Taxes

While many in Washington are shortsightedly calling for another round of tax increases – on top of the $620 billion that the President pushed for and signed into law on January 2, 2013, prior to my arrival in Congress – I strongly believe that increasing taxes on the American people is the wrong approach.  In fact, taxes are too high, and raising taxes will only weigh down a fragile economy and slow down job creation efforts in the private sector.  This year, the government is projected to collect $2.7 trillion in tax revenue – the most revenue in American history.  So our deficits are not the result of insufficient taxes.

In addition, we know that the revenue gained from tax increases is never actually dedicated to deficit reduction.  Instead, tax increases are always used to finance more government, and always used as an excuse to not reform government.  The bottom line is that tax increases are a lousy deficit reduction strategy.

Rather than enact tax increases as a way to finance unprecedented levels of government spending, I believe we need to focus on living within a budget, setting funding priorities, and reforming the tax code in a manner that actually promotes economic growth and job creation.  Our current tax code is burdened by its massive complexity and has proven to be inefficient, wasteful, and distorting of economic activity.  We should work to broaden the tax base, get serious about simplifying and closing tax loopholes, and lower and consolidate marginal rates.  A simplified tax code that incentivizes work, saving, and investment will enable American businesses to better compete and provide much needed tax relief to American families.

If we want to maintain the most vibrant, dynamic economy in the world, it is essential that we combine this pro-growth approach to tax reform with the capacity to control government spending.  Otherwise, we face a future where our massive debt obligations and dramatically higher taxes will limit the potential of the American people.