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  • Five Good Reasons to Prevent Taxmageddon

    On January 1, 2013, the American people will be hit with the biggest tax hike in history. It’s known as “Taxmageddon,” and it will bring $494 billion in higher taxes resulting from tax policies expiring in seven different categories, on top of new Obamacare tax hikes taking effect. In a new paper, Heritage’s J.D. Foster gives five good reasons for Congress to take action to prevent Taxmageddon before it hits.

    1. Families and small businesses should not be threatened by their own government with a devastating tax hike.
    2. A massive tax hike would obviously devastate the economy in 2013 and beyond, but the uncertainty about how, when, and even whether Congress will prevent Taxmageddon is already adding to the large cloud of uncertainties hanging over the economy, threatening to slow job growth even further.
    3. Congress has no excuse for threatening families and the economy with this tax hike with the entire summer legislative schedule wide open for business.
    4. Many Members of Congress of both parties agree with President Obama on the need for fundamental tax reform. Allowing Taxmageddon to go into effect would raise tax rates while increasing the tax on saving and investment—the opposite of tax reform’s results. Even though positive reforms are extremely unlikely in 2012, Congress can prevent a severe case of sound policy backsliding and create more opportunities for exploring positive options for tax reform in the balance of the year by preventing Taxmageddon quickly.
    5. Elections are referendums on past decisions and on the future direction of the country. Voters should be able to judge performance of their Members on more than just vague assurances. Those favoring raising taxes should have the opportunity to vote their beliefs while challengers announce their fidelity to higher taxes, and likewise for those favoring low taxes and limited government. Citizens can vote their beliefs based on solid information.

    Read more of Foster’s paper, Preventing Taxmageddon Is Congress’s Summer Job, at Heritage.org.

    Posted in Economics [slideshow_deploy]

    6 Responses to Five Good Reasons to Prevent Taxmageddon

    1. Bobbie says:

      Five excellent reasons that still begs the question word for word, why he is so insistent to punish by abusive force, needless costs on the people that he and his administration and all their friends in areas unconstitutional and severely non productive to America are overpaid with absolutely no worth to show? WHY? Why he looks to anything no matter how pathetic, that'll make himself (and his ilk) a buck or trillions!?
      He and his like minded of many, are untrustworthy, failures in stewardship and work or not, both without common American principle.

    2. Guest says:

      Mike,

      Isn't this all a bit disingenuous? Bush created the 10 year expiration date. By doing so, he created a "temporary" tax cut. It was a terrible idea at the time, as evidenced by skyrocketing national debt and poor economic performance. Obama extended Bush's terrible idea, so he deserves that blame.

      Shouldn't we allow this bad policy to expire? The grown-up approach has to be BOTH tax increases and significant cuts in federal spending. And I mean all federal spending (no, bloated defense is not sacred).

      As a nation, we need to embrace sacrifice. Pay more in taxes AND get rid of wasteful federal spending.

      The fact that our "leaders" on both sides are clinging intractably to their own ideological positions rather than doing what is right for our country should make every American's blood boil.

      Heritage should be battling the current partisan stupidity rather than fostering it.

      • Bobbie says:

        How does that make sense? You want tax increasing and significant cuts in federal spending? Why wouldn't the significant cuts in spending decrease taxing? As long as there are employed people getting tax exemptions, how about taking those exemptions away? It's about time and only fair Americans show their patriotism by paying their share of American taxes no one else is exempt from…

    3. guest says:

      So apparently you don't post comments that disagree with you. That is sad.

    4. Michael Miller says:

      You want to see the economy tank? Wait until the tax cuts expire. You haven't seen anything yet.

    5. Blair Franconia, NH says:

      Obama wants Taxmageddon.

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