The Democrats promised to balance the budget by 2012. They said they will do this by finding "$900 billion in additional revenues."
Translation-TAX INCREASES!!
They would let the recent tax cuts expire in 2010. This means among other things bringing back the marriage penalty tax and cutting the child tax credit in half.
Democrats want you to believe that they intend to slow the growth in spending. They are using their usual deception with the term PAYGO. No matter how glib their wording, the reality is that PAYGO will become PAYMORE.
Little would be done to curb welfare and other entitlements which are soaring. The average family would see a tax increase of $2641 per year.
A family of four earning $50,000 would see taxes go up 132 percent. A single parent with two children earning $30,000 would see taxes raised 67 percent, according to Senate Minority Leader Mitch McConnell, if the president's tax relief is not made permanent.
Some Democrats blame it on the war. Total defense spending takes 4% of GDP. Defense spending as a percent of GDP is a tick away from its lowest point in 50 years.
Democrats are simply being Democrats. They're trying to get their hands on every penny they can to redistribute, mostly to non-producers.
To implement PAYGO, tax cuts must be offset by tax increases elsewhere or with cuts in entitlement spending, which would be helpful if those cuts applied to all entitlements.
Instead, Democrats stayed away from entitlements already in place, which have huge future costs.
Since the 2001-2003 tax cuts, revenues have soared and continue to do so. With revenues pouring in to the Treasury, no legitimate argument can be made for tax increases.
How about the economy? March 2007 produced another sizable jump in new jobs as did worker gains. When workers gain as they have for the last two years, the job market usually remains tight, signaling more good news ahead.
PAYGO may sound good, but it has the potential for much harm.
Hopefully Americans will tell congress to put a healthy economy and job creation ahead of partisan politics.
Mick McNesby is a former tax advisor, consultant and negotiator. He was a frequent guest on political talk shows in Atlantic City, N.J., discussing the benefits of the lower cost of government. He can be visited at http://conservative-politics-infofind.com
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