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Tuesday, April 15, 2008
Tim Walberg :: Townhall.com Columnist
Let's Get the Economy Moving Again
by Tim Walberg
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Will the Dems' health care Christmas Present to America be an improvement or detriment to our health care system?


There is little debate right now on Capitol Hill about whether the American economy is struggling. The real conversation in Washington, D.C. and in living rooms across the country is about how to get our economy moving again.

Essentially this debate boils down to one question: Should America promote economic growth and job creation or raise taxes to destroy jobs and economic opportunity?

Beginning this week, Republicans will make all House members decide which side of this debate they are on by forcing votes on a bill I introduced, the Tax Increase Prevention Act (H.R. 2734). House members will have to choose whether they support Speaker Pelosi’s budget proposal that, in total, is the single largest tax increase ever proposed in the history of the United States, a $3,000 per taxpayer tax increase.

With so much money already being wasted in Washington, I believe it is wrong for Congress to try and take more money out of the paychecks of hard-working Americans. My bill would make permanent the tax relief of 2001 and 2003, and stop tax increases on raising children, earning money, saving and investing, operating a small business, adopting a child, paying off college loans and even dying.

Consider the implications of the Democrats’ proposed $680 billion tax hike in 2011 alone:

Marginal income tax rates will increase as follows:

--35% bracket will increase by 13 percent
--33% bracket will increase by 9 percent
--28% bracket will increase by 11 percent
--25% bracket will increase by 10 percent
--10% bracket will increase by 50 percent

Capital gains rates for individuals will increase from 15% and 0% to 20% and 10%.

Restoration of the marriage penalty tax.

The child tax credit will be slashed 50 percent, raising taxes by $500 per child.

The death tax will go from 0% to 55%.

I have always held the conviction that American citizens should keep as much of their hard-earned money as possible. With Americans facing rising health care costs, high energy prices and economic instability, the absolute last thing families need is to be hit with a massive, job-killing tax increase.

Every week in my home state I meet with Michiganders who are working harder than ever before and at best breaking even. Michigan families and businesses have unfortunately felt first-hand the powerful, negative impact of tax increases. These working families’ wages have been slashed by higher taxes on income and on small businesses.

During Governor Jennifer Granholm’s Administration, Michigan has experienced job losses, declining personal incomes, diminishing home values, and the highest unemployment rate in the nation. By proposing a massive $3,000 per taxpayer tax increase, Democrats in this Congress are following the same failed blueprint that Governor Granholm used to drive our state economy into a ditch and destroy Michigan jobs.

Instead of working on tax hikes that ultimately make America less competitive, I believe Congress should stop this $683 billion money grab from taxpayers. Congress could better spend time establishing a commission to end and eliminate ineffective and inefficient government programs.

This week is just the beginning in a long battle over America’s economic future. By making tax relief permanent and continuing to grow our economy, Congress can go a long way to restore the trust of the American people, build a better, brighter future for our country — and avoid the economic suffering now felt in Michigan.

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About The Author

Tim Walberg is currently in his first term in the U.S. House of Representatives, serving Michigan’s Seventh District, which includes Branch, Eaton, Hillsdale, Jackson and Lenawee counties and parts of Calhoun and Washtenaw counties.

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Not surprised about taxes and congress
Perhaps if we could stop sending people to Washington who would enjoy making the masses into a bunch of serfs, we could see some improvement. The problem stems from the usual election talking points given by people who are controlled by special interest and big business. Does anyone really believe Pelosi has the population's best interest? She has Pelosi's best interest. The Dems would love to tank the country and blame it on conservatives, much like the rich elitists in foreign countries who keep their populations poor and blame the USA for it! STOP SENDING CAREER POLITICIANS TO WASHINGTON. One to two terms should be standard.

I find it ironic the very people the dems promise to help are the ones who ultimately get hurt or not helped at all.

Redlac
I think this is where he talks about spending:

From the article:

"Instead of working on tax hikes that ultimately make America less competitive, I believe Congress should stop this $683 billion money grab from taxpayers. Congress could better spend time establishing a commission to end and eliminate ineffective and inefficient government programs."

I know, another commission, another waste of time, but he did at least give it a mention. I am sure that he realizes the value of controlling spending and fixing the broken system under which Congress now operates.

