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| ***[U.S. Representative Joe Barton]{.smallcaps}***                    |
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| **Barton's Weekly Column**                                            |
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| 2109 Rayburn House Office Building - Washington, DC 20515 -           |
| 202.225.2002                                                          |
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| Contact: Karen Modlin - Karen.Modlin@mail.house.gov                   |
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Wednesday, April 04, 2007

***Tax Increases Are Not the Answer***

*by*

***Congressman Joe Barton***

 

Tax time is fast approaching. Though I've never heard anyone say they
find paying their taxes "fun," for many Americans this annual exercise
has become a little easier ever since the 2001 tax relief was enacted.
These tax cuts reduced marginal income tax rates, created a new 10%
income tax bracket, provided marriage tax penalty relief, increased the
child tax credit, and increased the alternative minimum tax (AMT)
exemption.

On March 29, just as many Americans were focusing their attention on the
IRS, the U.S. House of Representatives passed the Democrat-sponsored FY
2008 federal budget by the narrow margin of 216-210. At a time when
Congress should be even more aware of the need to alleviate the tax
burden placed on Americans, this budget sets the stage for the largest
tax increase in American history.

I joined 209 of my colleagues in voting against this budget because I
believe it is unacceptable to strip the tax relief upon which many
Americans have come to rely. Under the budget, the 2001 tax cuts will
expire beginning in 2011, causing unacceptable tax hikes on American
families. For example, a family of four making \$50,000 today (which
would be an estimated \$56,300 in 2011 money) would see their tax bill
increase from \$1,583 to \$3,675. That's an additional \$2,092 that the
family will be forced to pay the federal government rather than use to
cover other expenses. Families who have benefited from the child tax
credit would see their savings reduced from \$1,000 to \$500 per year
beginning in 2011. Those whose income allows them to be taxed under the
low 10 percent tax bracket would begin paying taxes at the 15 percent
rate. Under the Democrat budget, the 10 percent bracket would disappear.
As we get closer and closer to 2011, I will be working with my
colleagues to ensure that these tax cuts are extended in spite of the FY
2008 budget.

One reason given by Democrats for removing the tax relief is that doing
so will help balance the federal budget. The goal of balancing the
budget is one that Democrats and Republicans share. The difference is
how we propose getting there. I, along with my Republican colleagues,
believe that balancing the budget can be done by eliminating wasteful
spending and promoting pro-growth policies to spur a strong economy.

In order to balance the budget without raising taxes, one of the most
important things we can do is reform entitlement spending. Entitlement
programs, particularly Medicare and Medicaid, are growing at
unsustainable rates. Even if tax increases raised federal revenue by
\$392.5 billion over the next five years, which is what the Democrat
budget has called for, federal spending at its current rate will still
outpace revenue. In less than ten years, entitlements will consume 62
percent of the budget, leaving education, science, agriculture, homeland
security and defense to split the remainder.

If we are really going to do something to balance the federal budget, we
must address Medicare, Medicaid and Social Security spending. Last year,
I introduced legislation that will make common-sense reforms to Medicaid
and help ensure the program benefits those whom it is intended to
benefit. While I was pleased to see this legislation signed into law, it
was only a start. I am disappointed that my Democrat colleagues didn't
continue to tackle this issue by addressing needed entitlement reforms
in their budget.

Balancing the federal budget is not an easy undertaking, but it is one
we can achieve. And we can achieve it without passing along the burden
to American taxpayers.

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