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Tax Increases Really Hurt Growth and Jobs
Posted By Romina Boccia On November 18, 2013 @ 10:40 am In Capitol Hill,Economics,Front Page | Comments Disabled
Some lawmakers, led  by Senate Budget Committee chair Patty Murray (D–WA), are seeking to raise taxes in the budget conference to replace the modest spending reductions  referred to as sequestration. They say that spending cuts hurt growth and jobs.
If they are truly concerned about the economy and Americans’ opportunities, their approach is misguided for a number of reasons.
Based on new research  by Heritage economist Salim Furth, PhD, here are just three reasons why replacing sequestration spending cuts with tax increases is a really bad idea:
Congress can restore needed defense capabilities without breaching the Budget Control Act’s reasonable spending limits in the process. There are myriad government programs  where Congress can save money to allocate toward greater priorities.
In order to succeed, lawmakers should heed a few principles necessary for a good outcome . Raising taxes is not one of them.
Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2013/11/18/tax-increases-really-hurt-growth-jobs/
URLs in this post:
 Image: http://blog.heritage.org/wp-content/uploads/BL-obama-tax-hikes-sequester-comparison.jpg
 led: http://www.washingtonpost.com/politics/congress/house-senate-negotiators-report-little-progress-in-budget-talks-as-split-over-taxes-remains/2013/11/13/6d327b38-4c8a-11e3-bf60-c1ca136ae14a_story.html
 modest spending reductions: http://blog.heritage.org/2013/03/01/sequestration-much-larger-spending-cuts-needed-to-balance-the-budget/#.UoT1Mxqsh8E
 new research: http://www.heritage.org/research/reports/2013/11/america-s-austerity-tax-increases-and-deficit-reduction
 symposium: http://www.youtube.com/watch?v=bzYL8Fu3-Ss
 more than $3 trillion: http://www.heritage.org/research/reports/2013/10/leave-tax-reform-and-tax-increases-out-of-budget-conference
 limiting the size and scope of the government: http://www.heritage.org/research/reports/2005/03/the-impact-of-government-spending-on-economic-growth
 myriad government programs: http://www.heritage.org/research/reports/2013/08/tight-budget-congress-can-save-42-billion-by-eliminating-bad-government-programs
 cutting wasteful spending: http://blog.heritage.org/2013/02/04/on-fox-news-government-waste-is-just-the-tip-of-a-massive-federal-spending-iceberg
 fixing America’s growing $17 trillion debt: http://blog.heritage.org/2013/06/17/morning-bell-17-reasons-the-17-trillion-debt-is-still-a-big-deal
 principles necessary for a good outcome: http://www.heritage.org/research/reports/2013/11/principles-for-the-budget-conference
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