All I know right now
is that I can not make enough money to break even. With stagflation on the rise, my costs for the mere basics: food, elec,gas, phone, mortage, insurance; keep going up with not enough coming in to cover these expenses. The dems keep saying to get elected that they had a plan to bring down gas prices; yet those gas prices have raised over $1.oo sence they took over. Higher gas prices mean higher costs for everything. Groceries always go up with the rise in gas prices but never come down when the gas prices come down. Ethanol, added to gas(as Hess did) reduces the milage I get, there by you need to buy more gas.Dont forget that there are local, state and federal taxes included in the cost at the pump.
Jobs are nowhere to be found because we have closed down our manufacturing base; sent those jobs over seas( maybe ill have to move out of the country just to find work) thanks to NAFTA, GATT,and tax and legal costs, not to mention government regulations (normally ecological); and lets not forget lower wage and benifit costs (thank you Unions for helping that out).
Tax cuts? Im all for them, but I am also inclinesd to see spending cuts, entitlement programs revamped so the tax dollars are wisely(oxymoron) spent; and a truly reduced government regulation when it hinders the whole economy from working smoothly. Seems like the real problem is too much government at all levels; 33% of all jobs in America today are at some level of govt.I just wont work for idiots.

Not another penny!
A tax increase during this time of economic turbulence is national suicide. Millions of producing Americans will slide down into the poverty and be forced to choose looting or mooching.
The vast majority who mooch will be falling into the awaiting arms of the socialist collective. My, my, what a great plan the criminals have here; destroy the national wealth so that you increase your constituency. Collectivist share so much in common with dope pushers.
I have a suggestion, how about we have a producer tax revolt, everyone gulch, and starve the federal Frankenstein. Force it to loosen its death grip on our money. Don’t feed the beast during its coming time of need and eventually it will be easy to throw these entrenched dope pushers out of office.

There is no
There is no death tax. There is an inheritance tax which Carnegie thought should be 100% so that it kept liquidity in assets and opportunity for all.
The inheritance tax affects a very small percentage of the population as a whole. Have a 10,000,000 estate, you should pay taxes. Are your children that worthless that they can't make money on their own?

We need to restore the balance
Redistribution of the wealth is the only way to save things right now. A 70% tax on passive income over $250,000, plus a war surcharge for incomes over $500K coupled with a subsidy for the creation of American manufacturing jobs, would do the trick.

The powers-that-be have destroyed America, and the only way to salvation is drastic surgery.

We're becoming Mexico Norte -- with a GINI score fast approaching 50. Either correct that imbalance, or accept full-fledged socialism.

All taxation is regressive
--
Government revenues derived from "income" taxes (i.e., direct federal taxes on wages, salaries, tips, and fees-for-services-rendered levied without apportionment and therefore in open criminal defiance of the U.S Constitution) are responsible for only a small percentage of all funds raped from the private (productive) sector of American society.

Understand that all the *OTHER* taxes - direct and indirect - impacting upon the "fat cats," the "big corporations," etc. - are bound to come out of the average schmo's pocket.

And always do so in the most regressive manner imaginable, "buried" in the prices of our housing, the services we need, the clothes we wear, the food we put on the table for our families.

Every "tax-the-rich" scheme floated by the Democrats (and their Republican partners-in-plunder) is nothing more than an incentive for "the rich" (chiefly the big corporations, their managers and stockholders) to raise the prices they charge for whatever they're selling.

Thus raising the costs that us end-consumers have to pay for that "whatever."

Excise taxes of all kinds get paid by the consumers, not the producers, the wholesalers, or the retailers.

So do the income taxes levied upon the producers (etcetera) and *their* employees.

Every cost of production and delivery has to be paid by the consumer.

Or else the providers of those goods and services can't make a profit.

Even if government taxes their profits, they've just got to make *MORE* profits.

And we're the schlumps who've got to ante up.

The real cost of the great government rip-off isn't reflected on your W-2 forms, people.

It's in everything, every service you buy.

It's not what you see (to paraphrase Bastiat) but what you *DON'T* see.

Unless you open your eyes.

--

Let's get the economy moving again!
Let's get rid of Republicans at the same time!
"The Tax Increase Prevention Act" - does that ever sound silly. Why do we need to raises taxes when we have Bernanke inflating?

