While traveling the 8th District and listening to fellow Hoosiers during my first term in Congress, I have reached the conclusion that many constituents do not believe they are getting value for the tax dollars that come out of their paychecks and are sent to Washington, D.C. Furthermore, the taxes collected by the federal government have not gone toward paying down our $16 trillion debt, but to fund more spending and an ever-growing and more intrusive federal government.
The bottom line is this — hardworking Hoosiers and small businesses should not be asked to send more money to Washington, D.C., just to pay for bigger government and increases in spending.
This was the case in 1982. President Reagan agreed to a package that would cut spending three dollars for every one dollar increase in taxes. The reality was the federal government cut less than 27 cents for every one dollar increase in taxes. When leaving office, President Reagan famously joked that he was still waiting on the three dollars in spending reductions. Thirty years later we’re still waiting and, ironically, having the same conversation.
Today, we are hearing similar promises from liberals in Washington, D.C. This much is clear; the president’s plan to raise taxes would negatively affect hard-working taxpayers, small businesses and job creators. It is a slippery slope that ignores fundamental reforms to pay down our national debt. It is a path that leads to more spending, more government and more taxes. I’m afraid the end result would be the same as 1982.
During these fiscal cliff negotiations, we need to discuss comprehensive tax reform and we should focus on spending cuts and the long-term drivers of our national debt.
In addition, we must keep in mind the engines that drive our economy — hard-working Americans and small businesses.
These themes were echoed in a recent Gallup survey released on Nov. 15 that showed 88 percent of respondents state the need to “take major steps to ensure the long-term stability of Social Security and Medicare” and 70 percent saying we should “simplify the tax code to lower rates and eliminate deductions and loopholes.”
During times of crises, the American people have always come together to ensure our nation moves forward in the right direction. This is one of those times.
We must not make the American peoples’ current economic challenges worse by increasing taxes on hard-working families and small businesses. Instead, we ought to pursue fundamental reform of the tax code in order to spur economic growth and increase revenues to the Treasury by providing incentives to create jobs and put Americans back to work.
In an address to Congress in January 1963, President Kennedy understood this simple truth by stating, “Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased — not a reduced — flow of revenues to the federal government.”
Over the past 17 years, 65 percent of new jobs were created by small businesses. These same small businesses use their individual tax returns to report their earnings. According to the National Federation of Independent Businesses, “75 percent of small businesses are organized as pass-through entities meaning they pay taxes on their business income at the individual rate.”
What is the result of increasing taxes on small businesses? If the president gets his way and taxes increase on Jan. 1, 2013, the direct result will be more than 700,000 jobs lost, according to a report released by the accounting firm, Ernst & Young.
The currently scheduled tax increase will hit nearly one million small businesses according to the Joint Committee on Taxation. The amount of revenue collected next year from this tax increase would only fund the federal government for approximately eight days. Furthermore, the cumulative revenue collected over the next decade from this higher tax rate will be less than the annual deficits incurred under President Obama during each of the past four years.
During these negotiations to avoid the fiscal cliff, we need to keep in mind that the American people deserve value for their tax dollar. And, with history as a lesson, we need to prevent this nation from going down the slippery slope of bigger government that breaks the promise of spending cuts, as was the case in 1982.
Rep. Larry Bucshon will begin his second term in Congress in January. He is a resident of Newburgh.
Flashpoint
FLASHPOINT: Americans deserve more value for their tax dollars
- Flashpoint
-
-
FLASHPOINT: Storm chasers must heed warnings, remember why we chase storms
The tragic death of noted weather researcher and former Discovery Channel storm chaser Tim Samaras has shaken all of us in the meteorological community.
-
FLASHPOINT: Humane Society does not merit IRS targeting either
Rep. Blaine Leutkemeyer is right that the IRS should not target any charitable organization solely on the basis of its ideology. Yet that’s exactly what he’s asking the IRS to do in his factually unfounded attacks on The Humane Society of the United States, the nation’s largest animal welfare organization and one that has the highest marks from the top charity watchdog organizations.
-
FLASHPOINT: A crisis at the NLRB
Most people in Indiana don’t even know what the National Labor Relations Board is. Well, why should they?
