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Fiscal Deal Raises Taxes

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The debate over the fiscal cliff has gone from bad to worse.

Early this morning, as most Americans were either sleeping or celebrating the New Year, the U.S. Senate voted to confiscate more of our money to spend on government programs in Washington.

According to reports from Capitol Hill, the new deal negotiated by Senate Republican Leader Mitch McConnell (R-KY) will allow taxes to go up on just about everyone. It raises income taxes, capital gains taxes, dividend taxes, death taxes, and payroll taxes.

If you have a job, you're definitely going to get hit with higher payroll taxes. But even if you don't fall into any of these categories, this deal is going to hurt you and your family.

You simply can't take over $600 billion out of the private economy without serious consequences that reduce opportunities for everyone.

The worst part of this deal is that it doesn't cut spending.

The last time we faced a fiscal cliff, the deal-makers raised the debt limit and promised us they would cut spending or face and automatic, across-the-board sequester. Guess what? They lied. This deal doesn't cut spending.

This is precisely why conservatives oppose tax increases. It's true that higher taxes reduce economic growth, but the real problem with more taxes is that Washington always spends the money. Politicians just use it to create more government programs we can't afford.

Beyond higher taxes and more spending, the fiscal cliff deal is stuffed with all kinds of pork. This is what happens when bills are rushed through in the dark of night. We already know they stuck the farm bill in and we expect to find dozens of corporate tax breaks for President Obama's cronies.

So don't let your senators plead ignorance when we learn about the pork projects and special interest deals that were added behind closed doors. They voted for a bill they didn't read so they have nobody to blame but themselves.

Thankfully, there were at least three conservative standouts who had the foresight and courage to oppose this horrible deal: U.S. Senators Rand Paul (R-KY), Mike Lee (R-UT), and Marco Rubio (R-FL). All three were backed by SCF in 2010.

This should be a teachable moment for the Republican leadership in Washington. They must learn they will never avoid blame by capitulating. Democrats will always find ways to criticize them.

They must also learn they will never take difficult issues off the table by capitulating. In fact, President Obama said this morning he wants even higher taxes in the upcoming debate over the debt limit.

The only effective strategy is to draw principled lines in the sand and have the courage to stick to them.

Thank you for standing strong for freedom. We'll keep fighting.

Posted By: Matt Hoskins, SCF Executive Director
Category: Senate   Tags: Barack Obama  Mitch McConnell  
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