spending.
Even while raising taxes on hardworking Americans, Congress recognized that high taxes hurt economic growth and so they handed out myriad special carve outs so their friends wouldn’t feel the bite. Wind energy, motorsports entertainment complexes and even the hard-up Hollywood tycoons got a special tax break in the bill.
In addition to the damage these policies will do to the economy, raising taxes in a deficit fight just puts a Band-Aid on the problem. Runaway government spending is still the main problem with the federal budget and with the nation’s economy.
Thank you for all you do for economic freedom and we look forward to fighting side-by-side with you in 2013.
Americans for Prosperity