Tax Hikes Are Not the Right Path to Reducing the Deficit
Kathryn Nix /
Congress must soon reach a consensus on whether, and on whom, they will raise taxes in 2011. With the economy at the forefront of Americans’ concerns, the effects of raising taxes for any income bracket are a serious matter. Proponents of tax hikes argue that reducing the deficit through increasing tax revenues is more important. That argument raises a number of serious questions.
But what about the economy? The Washington Post’s Lori Montgomery writes that “the economy is sluggish and the national debt is soaring to worrisome levels.” She’s right, of course. But the last thing Congress should do in a faltering economy is raise taxes, as breaking research from Heritage’s Center for Data Analysis reveals. According to its report, which compares the President’s plan to raise taxes on the rich only with a scenario in which all the cuts are extended for everyone, allowing tax hikes for the top income brackets alone would cause employment to fall by an average of 693,000 jobs each year over the next decade. That’s in addition to already-high unemployment. (more…)