Taxes/Spending
I connect taxes to spending - I don't separate them. Neither the GOP nor the Democrats have connected those two dots, and until they do, neither will resolve the economic issues that we are confronting. It's an illusion to support one and not the other. I know the heritage foundation well - and I know equally that the battle we face will be fought more on the spending front, than on the tax front, because unless we can deal with spending now - tax cuts will be doomed. Tax cuts would clearly benefit me, so I certainly would like them. But in and of themselves, they will not jump start the economy - which the author claims. The issue with the economy today, after all, is the fact that the fed induced inflation in housing generated unearned income totalling in the trillions, some of which was recycled into the economy. Those are the dollars that are gone. Income generated from tax cuts was but a small portion of what became the consumer led recovery. For decades we've have the GOP supporting tax cuts but not spending cuts. This has driven us into a chronic high deficit, while undermining the value of the dollar. Proposing one without the other is simply a continuation of these irresponsible positions. Tax cuts are popular - so the author takes the popular issue while avoiding what has been avoided for almost 30 years - spending cuts.

Fair?
The top 40% of taxpayers pay 99.4% of all income taxes? Wow, the other 60% can scrape together a whole 6/10ths of 1 whole percent--what a deal!


Garbage
Amazing how liberal suckers can fall for this garbage about only taxing the rich (as if working hard and being successful makes one evil) from the democrats hook like and sinker

Grumpy
Ouch... that hurt, right in the tuckus... I wouldn't take everything you read above at face value.

uwouldntknowtruthifitbityourass
"dems will raise taxes... on the ppl with the most money"

If the Bush tax cuts expire the 10% bracket will see a 50% increase. Spare us the cr@p about taxing the rich.

Demand the FAIRTAX!
It's time to do away with the IRS and Income Taxes altogether! Let's put the economy back on track the right way.

http://www.fairtax.org/

Go there and sign the petition tell your friends and family to do the same!





One last point bmadison2007
After we crushed Iraq's "army" (that's laughable) Iran came to us, and offered to negotiate a cease to all nuclear activities, funding terrorism, etc. They were so f'in scared, and rightfully so, that they were bending over for us. Rather than accept it, the Bush admin scorned them & since then, Iran has since realized what a big favor Bush did for them.

bmadison2007
that 1% accounts to hundreds of millions of dollars, that as a taxpayer, i have a right to protest. In my mind it is better spent in other arenas.

bmadison2007
on education, if you go to:
http://www.whitehouse.gov/omb/budget/fy2009/pdf/hist.pdf
section 4.1 Page 79, you will see where i referenced the numbers from.

As for your next point, I have never had nor will I ever have an argument against the war in Afghanistan. However, how you could link Iraq, despite all the evidence that has come out since the invasion: i.e. no WMD's, no link to terrorism (and you would have to understand that Osama & Saddam were ideological enemies, baathismm vs fundamentalism, to begin to understand how weak that argument is), faulty & manipulative intelligence introduced by Cheney & the Hawk faction (you can just google that yourself, it's been explained ad-nauseam) to the war on terrorism is beyond me.
In Iraq, we have instigated a civil war, where there wasn't one before (favorite reference Dr. Dahlia Wasfi),and been on watch for an ethnic cleansing that resulted in 1 million Iraqi deaths. All the while, increasing the overall strength of our terrorist enemies, check any ngo report on terrorism in the world today. The only good thing we did in Iraq was remove saddam, but since then we have been responsible for more deaths in these last 5 yrs than he was for his entire reign (p.s. you do know that not only did we arm him, but at one point held him & his regime as the gold standard of middle eastern/arab gov'ts. of course that was only when we were using iraq as a proxy state in the iraq-iran war). Sounds like freedom to me.

As for your last point I said growth as measured by GDP. My suggestion is you check your facts good sir.
I never fabricate, i might exaggerate.

Redlac
This article is about taxes, if you want an article about spending, just access the many that have already been written. Just because someone writes an article about cutting taxes, are you suggesting they aren't for cutting spending as well?? Here is a good resource on spending and what its doing to the country's future:

http://www.heritage.org/research/features/BudgetChartBook/i ndex.html

Here's what we need to do
Abolish the IRS

Abolish the Federal Reserve

End the Grand Christian War to Murder Muslims

Abolish all other unconstitutional federal agencies

And then we will have the economy kick-started.

What part of truth can't you handle?
ucanthandletruth: Hard to even start to spell out all the apparently made-up information you're putting in your post, but I'll begin by copying in one segment of what you wrote:

"While we have cut back on social spending (i.e. education, infrastructure, technological development) that is the lifeblood & foundation for future generations"

I'd love to know where you get your facts as some entitlement spending may have been cut, but overall, spending is at an all-time high.

