Saturday, December 11, 2010

Jim DeMint: Why I Oppose the Tax Deal

This is a difficult one for the Conservative Republicans for two reasons: 1. they are currently in the minority of both Houses and have a sitting Democrat President, so they have to negotiate the best deal possible; and 2. the MSM will use the talking points of the Democrats to blame the Republicans for the tax increase that the Democrats want, if the bill does not pass.

Republicans want a simple bill that extends the Bush tax cuts and provides some additional, paid for, unemployment coverage for those out of work. Granted that many economists, and Republicans, believe that any extension of benefits will perpetuate the current problem.

The Dems have seen this bill as their "Christmas Tree" and are tacking on earmarks by the dozens. Jim DeMint, a Tea Party favorite, sees this bill as a continuation of business as usual for Congress and the Democrats, and will refuse to support the bill.

Too bad we don't have a majority of Jim DeMints in Washington D.C.

This bill does much more than simply extend tax rates.

For starters, it includes approximately $200 billion in new deficit spending and stimulus gimmicks. That’s a lot of money that will have to be borrowed from China and repaid by our children and grandchildren. If we’re going to increase spending on new programs, we must reduce other spending to pay for it.

The bill also only extends rates for two years. We don’t have a temporary economy so we shouldn’t have temporary tax rates. Individuals and businesses make decisions looking at the long-term and we’re not going to create jobs without giving people certainty as to what their taxes will be in future.

The bill also fails to extend all of the tax rates. It actually increases the death tax from its current rate of zero percent all the way up to 35 percent. One economic study shows that this tax increase alone will kill over 800,000 jobs over the next ten years.

Finally, the bill now includes dozens of earmarks for special interests, including ethanol subsidies, tax breaks for film and television producers, give aways for Puerto Rican rum manufacturers, favors for auto racing track owners, and a hand out for businesses in American Samoa.The President called Republicans “hostage takers” this week but he should be pointing his figure squarely at himself. We’ve known for years that these tax rates were going to expire but he did nothing about it until the last minute. Now Americans are being told they have to accept hundreds of billions in new spending and stimulus gimmicks, an increase the death tax, and a bunch of unnecessary earmarks or their taxes will go up.

Read full DeMint letter here.

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