There are a lot of issues that Democrats are trying to run away from as they campaign in their home districts and states. You probably won’t hear much talk about the health care law – they know the people don’t like it and don’t want it. You can also bet that they won’t talk much about the fact that President Obama and the Democrats have increased the deficit to three times what it was under President Bush.
But Democrats are planning an “after election surprise” for the American people. You can be sure the Democrats won’t tell you that on January 1, 2011, your taxes are going up. Right now, the only thing Democrats will say publicly is that they are “allowing the Bush tax cuts” to expire. When those tax cuts expire, the tax rates for all Americans will go up. If we have learned one lesson from the past, it is that raising taxes in the midst of a recession will only hinder our precarious economic recovery.
The Democrats are pretty good at spinning the issues to suit their ideology. But there is one thing they can’t do and that is spin the facts. The American people are paying close attention to the economy and the national debt. Democrats can try to convince people that they have discovered a new calling – that of fiscal responsibility. But Americans know better. In two years, Democrats in Congress, at the urging of the Obama Administration have passed a trillion dollar stimulus that was hugely wasteful, and have added a new health care entitlement that most Americans did not want and cannot afford.
If the Bush Tax Cuts are permitted to expire, the resulting tax increase will stifle any hopes of new job growth and will crush our economic recovery. In fact, the damage done will strongly outweigh any presumed boost in tax revenues.
American businesses are sitting on an estimated $2 trillion in cash – money that could be spent hiring more workers, funding new projects or paying out dividends to investors. But they aren’t going to spend that money until they have a clearer picture of what the federal government plans on doing over the next five years and how that will affect their businesses. With weak demand for goods and services, uncertainty over new regulations and mounting costs associated with the requirements of newly passed legislation; it is easy to see how the Administration’s “Recovery Summer” turned into the recovery that never happened.