This week, the U.S. Senate will be voting on a "tax extenders" package, which also includes additional spending. It also contains billions of dollars in new tax increases.
This bill violates the Taxpayer Protection Pledge because it raises marginal income tax rates, and because it is a net income tax increase. ATR is key-voting against this tax increase bill.
Thankfully, senators have a much better option to vote for. Senator John Thune (R-S.D.) has introduced an alterative that cuts spending, cuts taxes, and cuts debt.
Specifically, it does the following:
- prevents a tax increase by extending all the tax relief which expired at the end of 2009
- drops all the harmful tax increases in the bill, including the carried interest capital gains tax hike, the small business corporation tax hike, and the tax hikes on international business income
- cuts spending in a common-sense way both to finance this tax relief, and to re-direct spending to other priorities
Put simply, the Thune alternative does not raise taxes—it cuts them. It does not raise spending—it cuts it. It does not increase the national debt—it lowers it. This is the type of common-sense budgeting Washington Democrats say they are for, but never seem to actually do.
This alternative is excellent, and ATR may rate it in our annual Congressional scorecard.