Budget, Spending & Taxes

Budget, Spending & Taxes

There is no question that Washington D.C. has a spending problem, and I will continue to work towards reducing wasteful and unnecessary spending by the Federal Government.  The primary culprits of overextending the budget limits of the Federal Government are mandatory spending programs such as Medicaid, Medicare and Social Security.  Mandatory spending has risen 759 percent since 1956 and currently accounts for 58 percent of total federal spending.  These programs are in desperate need of reform and cannot continue on autopilot risking the future of the American economy.

 

As a fiscal conservative and strong believer in supply side economics, I supported the Bush tax cuts of 2001 and 2003.  These tax cuts have put taxpayer money back where it belongs, in the pockets of American workers.  While reducing taxes on Americans, the Bush tax cuts have also brought record revenue to the Federal Government, which has been used to reduce our national deficit.

 

According to the Joint Tax Committee, failing to extend the 2001 and 2003
tax cuts will mean that in 2011 alone, taxes will increase dramatically…

 

  • 31 million families with children will see an average tax increase of $1,025 because of the reduction in value of the child tax credit
  • Close to 30 million married couples will face an average tax increase of $686 resulting from the return of the marriage penalty
  • 91 million taxpayers will pay an average of $498 more because of the loss of the 10% tax bracket
  • 5.5 million taxpayers who were benefiting from the deduction for student loan interest
    and employer educational benefits will pay an average of $286 more in taxes
  • 2 million families who adopt a child will pay an average of $156 more in taxes
  • 28 million savers and investors will pay an average of $1,885 more in taxes because of the end of lower tax rates on long-term capital gains and dividends.  The burden will be especially high on the 8 million seniors whose average tax burden will increase by $2,540 as a result.