-
FLASHPOINT: Legislative session reflected Hoosier priorities
The 2013 session of the Indiana General Assembly came to an end just a few weeks ago with the final passage of our state’s next two-year budget.
-
FLASHPOINT: A legislative session of missed opportunities
Given the nature of politicians, grand claims of accomplishments and overblown rhetoric about “historic” efforts are to be expected at the close of any legislative session.
-
FLASHPOINT: Again in 2013 General Assembly, middle class generally ignored
Last year, the people of Indiana entrusted the Republican Party with some of their most precious possessions.
-
FLASHPOINT: Indiana lawmakers reinforced school safety mechanisms
Nothing is more important to me than the safety of my children. Every parent has felt that instant, apprehensive rush when their child plays too close to the street or falls down while playing soccer and it is our responsibility as parents to implement every safety mechanism we can muster to protect our kids.
-
FLASHPOINT: Lessons from the legacy media — get it right, first
Enough mistakes and maybe we’ll learn: When in doubt, leave it out.
-
FLASHPOINT: Hoosiers got steady hand in recent session
As the General Assembly began its work last November, as Speaker of the House, I pledged a renewed spirit of bipartisanship with legislators working together to solve our state’s most pressing challenges. As this year’s legislative session concludes, representatives from throughout the state — Republican and Democrat — have joined together to address those issues at the forefront of Hoosier minds: maintaining our state’s fiscal integrity, spurring job creation and expanding education opportunities for every Hoosier family.
-
FLASHPOINT: Time has arrived for overhaul of TV news
Former FCC Chairman Alfred Sikes gave an address in 1992 in which he claimed television news was too superficial and too focused on visuals.
-
FLASHPOINT: Fiscal cliff, Obamacare have already raised taxes enough
Our history is rich with stories of people who have immigrated to the United States for a chance at the American Dream. The American Dream, in its truest form, is the opportunity to achieve success by working hard and playing by the rules; to make it on your own and to say, “I earned this.”
-
FLASHPOINT: Expanding Medicaid coverage makes sense for Indiana
Since last summer’s U.S. Supreme Court’s ruling on the Affordable Care Act effectively gave states the option to expand Medicaid, policymakers across the country have debated if and how to extend health programs to millions of uninsured Americans.
-
FLASHPOINT: Improve public education, stop experimenting with it
In January, the four of us who serve as the Democrats on the House Education Committee outlined our hopes for the 2013 session of the Indiana General Assembly, particularly in joining with Superintendent of Public Instruction Glenda Ritz to offer common sense solutions to improve the quality of education for our children. With the halfway point of this session past us, we remain optimistic that positive steps can be taken … but that optimism is tempered by the reality that education policies are being directed by a legislative majority that has a radically different agenda.
-
Healthcare law anniversary no reason for celebration
March 23 marked three years since the Patient Protection and Affordable Care Act was signed into law, yet this is not an anniversary that deserves celebration.
-
FLASHPOINT: Defending state’s authority is attorney general’s obligation
The law of the land recognizes the authority of states to license marriage.
-
FLASHPOINT: Stability key for state’s future
Hoosiers have the unique luxury of being the fiscal envy of the nation due to the sound fiscal policies of the last eight years.
-
FLASHPOINT: House budget offers Medicaid solution for Indiana
This week, my U.S. House Budget Committee colleagues and I introduced a federal budget resolution for fiscal year 2014. Our budget is a responsible plan that stops spending money and balances in 10 years — largely through making key reforms to drivers of our debt like Medicare, Medicaid and Social Security.
-
FLASHPOINT: Problem gambling in Indiana: A new understanding of community concern
The week of March 3 was designated as National Problem Gambling Awareness Week.
-
FLASHPOINT: Eastern time in Indiana defies common sense
Nobody complains more than Hoosiers about changing their clocks. And there’s a valid reason — daylight-savings time in Indiana’s Eastern Time Zone is painful.
-
Praying for civil resolution to debate over gun control
Guns are lively ammunition for passionate debate these days.
-
FLASHPOINT: It’s not too late to expand health services
This week, state leaders euthanized the biggest, boldest Hoosier jobs proposal of the 2013 session of the Indiana General Assembly.
