Taxes: With just weeks to go before the midterm
elections, Americans have made it clear they don't want their taxes raised.
So what do congressional Democrats do? Nothing — at least until the
elections are over.
For months, Democrats have hammered Republicans for trying to keep
President Bush's tax cuts in place for everyone, not just the middle class
and those who no longer pay taxes. That would be a "giveaway to the rich,"
they contend. But guess what? Most Americans don't see it that way.
In a recent Fox News/Opinion Dynamics Poll, 63% want the Bush-era tax
cuts — now set to expire at year-end — to remain in place. In the latest
IBD/TIPP Poll, 48% favor making the cuts permanent vs. 30% opposed. And as
for taxes on the rich, an AP-GfK Poll found that 39% support letting taxes
go up only on those earning over $250,000, but 44% oppose the idea.
Hence, the Democrats' dilemma: Either way they vote, they'll anger a
large chunk of the electorate — at a time when they need all the votes they
can get to keep from being swept out of power.
So rather than hold an up-or-down vote on a tax bill that reflects their
true beliefs, Democrats are postponing any action until after the elections.
Obviously they know that what they really want to do will be wildly
unpopular, and perhaps cost them seats.
But Americans know what they want, too, and they'll see through the
politics Democrats are playing with the economy at a time we can least
afford it.
If they've decided to hike taxes during a lame-duck session of Congress
after the election, they sure shouldn't keep it secret. If people feel lied
to during the election, they won't be very happy. Democrats need to let
their intentions be known — or face the wrath of the voters later.
If they think they can raise taxes on everyone or slap the "rich" with
higher taxes and get away with it, they might be surprised. Ultimately, this
will be a politically self-defeating strategy, making their far-left voter
base happy but sacrificing middle-of-the-road Democrats who want to see the
economy create jobs again.
Taxing the rich sounds good on paper or as a sound-bite in the
left-dominated mainstream media, but it's the rich who create businesses and
do most of the hiring in this country. Tax these entrepreneurs and you tax
jobs — the last thing we need after losing 8 million in three years.
As economist Curtis Dubay of the Heritage Foundation has noted, tax hikes
on the rich "will slow down economic growth and job creation while the
economy struggles to recover from a steep recession . .. (and) will hurt
Americans at all income levels."
Running a standard econometric model, Dubay estimates that letting taxes
rise just on the rich, as President Obama and Senate Democrats propose, will
cost the economy 7 million jobs over the next decade — and nearly $720
billion, or $6,000 per household, in income.
That's an awful price to pay for envy. Before voting this fall, Americans
should pin down their representatives on where they stand on tax cuts.
Republicans have put out their Pledge to America, so you know what they
stand for. What about the Democrats?