President Obama stated Wednesday that he was open to new ideas – good news considering the only options he has come up with both harm the economy. So here is an idea, although it is not new. In fact, at one time the President himself acknowledged it.
The best plan would be to extend tax cuts for everyone.
As one reporter pointed out in the press conference, President Obama extended all these tax cuts two years ago, so why shouldn’t he work with Congress to extend them again? If, as the President claims, we are better off economically than we were at that point, why would we cease implementing policies that have helped us?
Economists across the spectrum agree that raising taxes in a weak economy could have devastating effects. Even Obama acknowledged in a 2010 speech that the “consensus among people who know the economy best” is that raising taxes is one of two ways to damage the economy. Leaving more money with every pay check in the hands of individuals, families, and businesses is a proven way to spur economic growth. Regardless of the tax bracket one fits in, the principles are the same: lower taxes increase individuals’ incentives to work hard, make more money and invest. All actions that in turn create a better economy for all Americans.
The President should work with Congress to ensure all Americans are not hit with a tax increase in an economy that has a long way to go yet in recovery.
Raising taxes is not only bad for Americans and the economy; it also fails to address the government spending crisis. We must balance our budget by reducing spending. Congress has already made the tough choices by determining to cut $109 billion from the budget, now it just has to stay the course and make sure the cuts happen.
Congress has already made promises to rein in spending, and the President has promised to work with Congress and entertain ideas from both sides of the aisle. This lame-duck session is a golden opportunity for both to do the right thing and fulfill those promises. The only path forward to a better and more prosperous America depends on it.