The differences between America's two major political parties are never clearer than they are on Tax Day. As the deadline passes for completing the complicated forms required to turn over your hard-earned money to the federal government, it is worth examining those differences, and what they mean for our nation's future.
Republicans believe that keeping taxes low and letting you keep more of your own money is good sense for your pocketbook and the American economy. We believe the federal government should make paying the taxes you owe as easy as possible. We believe that the best way to balance the budget is to reduce spending and grow the economy, not to take even more money from the American people.
In the four months since Democrats took the majority in Congress, they have clearly laid out a different view on taxes. The budget which passed the House last month is a blueprint for the largest tax increase in American history. While they have not come right out and said so, it appears Democrats plan to bring back the marriage penalty and the estate tax, end the child tax credit, eliminate the ten percent tax bracket, and raise tax rates on millions of Americans. And to help collect these untold billions of dollars in new taxes, they are pursuing new schemes to make paying your tax bill even more onerous.
The tax relief that Republicans passed in 2001 and 2003 is working. Before the 2003 tax cuts, we were losing an average of 100,000 jobs per month, average GDP growth was 1.1 percent, and unemployment was 6.1 percent. Since then, we've added 7.6 million new jobs (an average of 170,000 per month), average GDP growth has been 3.5 percent (higher than almost all of the industrialized world), and unemployment has fallen to 4.4 percent.
Republicans doubled the child tax credit to $1,000 per child. Under the Democrats' budget, in 2011 the credit will revert to $500 per child - a tax increase of $500 per child for American families. The Democrats' budget will more than double the top tax rate on dividends and push the top rate on capital gains back up to 20 percent, even though - according to the Treasury Department - 28 million families saved an average of almost $1,000 each on their 2005 taxes as a result of the current lower rates. [In 2003, Republicans also created a zero percent tax rate on dividends and capital gains for families in the lowest two tax brackets. This provides a powerful incentive for those families to save and invest for the future - an incentive Democrats are not planning to continue.
Congressman McCrery has concentrated his energies on producing fundamental tax reform, economic growth and making health care more available and affordable.
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