It is not often articles in the New York Times excite me, so you might imagine the unexpected pleasure I felt as I perused a story published Monday.
Splashed across the front page of the June 11, 2007 edition, the headline "States Finding Fiscal Surprise: A Cash Surplus" almost sprung off the page.
Let me give you two excerpts from the article:
"State lawmakers across the country, their coffers unexpectedly full of cash, have been handing out tax cuts, spending money on fixing roads, schools and public buildings, and socking something away for less fruitful years. Budget surpluses have largely stemmed from higher than expected tax collections…"
"More than 40 states have found themselves with more money than they planned… states are looking to give relief to taxpayers who have long been howling about property taxes, and to pay back areas that states have been robbing to balance previous budgets…"
This outstanding economic news has gone widely unreported, yet is vitally important to the future of our county.
Because tax relief passed by Congress in 2001 and 2003 is working, states are much more likely to take fiscally responsible moves and tighten their belts instead of hiking taxes. States that were once in recession are now brimming with tax revenue.
These pieces of highly successful legislation have provided workers, entrepreneurs and investors needed relief to get the American economy moving again.
The few states that are struggling, such as my home state of Michigan, have hope for a turnaround in the future because these tax cuts are creating jobs and leaving more money in the pockets of taxpayers.
Unfortunately, Democrats in Congress are choosing to ignore advancements made possible by the 2001 and 2003 tax cuts.
In their most recent budget bill, House Democrats sought to enact a $400 billion tax increase that will cripple current progress in our economy.
Should Democrats follow through on their budget promises, the American people will face the following:
A $500 per child tax increase
A 55% Death Tax
A 13% tax hike for many small businesses
A 33% tax hike on capital gains
A 164% tax hike on dividends
Five million low-income families who currently pay no income tax will be hit with a tax bill
A recent Heritage Foundation study revealed this plan would raise taxes by $3,019 for each person in my south-central Michigan district.
Additionally, the Heritage study revealed this tax increase would cause 2,272 job losses in south-central Michigan and cost my district’s economy $207,000,000.
Ultimately, 100% of Americans will feel the effects of this massive tax increase.
Republicans and Blue Dog Democrats in Congress must join together to ensure that the American economy is not crippled by a massive tax increase.
This is why this week I am introducing the Tax Increase Prevention Act, legislation that would make permanent tax relief passed in 2001 and 2003.
My bill simply takes away all the sunset provisions of the 2001 and 2003 tax relief packages that passed Congress and provides American families and job-creators the certainty to plan for the future.
If my bill becomes law, the American people will not see any of the tax increases Democrats are currently proposing on things like marriage, childbirth, adoption, earning money, saving money, paying college loans and dying.
By making tax cuts permanent and continuing to grow our economy, this Congress can go a long way in restoring the trust of the American people and build a better, brighter future for our country.