Dive off that fiscal cliff
Ex 20:15
[Message from Michael Reagan]
Dear Reader:
As negotiations on fiscal policy proceed, Congressional Republicans should
absolutely call for renewal of the Bush-era tax cuts — and make them permanent.
I for one, and I think most of America is with me, am tired of going from year
to year to year to year with no federal budget.
It’s about time Harry Reid is called on the carpet for not passing a budget in
four years.
Most of America is not aware that we have been living on a continuing resolution
budget, a “CR” in Washington-speak, for the past four years.
Yet the dominant media refuse to tell the story of Harry Reid. Instead they
continue to blame the Republicans, as if they’re not going to the table.
The idea is that the Republicans should cave, not the Democrats.
The League firmly opposes any tax increase, and urges all Democrats and
Republicans to oppose any legislation that leads to a net increase in overall
tax revenue for the federal government.
Even a tax on the so-called “wealthy” will have disastrous results for the
economy.
All of us are aware that raising taxes on the top two percent is not going to
dent the federal deficit at all. Such a tax will cover just nine days of federal
deficit spending — just nine days!
And the likelihood is that a tax increase will hurt the highest income earners
and small business owners, the most successful in our society.
If they have to pay more in tax, they will cut back spending, hire less, and
move their assets into tax havens like government bonds.
In the end, the government will get less in taxes, and the federal deficit will
increase.
Don’t believe me?
That’s exactly what happened in Britain, where the coalition government raised
taxes on the wealthy.
Here’s what happened:
“As taxes assume a leading role in U.S. policy debate ... the first receipts on
a new wealth tax in the U.K. have brought disappointing results to British
Treasury officials. ... Some observers, political conservatives among them, are
taking the recent experience in the U.K., which last year raised its top rate on
high income earners from 40% to 50%, as a demonstration of the ineffectiveness
of a tax-the-rich policy.
“Britain’s Telegraph newspaper reported that the U.K. Treasury — in the first
test of the wealth tax policy introduced last year — received 509 million pounds
less for January than the same month in 2011. The Treasury had projected that
monthly revenues would actually increase by more than 1 billion pounds.”
Press reports suggest a “compromise” deal may be worked out — one that adds as
much as $1 trillion in new taxes coupled with spending cuts.
But wait a minute, these are not real cuts, they are “promised cuts.”
President Obama and his allies in Congress, ever since I can remember, have been
promising three-for-one deals, two-for-one deals, one-for-one deals on spending
cuts versus increases in taxes.
The truth is that Congress has never delivered on these promised cuts. Cuts
proposed now can be eliminated by a simple act of Congress in the future — and
that’s typically what happens.
So, Congress should simply say “no” to any deal calling for increased taxes on
anybody.
I’ve been asked if I’m happy with Speaker John Boehner.
Well, I’m not happy with either party.
And it seems to me conservatives lack a real spokesman, a leader, to represent
the American taxpayer.
The fact of the matter is they’re allowing the mainstream media and Obama’s team
to define the issue.
When conservatives in Congress are defending and not defining, they are losing.
They’re absolutely losing the debate because they’re not defining the debate.
Just like in football — with a prevent defense, you lose.
Republicans should insist on entitlement cuts. There have to be cuts. Cuts now.
Today.
If people in Congress get together now to “save” us from the fiscal cliff with a
compromise deal, there will be nothing good in the bill.
Congress should stand fast because any deal now is a bad deal. It’s like making
a deal when you’re angry. It’s always a bad deal.
I realize it’s a holiday period, but I am urging you today to call Congress, ask
for your representative and senator, tell them you OPPOSE any tax increase in
any form.
You can tell them Mike Reagan recommended you call them.
Please call the Congressional switchboard now at:
202-224-3121
If the line is busy, please call back and try again.
Don’t let Congress ram through a major tax increase under the cover of a
holiday!
Thank you.
Yours for America,
Michael Reagan
Chairman
