Democrats are pushing a plan for a “tax trigger” that would trigger automatic tax increases if Washington politicians (like themselves) keep spending too much. The Democrats’ “tax trigger” scheme would create more uncertainty and make it even harder for small businesses to create new jobs.
President Obama first suggested the “tax trigger” idea in the speech where he outlined what the Weekly Standard termed his “phantom budget.” The president proposed a so-called “debt failsafe trigger” that would impose “cuts” to “spending through the tax code” – better known as tax hikes – if Washington doesn’t get its fiscal house in order by 2014 (not today; more punting).
Brian Darling of the Heritage Foundation and Dan Mitchell of the Cato Institute say the “tax trigger”:
- Gives Unelected Bureaucrats the Power to Raise Taxes on Families & Small Businesses. “The trigger would remove a specific vote of Congress for the tax changes and would give unelected bureaucrats in the Obama Administration the power to raise taxes. This is a terrible idea, because it will make it easy for politicians to pass tax increases then blame unelected bureaucrats for the decision.” (The Debt Failsafe Trigger Danger, Brian Darling, 4/23/11)
- “Punishes the American people with higher taxes if politicians overspend.” “If politicians in Washington spend too much and cause more red ink, which happens on a routine basis, Obama wants a provision that automatically would raise taxes on the American people.” (Obama’s Tax Increase Trigger: Punishing Taxpayers with Automatic Tax Hikes When Politicians Overspend, Dan Mitchell, 4/13/11)
And remember, these automatic tax hikes would be triggered by the very same spending binge Democrats enlisted an “army of lobbyists” to protect.
Speaker Boehner repeated today that tax hikes are “off the table” because “raising taxes will hurt job creation.” That’s why Republicans have taken a new approach and passed a jobs budget that makes $6.2 trillion in real spending cuts, spurs private-sector job growth, and puts us on a path to pay down our debt. Republicans are also standing firm against Democratic calls for increasing the national debt limit without meaningful spending cuts and budget reforms.
From the $1.5 trillion tax hike in the president’s budget to the attempt by the EPA to impose a backdoor job-crushing national energy tax to their trigger for job-crushing tax hikes, Democrats think the problem is they don’t have enough money to spend. They’re wrong. Washington needs to spend less, not find new ways to raise taxes on families and small businesses.