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The Big Tax Squeeze Unlike holidays, when dining room tables across America fill with good food and good cheer, April 15th is approaching and family tables are disappearing under a mountain of receipts, bills and overly-complicated government forms. Americans are facing the grim reality that yet another tax day approaches. I have yet to meet a person who thinks he or she sends Washington too little of their money. And especially now, when our expected government surplus -- meaning excess tax receipts -- over the next ten years will top $5.6 trillion. Today's working families bear a tremendous tax burden. The average family today pays more in taxes than it spends on food, clothing, shelter and transportation combined. Tax Freedom Day, or the calendar day the typical American stops working for the government and starts working for himself, was May 3rd last year. This was the longest period that Americans had to work to pay their taxes ever. In fact, under the Clinton Administration, Tax Freedom Day was pushed back by nearly two weeks, from April 20th to May 3rd. Looking at the tax burden another way, federal, state, and local taxes consume almost 40 cents of every dollar the American family earns. In 1955, it was only 18 cents for every dollar. Surely some of that money could be better spent on home mortgages, food, clothing, and education. It's time to cut taxes. We're sending money to Washington that Washington plainly does not need right now. Congress is now debating President Bush's tax plan, which will give some of that tax surplus back to the American people. For example, families of four making $35,000 a year will no longer pay federal income taxes. You heard right — no more federal income taxes! That takes 6 million American families right off the federal tax rolls. That is not all. Families of four making $50,000 a year will have their federal taxes cut in half, receiving at least $1,600. And a family of four making $75,000 a year will receive a 25 percent tax cut. I think most Americans would admit that good deals do not get much better than this. The President's plan is not only a good deal, but also fiscally responsible. Many ask if we can afford this tax cut. A good question to which the answer is clearly "yes." Over the next ten years, the federal government is going to receive $5.6 trillion in surplus tax revenues. That is "trillion" with a "T." If the federal government is getting too much taxpayer money - which is what a surplus is - maybe we ought to do the right thing and leave more of it with the folks who actually earned it. And even after the President's tax proposal, there will still be a significant surplus to make sure that the Social Security surplus remains sound for future generations. In addition, there will still be enough money to take care of our education and military priorities. We must give families and businesses an indication that they are going to get some relief from the excessive tax burden that is dragging down our economy. Tax relief adopted now is a strong signal that businesses can continue to invest, consumers can continue to spend and we do not need to worry ourselves into a deep recession. With some hard work, Congress might actually be able to turn a lemon of a tax policy into a little bit of lemonade in the form of tax cuts. After working so hard to send this tax surplus to Washington, we are all a little thirsty for tax relief. |
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