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Washington, D.C. - Mid-April has historically caused a certain dread in the lives of all taxpaying individuals. Paying taxes, so the saying goes, is the price we pay for freedom. But it’s still hard to give our hard-earned money away to the government every year.
In recent years, tax day has been a bit easier to face thanks to pro-growth policies that have allowed all of us to keep more money in our pockets. Let’s take a look at this year alone. In 2007, Americans will receive an average refund of $2,394, up from $2,314 in 2006. Additionally, the average federal tax rate for a family of four earning the median income has been reduced to its lowest point since the 1960’s.
The bad news is that this past week, as millions of Americans lined up at the post office to mail in their
2006 income tax returns, the majority in Washington was busy working on a federal budget blueprint to eliminate the tax relief that America’s families, seniors and businesses have benefited from over the past couple of years.
The numbers speak for themselves. Tax cuts have fueled five uninterrupted years of economic growth; more than
7.2 million jobs have been created since August 2003; and our national employment rate at 4.5 percent, is below the national average of each of the past four decades. While Ohio’s economy has lagged behind the national economy, it, too, is finally beginning to show signs of awakening.
The federal tax code is nearly nine times longer than the Holy Bible. But, tucked within its many volumes are historic and significant pro-growth provisions enacted by the 107th and 108th Congresses. These provisions have put more money in the pockets of hard-working Americans. Some examples include reducing marriage penalties in the standard deduction and 15 percent rate bracket; lowering the tax rate on capital gains and dividend income to 15 percent; increasing the child tax credit to $1000; and increasing the child and dependent care tax credit. The bottom line is pro-growth policies help -- not penalize -- married couples, small businesses and families.
Unfortunately, these historic provisions and others will be eliminated if the new majority is successful in passing the largest tax increase in American history. And make no mistake about it -- we will all feel it in our pocketbooks.
If these tax cuts are allowed to expire, 115 million taxpayers would see a $1,716 increase in their tax bill. And Ohioans may be hammered even harder.
According to Americans for Tax Reform, Ohioans would experience an average tax increase of $2,716.07 if the proposed House of Representatives’ budget passes.
Residents of Connecticut would see an increase of more than $4,000!
What is more, the Wall Street Journal recently warned that a "tax increase of this magnitude could well lead to an economic recession…" If this budget is allowed to pass, the impact on Ohioans, and all Americans, will be significant. If we eliminate the tax relief that has fueled our economy, we will all – literally – pay for it.
As your Representative in Congress, I will continue to vote against any tax and spend policies that stand in the way of our nation’s path to economic prosperity.
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