“NO” on Plan B Tax Increase
On Thursday, the House is expected to vote on “Plan B,” which would allow tax rates to increase on some Americans and small businesses. The plan is based on an idea floated by Senator Chuck Schumer (D-NY) in 2010 and endorsed by House Minority Leader Nancy Pelosi (D-CA) earlier this year.
America’s coming fiscal crisis is a result of overspending, not under-taxing. Allowing a tax increase to hit a certain segment of Americans and small businesses is not a solution; it is a political ploy.
The Heritage Foundation explains that such a “maneuver succeeds only if the House Republican leadership permits it.” Moreover, decoupling the 2001- and 2003-era tax rates would “constitute a clear path toward surrender on conservative principles.” Taking money out of the private sector to fund the public sector is not only misguided, it is counterproductive. Reversing course on the need for higher taxes will only serve to embolden the left’s big-government agenda. History has shown tax increases do little to stem annual deficits; in fact, deficits tend to increase.
To date, President Obama has proven to be fundamentally unserious about tackling our nation’s coming fiscal crisis. America needs real leaders proposing real solutions, such as those found in Heritage’s Saving the American Dream plan or even the previous House-passed budget. That seriousness of purpose is undermined when a political party embraces the other side’s political gimmick, as is the case with the Schumer-Pelosi tax plan.
Heritage Action opposes “Plan B” and will include it as a key vote on our legislative scorecard.