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President Obama and House Speaker John Boehner are currently negotiating a deficit reduction deal to stop the sequester “cuts.” The main fight is over Obama’s proposal to raise federal income taxes on Americans making over $250,000 a year. While Boehner claims he is opposed to raising the top two income tax brackets, some worry that he will accept a bad tax-hiking deal in order to stop the sequester.
Raising tax rates should not be an option. We are facing a $1 trillion deficit in 2013 because Washington spends too much money, not taxes too little.
Take a look at these spending facts:
The federal government spends roughly $6.85 million per minute.
That adds up to $400 million every hour.
And $10.5 billion every single day.
Obama’s proposed tax hikes will not balance the budget.
According to Congressional Budget Office, Obama’s tax hikes will raise $42 billion in revenue in 2013. That’s enough to fund the government for a couple of days and reduce the deficit by roughly 3.5 percent next year. But since higher taxes further discourage production and alter behavior, these tax hikes may not generate that much revenue.
It’s a shame that some Republicans are caving and considering raising taxes. This will only hurt economic growth and prolong our fiscal woes. The solution is to reduce the deficit is to significantly cut spending—not increase taxes.