-
FLASHPOINT: You can’t go back again — and that’s OK
Our progressive colleagues have been telling us for years that the 1950s were a horrid time.
-
FLASHPOINT: The fierce urgency of now — nation needs to protect youth
The alcohol-fueled alleged serial rape of a 16-year-old Ohio girl by two of her similarly impaired classmates — not to mention the drunken videotaped commentary of others — points yet again to the imperative that adult America renews its commitment to address as a true national community those issues that most threaten the health, safety and forward development of youth.
-
FLASHPOINT: A pastor speaks out against Sullivan’s ‘traditional prom’
I am a pastor in Sullivan, Ind., and I am outraged.
Recently, two young students applied to walk the Grand March together in the school prom in Sullivan. -
FLASHPOINT: 0wning firearms is a First Amendment exercise, too
Following the hysteria generated by gun prohibitionists in the wake of the Sandy Hook tragedy, a nationwide rush on gun stores began as citizens bought semiautomatic modern sporting rifles, handguns and ammunition, in effect “making a political statement” about proposals to ban such firearms.
-
FLASHPOINT: Maintaining the priority
Recently a newspaper article has been written about a change in the by-laws of the Indiana High School Athletic Association which speaks directly to attempted undue influence exerted upon students below the level of grade nine and their parents.
-
FLASHPOINT: The fairness of marriage
What is the current Indiana law concerning marriage? Our state defines marriage in a singular way — between a man and a woman.
-
FLASHPOINT: We ask state legislators to abide by their oath of office
All of us relish giving unsolicited advice to our elected representatives.
-
FLASHPOINT: Mentoring is having major impact on public education
While managing local utility services, Mike Martin found a new way to energize his community, and students are starting to benefit.
-
FLASHPOINT: Common Core standards should be common sense
Years ago, when state officials and education experts came together to create new model standards for schools, they probably never expected it to be controversial.
- More Flashpoint Headlines
-
FLASHPOINT: Storm chasers must heed warnings, remember why we chase storms
Tiger on Sergio: 'It's Time to Move On'
Robot Action Connected to Human Thought
Rain Damages Brazil Soccer Stadium
NYC 911 Call Lasts for 8 Hours
Obama: US Has Helped Syrian Rebels
RAW: NSA Director Says 50 Plots Foiled
California Cops Cruise on Stand-up Paddle Patrol
Falling Cable Hurts 10 NASCAR Fans
Raw: 100K Protesters Flood Brazilian Streets
Afghan Forces Take Afghanistan Security Lead
Raw: First Lady, Daughters Enjoy Irish Sights
Obama: NSA Secret Data Gathering 'Transparent'
Transgender Candidate Running in NYC
Ex-NFL Star Chad Johnson Out of Jail
Man Who Disrupted Flight Ranted About CIA
Feds: 7-Eleven Stores Exploited Immigrants
Oklahoma City Thunder Players Tour Moore
Today in History June 18
Iran's Rowhani Urges 'Path of Moderation'
Boeing, Airbus Battle for Sales Supremacy
Inside Kim Kardashian's Premature Labor
Raw: Huge Fire Near Yosemite National Park
Paige Butcher Scorches on Hawaii Beach
Video: worst way to load cargo onto a plane
Never-before-seen footage of '08 Times Square bomber
WATCH IT: Lil Wayne tramples American flag
Mariah Carey Looks Beautiful in a Tiny Cut-Out Swimsuit
Out of Control Boat Throws Passengers Overboard
See Lindsay Lohan in Rehab
Sofia Vergara Posts Perky Backside Pic in Thong
Gaga Ditches Her Crazy Couture
Caught on Tape: Teacher Accused of Beating Autistic Child
"Stay Classy" Campaign Aims to Curb Binge Drinking
Sesame Street Tackling Tough Topic Parents in Jail
Miss Utah Fumbles Interview Question
Deranged man claims Newark-bound flight was poisoned
Cameron Diaz and Kate Upton Show Off Their Amazing Bikini Bodies
NBA FINALS: Spurs Win Game 5, Lead Series
