Washington, Oct 18 -

The latest reports on the U.S. economy continue to provide welcome news to the American people. Wages are up, falling gasoline prices are fueling a stronger economy, and the Dow Jones Industrial Average reached 12,000 for the first time today. Here’s more good news from the Associated Press:

“Consumer prices, helped by big declines in gasoline and other energy products, fell in September by the largest amount in 10 months.”

“The Labor Department reported that the Consumer Price Index dipped by 0.5 percent last month, which was better than the 0.3 percent decline that Wall Street had been expecting. It was the biggest decline since a 0.7 percent fall in November of last year and reflected a sizable 7.2 percent drop in energy prices.”

But the strong economy won’t continue if Capitol Hill Democrats raise taxes on working families. Rep. Charlie Rangel (D-NY) – the Democrats’ point man on tax policy – has already said there’s “no question” that Democrats will make Americans dig deeper into their wallets and pay more taxes, saying “everything has to be on the table.” Rangel even said he “cannot think of one” of President Bush’s first-term tax cuts that merit renewal.

In an interview on the Fox News morning show “Fox & Friends” today, House Majority Leader John Boehner (R-OH) made clear that Republicans oppose the tax hike agenda Capitol Hill Democrats have been touting:

“The [debate between Republicans and Democrats this fall is] about choices. Choices about who is going to raise your taxes, who is going to lower your taxes. The fact is we've lowered taxes 12 consecutive years in a row that we’ve been the majority. Charlie Rangel, my good friend, who doesn't live far from here has already said that there’s not one Bush tax cut that he thinks ought to be extended. Code word, we're going to raise your taxes.”

When Rangel and his Democrat friends say they won’t renew even one of President Bush’s tax cuts, just what does that mean? Without permanent tax relief, millions of Americans will see their taxes go up by billions of dollars in 2011.

A Family of Four with Two Children with $50k in annual income will see an increase of $2,092 increase in their tax bill, a 132 percent hike. Moreover, the Democrats’ plan to raise taxes across-the-board will hit millions of Americans. Here’s how:

• 115 million taxpayers will see their tax bill increase by $1,716 each year;
• 84 million women will see their tax bill increase by $1,970 annually;
• 48 million married couples will see their tax bill increase by $2,726 each year;
• 42 million families with children will see their tax bill increase by $2,084 annually;
• 12 million single women with children will see their tax bill increase by $1,062 each year;
• 17 million seniors will see their tax bill increase by $2,034 annually;
• 26 million small business owners will see their tax bill increase by $3,637 each year.

A recent editorial in the Wall Street Journal notes the key factor in the creation of 6.6 million new American jobs over the past three years -- tax relief:

“This boom in employment started in August of 2003, roughly coincident with the economy's growth acceleration in the wake of the Bush Administration's 2003 tax cuts on dividends, capital gains and in the top marginal income rate on the highest earners.”

When it comes to providing tax relief and spending taxpayer dollars wisely, there is a clear choice between Republicans and Capitol Hill Democrats.

POSTED BY THE MAJORITY LEADER'S PRESS OFFICE | PERMALINK