The new Democratic majority begins dancing the next phase of the tax-and-spend minuet in the House of Representatives today. Following the example set by their Senate brethren last Friday, House Democrats will adopt a budget resolution containing the largest tax increase in U.S. history amid massive national inattention.
It had been assumed that the new Democratic majority would end President Bush's relief in capital gains, dividend and estate taxation. The simultaneous rollback of Bush-sponsored income tax cuts was a surprise. This reflects Democrats' belief that they can survive a long-term commitment to bigger government. Here is an audacious effort to raise the banner of fiscal responsibility while increasing spending and taxes.
This Democratic strategy is encapsulated in what Harry Hopkins, President Franklin D. Roosevelt's main man, is alleged to have told a friend at New York's Empire City race track in August 1938: "We will spend and spend, and tax and tax, and elect and elect." While Hopkins denied ever saying those words, they represented successful Democratic government and political strategy for the next two decades.
Captain Ed continues:
...the nation gave the Democrats the majority in both chambers of Congress. What did we get? No decrease in federal spending; the Democrats want to grow the government by 2.4% each year, which would mean adding close to $100 billion in spending each year. In order to do that, they want to increase taxes across the board, choking off economic growth and making people even more dependent on the government.
By 2011, the added tax burden on every taxpayer would be over $1100 dollars. Twenty-six million small businesses would have to pay almost $4,000 in extra taxes. More than five million Americans whose incomes are too low to pay taxes now would have to start paying in 2011, making the Democratic plan more regressive than what it seeks to replace.