Next, you state that "we have exponentially increased military spending at a time when the efficacy of war is in a constant state of decline"

This is just plain dumb on your part as the efficacy of war (if you're referring to Afghanistan/Iraq) would seem to be the fact that we've freed millions of people from tyranny while saving possibly thousands of U.S. lives if we had let terrorist states openly operate in opposition to freedom loving people in the U.S. and abroad. We stopped it and we continue to stop it, sounds like a much better plan to me than your plan which would be sticking our heads in the sand and hoping the problem just goes away. Besides, military spending is still only at 4% of GDP, and it was at 3% of GDP before the Iraq/Afghan war, big whoopee...its certainly not that spending that is hurting our economy.

One of the last goofy tidbits you say, that the economy has grown more under dems is just plain wrong. The largest growth of the economy was under Reagan, and we've had record grown under Bush, who had to start his presidency under a Clinton recession and then 9/11 which correlated to Clinton's failing to do anything about terorrim in his 8 years in office. I'd say Bush has done pretty darn good considering what he had to do just to get things on track again after Clinton.

I second this motion
This bill needs to pass.

Come now
In case you didn't get my point - tax cuts will go the way of the dinosaurs precisely because 40% of the people pay no taxes at all, and 50% pay less than 4%. They have no vested interest in tax cuts. And, your point on taxes as a % of income runs counter to the tax code, in which those in that bottom 75% who pay 16.5% should, in most cases, pay less tax than those above them. As far as the dems raising taxes, that is a counterproductive reality in the modern world as well. I can take or leave profits and income worldwide these days - and its much easier than it once was. Whether you like it or not - America's tax base has to compete with the tax bases of other countries.

That top 10% that pays 65% of the taxes has every ability to manipulate this. And increasingly do. The absurdity of most current economic thinking is, among other things, its refusal to take the seismic shifts in international banking, investment, communications, and trade that now take place in the world. When the US imports $2.25 trillion in goods, who do you think controls that money and where do you think they take their profits -and into what banks do you think those profits are sent? And which stock market do you invest in? And which money - the Euro or the dollar? The Fed is getting progressively weaker as well, as 5 years ago it could still dictate when the Euro was new, now the Euro bank chiefs ignore the fed and no longer follow along. Which is one reason the dollar continues to get weaker - no one supports it anymore.

If the democrats do what they say - wealth will flee - because it can flee - and those mythical tax revenues will never be what they'd hoped.

Wealth now has options - and national governments can do little about it. Which is the good news I imagine. Governments are beginning to compete for the wealthy.

So maybe what you ought to do is sit back and begin thinking about what it will take to keep wealth here - so you keep those tax dollars.

Redlac
It's not about what % of ppl pay what % of taxes. The top earners pay so much because they account for the vast majority of the wealth. the bottom earn scraps, so how do you expect them to pay taxes when they can barely afford to live? This is about what % each tax bracket is made to pay in relation to those around it. The top earners pay less % wise than those further down the food chain, that's the issue imo...

What?
These tax cuts are in place now and what have they done... nada. 200k + jobs lost in the last 6months, a record deficit, stagflation threatening ( stagnation of wages with inflation fyi), and all the while the ultrarich keep spending like a kid on a toys r us shopping spree. Our gov't, for the last 8 yrs, has been one of the worst run fiscal operations ever. While we have cut back on social spending (i.e. education, infrastructure, technological development) that is the lifeblood & foundation for future generations; we have exponentially increased military spending at a time when the efficacy of war is in a constant state of decline. We have borrowed to finance our operations (sounds eerily similar to the credit crisis) to the point where in the next 15 yes INTERST PAYMENTS ARE PROJECTED TO EAT UP 15% OF OUR BUDGET!!!!! Talk about an unbalance budget...
We don't need all these patch repairs to the tax system, nor do we need bs on how raising taxes will hurt the economy (because the economy - for the past 50 yrs - has grown more, gdp basis, under dems than repubs). What we need is a totally reformed tax system that reflects modern america.
It is a sad day when Cheney, who made 2.5 million last yr, and other richers like him pay less on a percentage basis (about 25%) than your average single adult making around 50k (32%). Especially when you consider that those on top account for the vast majority of the wealth in this country.
P.S. dems will raise taxes... on the ppl with the most money, like Mr. Walberg, so is it any wonder they fight so hard against it?

