Economy & Taxes
We all understand how economics work. We must manage our households using financial common sense. If our expenses exceed our income, then we go into debt and have to pay interest on that debt, further damaging our finances. This is an every day fact of life for most Americans, but it seems politicians in Washington are immune to these facts. When one is not personally responsible for the debt incurred, it becomes a statistic that is easily glossed over. Since politicians in Washington are able to borrow money from other countries and spend recklessly without accountability, our budget deficit has ballooned to over $3.5 trillion and our national debt currently stands at nearly $25 trillion. In 2021, we will spend $378 billion just to pay the interest on our debt.
No one in Washington appears to have a solution. While it is easy to blame Democrats for the spending spree they often propose as part of their campaigns, Republicans are often too quick to spend on their preferred projects when they control the Congress and White House. I support a balanced budget amendment to the Constitution that would require Democrats and Republicans alike to ensure that new spending does not increase the national debt. In addition, I pledge that all bills I write will be deficit neutral. If I propose a policy that requires new spending, I will include in the same bill a proposal for how to pay for the policy without incurring additional debt.
Paying for the government and its many programs falls too often on the middle class. Taxes not only stifle growth and prosperity, they prevent self-sufficiency, which results in people turning to the government for assistance. This basic principle is not debated. Although we view this as a Republican approach to taxes, anytime there is a national crisis, such as after 9/11 or during the COVID-19 pandemic, Democrats seem to understand that putting more money in the pockets of everyday Americans is good for the economy. However, when the economy is performing well, Democrats sense an opportunity to increase taxes as a way of paying for their expansion of government programs.
Democrats' insist they only want to target large corporations and the wealthy, often repeating the same refrain that these sources do not "pay their fair share." Although they often fail to define "fair share," they typically propose increasing taxes on capital gains and corporate profits. Raising taxes on these forms of revenue will have a significant negative impact on stock prices, which will adversely impact retirement accounts, the 55% of Americans who own stock as investments, and the ability of businesses to invest in jobs and innovation. In addition, the spending Democrats propose typically outpaces the revenue that will be raised through these sources alone and the middle class and small businesses will eventually be taxed to pay for the rest.
Raising taxes that will harm Americans and the economy is not the answer. Like the rest of us, politicians in Washington must make smarter and more fiscally sound decisions with the money of American taxpayers. We must rein in spending by prioritizing the programs and policies most in need of funding and by eliminating those programs that have failed to deliver. Simplifying the tax code is the first step of many. We also must promote small business by cutting the red tape that results in unnecessary expenses, and keep tax rates low to encourage growth. In short, we must hold true to our founding principles of free market economics, protecting small businesses, and trusting that Americans know better how to spend their money than do politicians in Washington.