GOP warns against Obama 'Taxmageddon'

GOP warns against Obama 'Taxmageddon'
By David Jackson,

Republicans blamed President Obama on Saturday for a series of potential tax increases at the end of the year that some have labeled "Taxmaggedon."

In the GOP's weekly radio address, Sen. John Cornyn, R-Tex., said Republicans want to extend all of the current tax rates, including the big-ticket ones signed by President George W. Bush.
"Unless Congress and the President act, January will bring us the largest tax increase in American history -- a tax increase of roughly $500 billion," Cornyn said.

Also due to expire at the end of the year: A payroll tax cut extension that Obama and Congress agreed to earlier this year.

Cornyn also said that Republicans and some Democrats support reform of the entire tax code, but "the bad news is that President Obama is missing in action."

Obama has pledged to work with Congress on tax issues, but wants to end the Bush era tax cuts for individuals making more than $200,000 a year and couples making more than $250,000 annually.
The government needs more revenue to reduce the yawning federal debt, Obama has said, and wealthier Americans are in a position to contribute more.

Sen. John Cornyn, R-Tex.

CAPTION

By KAREN BLEIER, AFP/Getty Images

The Republican radio address:

"Hello, I'm Texas Senator John Cornyn.
As the 2012 election campaign heats up, rather than hope and change, President Obama has opted for fear and envy, and the Democratic Senate Majority Leader Reid is scheduling political show votes. Meanwhile, millions of American workers remain unemployed, and our biggest national problems loom large without the leadership Americans deserve.

Gimmicks won't solve those problems. Unless Congress and the President act, January will bring us the largest tax increase in American history-a tax increase of roughly $500 billion. Some have called it 'Taxmageddon.'

Make no mistake: every single working American will see his or her taxes go up on January 1st absent action. Family budgets will be squeezed even tighter. Disposable income will shrink. And many jobs will be destroyed.

This would be a body blow for our economy and it could easily push us back into a recession. Everyone knows that, including the President, who seems to prefer campaigning to governing, demonstrating a disappointing unwillingness to lead.

Since President Obama took office, millions of households across the country have seen their income shrink, while the cost of health care, food, and gasoline have greatly increased. And yet the President still seems to think that there's nothing wrong with our economy that a tax increase on job creators won't solve.

The resulting uncertainty over federal taxes has been deeply harmful to our economic recovery. After all, if you're a business owner, why would you hire new employees or make substantial investments if you don't know what your tax rates will be on January 1st? Why would you expect the economy to improve when President Obama has repeatedly indicated his belief that the problem is not that the federal government spends too much but that taxes are too low?

Raising taxes is the last thing we should do amid the weakest economic recovery since World War II. Unfortunately, even if we avoid the full 'Taxmageddon' scenario, President Obama's health care law also contains a new surtax on investment that will take effect in 2013. This new surtax will hamper small business investment, which is the lifeblood of private-sector job creation.

I would remind the President that, back in 2010, 47 House Democrats signed a letter that said, 'Raising taxes on capital gains and dividends could discourage individuals and businesses from saving and investing.' That was true in 2010, and it's true in 2012.

The good news is that we now have an emerging bipartisan consensus on tax reform. The bad news is that President Obama is missing in action. The bipartisan consensus is simple: We should lower the rates and broaden the base. That would make our tax system more logical, more efficient, and more conducive to strong economic growth.

But we won't get real tax reform until we get real Presidential leadership. The time for action is now. The longer that President Obama dithers, the greater the harm to our economy.

Republicans have made clear our position: We're eager to prevent the largest tax increase in American history, and we don't see any reason for delay. We sincerely hope the President will work with us to save jobs, protect family incomes, and strengthen the economy.

That's what most Americans want, and that's what they deserve.

Thank you."