The united states should prioritize tax increases over spending cuts

That is a very nice arguement but these taxes will not benefit us citizens. (To shorten this because im lazy im going to list facts that will generally refute your case. If theres a specific arguement or impact i will tell you) "The confluence of fiscal policy changes scheduled to occur at the end of 2012 " sometimes referred to as the "fiscal cliff" " poses serious challenges for policy makers. One area of disagreement is the increase in tax rates for high-income taxpayers resulting in part due to the sunset of elements of the 2001 and 2003 tax cuts. President Obama has called for the reinstatement of the higher top tax rates in his budget submission to the Congress, while key Republican members of Congress have called for their extension. The increase in the Medicare tax and its expansion to unearned income for high-income earners under the Patient Protection and Affordable Care Act of 2010 (PPACA) further contributes to the increase in top tax rates. The concern over the top individual tax rates has been a focus, in part, because of the prominent role played by flow-through businesses " S corporations, partnerships, limited liability companies, and sole proprietorships " in the US economy and the large fraction of flow-through income that is subject to the top two individual income tax rates. These businesses employ 54% of the private sector work force and pay 44% of federal business income taxes.1 The number of workers employed by large flow-through businesses is also significant: more than 20 million workers are employed by flow-through businesses with more than 100 employees. This report uses the EY General Equilibrium Model of the US Economy to examine the impact of the increase in the top tax rates in the long-run. While a recent Congressional Budget Office (CBO) report examined the near-term effects of all of the federal government fiscal policies under scrutiny at the end of 2012 and found them to be of sufficient size to push the economy into recession at the beginning of 2013, this report focuses on the long-run effects of the increase in the top tax rates. This report examines four sets of provisions that will increase the top tax rates:  The increase in the top two tax rates from 33% to 36% and 35% to 39.6%.  The reinstatement of the limitation on itemized deductions for high-income taxpayers (the "Pease" provision).  The taxation of dividends as ordinary income and at a top income tax rate of 39.6% and increase in the top tax rate applied to capital gains to 20%.  The increase in the 2.9% Medicare tax to 3.8% for high-income taxpayers and the application of the new 3.8 percent tax on investment income including flow-through business income, interest, dividends and capital gains. With the combination of these tax changes at the beginning of 2013 the top tax rate on ordinary income will rise from 35% in 2012 to 40.9%, the top tax rate on dividends will rise from 15% to 44.7% and the top tax rate on capital gains will rise from 15% to 24.7%. These higher tax rates result in a significant increase in the average marginal tax rates (AMTR) on business, wage, and investment income, as well as the marginal effective tax rate (METR) on new business investment. This report finds that the AMTR increases significantly for wages (5.0%), flow-through business income (6.4%), interest (16.5%), dividends (157.1%) and capital gains (39.3%). The METR on new business investment increases by 15.8% for the corporate sector and 15.6% for flow-through businesses. This report finds that these higher marginal tax rates result in a smaller economy, fewer jobs, less investment, and lower wages. Specifically, this report finds that the higher tax rates will have significant adverse economic effects in the long-run: lowering output, employment, investment, the capital stock, and real after-tax wages when the resulting revenue is used to finance additional government spending. Long-run macroeconomic impact of increasing tax rates on high-income taxpayers in 2013 ii Through lower after-tax rewards to work, the higher tax rates on wages reduce work effort and labor force participation. The higher tax rates on capital gains and dividend increase the cost of equity capital, which discourages savings and reduces investment. Capital investment falls, which reduces labor productivity and means lower output and living standards in the long-run.  Output in the long-run would fall by 1.3%, or $200 billion, in today‟s economy.  Employment in the long-run would fall by 0.5% or, roughly 710,000 fewer jobs, in today‟s economy.++  Capital stock and investment in the long-run would fall by 1.4% and 2.4%, respectively.  Real after-tax wages would fall by 1.8%, reflecting a decline in workers‟ living standards relative to what would have occurred otherwise." http://waysandmeans.house.gov... Now i would like you focus on the 3 to last point that has + after it. This tax increase on the rich buisnesses and the average american will result in 710,000 jobs. Now this is better then my opponents because this facts that my opponent has given is from a organization, yes this organization is out there to help people with no profit but mine is a government website. Also the reason why we are not letting our nation go over this fiscal cliff is to avoid these tax increases and its affects which i show through my one fact.