TCS Daily


Rep. Tim Walberg, Tax Killer

By Nick Schulz - July 23, 2007 12:00 AM

Editor's note: Rep. Tim Walberg (R-Mich.) is the architect of the Tax Increase Prevention Act. He talks to TCS editor Nick Schulz

Schulz: We keep hearing that Americans might be in store for a big tax increase. What are these taxes that will be hiked?

Rep. Walberg: If Democrats follow through on their budget promises, the American people will face a $500 per child tax increase, a 55 percent Death Tax, a 13 percent tax increase for many small businesses, a 33 percent tax increase on capital gains and a 164 percent tax increase on dividends.

Schulz: What is the political likelihood that conservative Democrats will join with Republicans to block the tax increases?

Rep. Walberg: My House colleagues and I will continue to reach out to Blue Dog Democrats to encourage them to help us stop the largest tax increase in American history. While I can't say for sure what exactly will happen, it is important for the American people to know a group of House members is working to prevent this massive tax increase. Additionally, it is important for the American people to know who does and does not support my legislation, so the American people can respond at a grassroots level.

Schulz: You have introduced something called the Tax Increase Prevention Act. Tell us what it is designed to do.

Rep. Walberg: My bill will prevent a $400 billion tax increase on American families and businesses. Under the Democratic plan, we'll see higher taxes on marriage, adoption, childbirth, savings, personal income and repaying college loans. The bottom line is raising taxes hurts American families, discourages innovation and hinders job creation.

Schulz: Why were the tax cuts that were passed in 2001 and 2003 not made permanent when they were enacted?

Rep. Walberg: They should have been enacted as a permanent part of the tax code, and I will fight to make them permanent.

Schulz: Supply-siders argue that tax cuts prompt growth that can offset the revenue losses due to rate cuts. Given the way taxes can influence growth, how do we know what the optimal level of taxation should be?

Rep. Walberg: The average taxpayer filing a 1040 spends 30 hours filling out a tax return and more than six in ten Americans now hire someone to help prepare their tax returns every year. The hundreds of billions of dollars spent each year complying with the federal tax code could be used more efficiently by families and small businesses to grow the nation's economy and create jobs. I support tax reform that will make the tax code simpler and stop the billions of wasted hours spent by Americans just to comply with a burdensome and overly-complex tax code.

Schulz: What do you make of recent proposals to increase taxes on private equity firms by taxing the so-called 'carried interest'? Would your legislation address that?

Rep.Walberg: The Tax Increase Prevention Act would simply make permanent the tax relief from 2001 and 2003. I support restraining federal spending and have pledged not to raise taxes.

Schulz: How are we going to tackle the looming shortfall in entitlement payments, in particular in Medicare, without tax increases?

Rep. Walberg: If you look across the ocean to Europe, massive tax-and-spend policies in countries like France and Germany have led to anemic job creation and stagnant economies. France recently elected a new President based largely on his pledge to cut taxes, balance the French budget and get its economy moving again. Economic growth, increased prosperity and making the tough decisions on needed reforms to restrain entitlement spending are the keys to tackling the upcoming demographic issues related to entitlement spending. The last thing the American people need is higher taxes that will make our nation less prosperous.


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2 Comments

Democrats
Gotta love the Democrats. Tax any investment or wealth creation and give it to others to buy votes.

We wouldn't want people to save for the future when there are votes to buy.

It's time to scrap the current income tax system, instead of just ...
patching it. I urge everyone to contact their congressperson to support the Fair Tax.

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