Sunday, August 20, 2006

Robert Ricketts: Tax Policy and the Economy

For almost 100 years, there has been an ongoing debate about whether the wealthy should face higher tax rates than the poor and middle class? Who would have imagined that today we would be represented by a Congress that believes the wealthy should face lower tax rates than the middle class? Yet, by lowering the tax rate on income from wealth to 15%, that is exactly what this Congress has accomplished....

So the tax cuts have neither stimulated the economy nor increased government revenues. What have they done? They have caused the largest budget deficits in U.S. history. From a surplus of $236.2 billion in 2000, this Congress has taken us to a deficit of $318.3 billion in 2005 – a change of over $550 billion. The only thing these tax cuts have increased is the national debt.

These are obligations that we are leaving behind for the next generation of American taxpayers, for our children and grandchildren. This does not however mean that this irresponsibillity does not also have substantial effects on our current economy. This deficit is driving the value of the dollar down, and increasing the cost of oil and everything else we buy in the United States. Interest rates are being driven up, which will drive housing prices down. These increased costs are a form of tax – an Irresponsibility Tax imposed by our Congress.
Robert Ricketts is the Democratic candidate for TX CD-19. Nice graphics Robert, he is not quite the first to use Irresponsibility Tax but I would like to hear that a lot more.

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