I Want You to Pay More Tax

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A presentation delivered March 25, 2010 at an event sponsored by the Colorado Committee for Heritage.

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I Want You to Pay More Tax

  1. 1. I Want You To Pay More Tax <ul><li>Colorado Community Committee </li></ul><ul><li>March 25, 2010 </li></ul>
  2. 2. What We Should Talk About <ul><li>Permanent Tax Relief </li></ul><ul><li>Permanent Pro-Growth Tax Relief </li></ul><ul><li>Tax Reform to Simplify Tax System and Grow the Economy </li></ul>
  3. 3. Budget Picture Gloomy <ul><li>Deficit of 9.9% of our economy </li></ul><ul><ul><li>Versus 3.2% in 2008 </li></ul></ul><ul><li>CBO projects deficit of $1.5 trillion for 2010 </li></ul><ul><li>Government debt up $11.3 trillion 2010-2020 </li></ul><ul><li>Stripped of gimmicks, expect far more </li></ul>
  4. 4. The Problem is Washington’s Addiction to Spending Source: CBO 3/2010 Average = 20.3 % of GDP
  5. 5. Federal Receipts Return to Normal Source: CBO 3/2010 Average: 18.4 % of GDP
  6. 6. While Spending is Far Above Normal Source: CBO 3/2010 % of GDP
  7. 7. Producing Unsustainable Deficits Source: CBO 3/2010 % of GDP
  8. 8. And Unsustainable Federal Debt Source: CBO 3/2010 2010 = 90% 2020: 90% % of GDP
  9. 9. A Tale of Two Strategies <ul><li>Reagan – Starve the Beast </li></ul><ul><li>Obama – Glut the Beast </li></ul>
  10. 10. A Tale of Two Strategies <ul><li>Reagan – Starve the Beast </li></ul><ul><li>Obama – Glut the Beast </li></ul><ul><ul><li>Massive new spending on health care </li></ul></ul><ul><ul><li>On welfare programs </li></ul></ul><ul><ul><li>On highways and infrastructure </li></ul></ul><ul><ul><li>Grants to states and municipalities, increasing dependence on mother Washington </li></ul></ul>
  11. 11. The Problem is Washington’s Addiction to Spending Source: CBO 3/2010
  12. 12. Moment of Decision: Leadership, Commission or Crisis? <ul><li>Obama temporizes with a phony deficit commission </li></ul><ul><li>A budget commission could work, under certain conditions </li></ul><ul><li>One key, in Obama’s own words </li></ul>
  13. 13. <ul><li>The way to make government responsible, is to hold it accountable, and the way to make it accountable is to make it transparent. So the American people can know exactly what decisions are being made. How they are being made and whether their interests are being served. Barack Obama, January 21, 2009 </li></ul>TRANSPARENCY
  14. 14. A Commission Could Work <ul><li>A budget commission could work, if </li></ul><ul><li>Open and transparent </li></ul><ul><li>Final report months prior to a national election </li></ul><ul><li>The next Congress must vote on the recommendations </li></ul>
  15. 15. Obama Commission <ul><li>Transparency? – No, the height of opacity </li></ul><ul><li>Honest? Reports after the election </li></ul><ul><li>Accountable? May have a vote after the election </li></ul><ul><li>Obama Commission designed to fail, and it will </li></ul>
  16. 16. Moment of Decision: Leadership, Commission or Crisis? <ul><li>No leadership </li></ul><ul><li>A failed commission </li></ul><ul><li>Financial Crisis – the redux </li></ul>
  17. 17. Glut the Beast – the Conclusion <ul><li>The problem is too much spending </li></ul><ul><li>Deficits are unsustainable </li></ul><ul><li>No political solution, therefore crisis </li></ul><ul><li>Inevitable spending inevitably means much higher taxes </li></ul><ul><li>Current system nearly tapped out </li></ul><ul><li>Must find another revenue source </li></ul><ul><li>Answer – A Value Added Tax </li></ul>
  18. 18. The Right Answer <ul><li>Starts and ends by cutting spending </li></ul><ul><li>Freezing day-to-day spending is fine </li></ul><ul><li>But the real issue is the benefit programs – Medicare, Medicaid, Social Security </li></ul>
  19. 19. What Should We Do On Taxes? <ul><li>Good Example – Ryan’s Roadmap </li></ul><ul><li>Cut Tax Rates – </li></ul><ul><ul><li>35 percent for individuals </li></ul></ul><ul><ul><li>8.5 percent for businesses </li></ul></ul><ul><li>Eliminate the tax on saving and investing </li></ul><ul><li>Repeal the AMT </li></ul><ul><li>Repeal the death tax </li></ul><ul><li>Give American workers and companies a chance to compete and win in the global economy! </li></ul>
  20. 20. A Choice Will Be Made <ul><li>About the role and size of government </li></ul><ul><li>About taxes, higher or lower </li></ul><ul><li>About the vitality of our economy and the prosperity of future generations </li></ul><ul><li>It’s a choice for or against freedom </li></ul>
  21. 21. I Want You To Pay More Tax <ul><li>Colorado Community Committee </li></ul><ul><li>March 25, 2010 </li></ul>

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