Herseth says letting South Dakotans keep their money is "one of the most fiscally irresponsible things that we can do"
WASHINGTON- Stephanie Herseth (D), currently campaigning for South Dakota\’s Congressional seat, has publicly stated her opposition to preventing the automatic tax increases on the horizon, calling preserving the tax cuts, "one of the most fiscally irresponsible things that we can do" (Brookings Register, 4/28/04). Americans for Tax Reform (ATR) today called her conception of fiscal responsibility seriously flawed.
"If you ask me who is the more responsible steward of South Dakotans\’ money-Congress or South Dakotans themselves-it wouldn\’t take long for me to answer. South Dakotans don\’t need Congress to spend their money for them. It is a colossal error to believe allowing them to keep more of their own money is fiscally irresponsible," said Grover Norquist, taxpayer advocate and president of ATR.
ATR noted that the economy turned a sharp corner with the Bush tax cuts that Herseth opposed. On May 28, 2003, President Bush signed into law the most pro-growth tax cut since Ronald Reagan\’s historic tax cut in 1981. The new tax law accelerated income tax rate reductions, expanded business depreciation, increased small business expensing amounts, slashed the capital gains tax, and significantly reduced the double taxation of dividends.
"After one year, it\’s now obvious that the tax cuts are working even better than expected. At this time last year, pundits were concerned about a \’double dip\’ recession and deflation. Today, some are concerned the economy is growing too fast. The facts, however, show the economy is healthy and growing at its fastest pace in twenty years, spurred by business investment, household income growth, and a growing stock market. I suppose Herseth considers phenomenal growth and increasing employment irresponsible," said Norquist.
An automatic tax increase is on the horizon for South Dakotans and the rest of America, however, ATR noted. Unless Congress takes action, the tax cuts will begin to expire as a result of rules imposed by Democrats. Stephanie Herseth has stated her support for major portions of the coming automatic tax increase, meaning a higher tax bill could be on the horizon for South Dakota families.
"Never once has this country taxed its way out of a deficit," said Norquist. "We grow our way out of deficits. With Herseth\’s higher-tax agenda, that would be very difficult. Now that would be irresponsible."