Frreebee's
Here's the problem. The top 1% of earners pay 34.27% of all income taxes, the top 5% pay 54.36% of all income taxes, the top 10% pay 65.84%, the top 25% pay 83.88%, and the top 50% pay 96.54% The bottom 50%? They pay a paltry 3.46% of all income taxes. Of these, 122 million Americans pay no federal income tax - not a red cent.

Bottom line - 25% of the American people pay 83.88% of all income taxes. The other 75% pay little or nothing.

Meaning - 75% of the people could care less whether or not the government cuts taxes any more. In fact, that 75% is far more concerned about all those entitlements - meaning, if it comes to tax cuts or entitlements, tax cuts in the future will go the way of the dinosaurs. And then, of course, the reason that 65% of the people so glibly are demanding health care insurance - as this should make clear, are those that pay little or nothing into the system. To them, it's all a big freebee. And, needless to say, that's why the author says nothing about cutting spending.

Thieves know they steal
Since when did thieves care about the consequences of their theft?
You must begin to realize this, this raising tax does not come about from the ignorance in Washington DC, but planned stealing of your labors by government.

This knowledge is basic and been known a long time.

“The war against illegal plunder has been fought since the beginning of the world. But how is... legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish this law without delay... If such a law is not abolished immediately it will spread, multiply and develop into a system.” —Frederic Bastiat

How to view the economy
If we look at its present state, just as an every day, plain vanilla taxpayers, home owner and law abiding citizen, we allow ourselves to think we must be smarter than all the people in the Congress who should know how hard raising taxes is on the citizenry.

I mean this really does not take some genius to see and understand.

“April 15 is the last day for filing income tax returns—a day that reminds us that taxpayers pay too much of their earnings to the Federal Government. And Americans will continue to pay too much money to the Federal Government until the Congress acts on our proposals to reduce tax rates across the board... While April 15 serves as a reminder, the people of the United States truly do not need to be reminded. They are victims of inflation, which pushes them into higher tax brackets. They are robbed daily of a better standard of living. They are discouraged from work and investment... Taxes are much too high to deal in half measures... The choice before us is clear. I strongly feel that the great majority of Americans believe that nothing would better encourage economic growth than leaving more money in the hands of the people who earn it. It’s time to stop stripping bare the productive citizens of America and funneling their hard-earned income into the Federal bureaucracy. Today is a day when the people reaffirm their commitment to our system by contributing a portion of their income to the Government. Americans have always been prepared to pay their fair share, but today they should make it clear to all elected officials that government has gone beyond its bounds and that the people will not tolerate the ever-increasing tax burden they have experienced in recent years.” —Ronald Reagan


What about Spending
What about the other side of the question? As usual, we hear about taxes, but not a peep on spending. We're into the 8th year of chronic deficits that exceed $500 b per year. Costs of entitlements are rising faster than revenue. Those tax cuts you want to keep didn't put a dent in spending - and neither did the president or the congress. Granted, given the reports say they added $200 B or so in revenue to the federal coffers, we'd be running deficits of $700 B, as opposed to the $500 B that we now run. And then, how about a dollar whose value is cratering because of the budget deficits in combination with our balance of payments deficits. And how do you explain the fact that even though the dollar lost 30% of its value in the last 5 years, making our exports 30% cheaper, our trade deficts are still pushing $700 B per year. Just what are you going to do about that?

Your demogoguery on taxes solves nothing. You know very well that if you keep these tax cuts, the deficits will continue to grow given entitlement spending, and the dollar will continue to lose value. Further, we'll continue to go ever deeper in debt to our good friends in Europe, Asia and China, who'll have to continue to finance that debt.

And then, also tell us how this will "get the economy moving" again - given how well it worked the last time. You knew, I knew, everyone with 1/2 a brain knew that the feds monetary policy created housing inflation that put trillion of unearned income in the hands of consumers - which is what the fed said was necessary to escape the market meltdown. It was called a consumer led recovery. Well that's gone - and here you are scrambling again because that short term fix crashed and burned.

Tax cuts without spending cuts don't work - get a clue.

Jimmy
Amen.

The Fair Tax would give Americans their freedom back to a great extent. Let me give the gov't money on MY TERMS, not their's.

Let's get the economy moving again
Pass the Fair Tax Plan proposed by H.R.25 and S.25. Repeal the 16th amendment.

Let's get the economy going again
Pass the Fair Tax Plan proposed by H.R.25 and S.25. Repeal the 16th amendment.
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