House Chamber, Washington, D.C.
April 19, 2012
The House just passed HR 9 that purports to give a temporary tax cut to small businesses.
I say "purports" because it doesn't cut spending at the same time and thus it merely shifts current taxes into the future. Once a dollar has been spent, it's already become a tax, taken either from today -- or from tomorrow to pay for today's deficits.
Nor does HR 9 do much to promote economic growth because it does little to reward new productivity at the margin. At best it produces a one-year sugar high until the bills come due.
Tax cuts without spending reductions or real economic growth are an illusion.
Real tax reform would permanently reduce the marginal tax rate for all businesses and cut government spending concurrently. This would encourage and reward economic growth, shift investment decisions from politicians to entrepreneurs and not rob our economy of its future.
I hope, before the end of this session, that we will do so.