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December 23, 2011

Tax Cuts Should Be Permanent

Last year, Congress cut the payroll tax from 6.2% to 4.2% for 2011. Many in Congress want this extended for another year. As of Thursday night, it appeared that House Speaker John Boehner agreed to a two-month extension to buy time to negotiate a “deal” to extend it through the rest of 2012.

We agree that the payroll tax rate shouldn’t be raised, but we object to this process.

That’s why I sent the following letter to Congress, and we invite you to write one, too.

The hard-wired message says simply…

Please cut federal taxes.

You may borrow from or copy these additional comments…

The main reason I want tax cuts is because I don’t like how government spends my money. That’s why I also want SPENDING CUTS that are even greater than tax cuts.

* Taxes should be lowered, PERMANENTLY
* Spending should DRASTICALLY decrease, PERMANENTLY

Taxing policy should NOT hinge on short-term economic trends. They should NOT serve as a “stimulus.” They should NOT be negotiated on a month-to-month or year-by-year basis.

Instead, you should cut taxes (and spending) because it is THE RIGHT THING TO DO.

I believe the bill extending the 4.2% payroll tax rate for only two months is reckless and irresponsible…

* There is no guarantee that an extension agreement will be reached later on.
* This will make family budget planning more difficult, discouraging the very consumer spending 4.2% rate is supposed to encourage.
* And create uncertainty among employers, which could stall new hiring.

Do NOT allow this to happen again! Instead…

* Agree to lower payroll taxes AND income taxes.
* Reform the financing structure of Social Security and Medicare
* Cut federal spending to balance the budget IMMEDIATELY

This will…

* Create a more attractive climate for business growth and job creation
* Free up capital wasted in the Coercive Sector, and allow it to flourish in the voluntary sector
* And trigger a boom in the economy, similar to what the U.S. enjoyed when federal spending was drastically cut after World War II

Don’t cut taxes haphazardly and temporarily. Cut taxes and spending permanently. Downsize the federal government so that we may live free and prosper.


You can send your letter using’s Educate the Powerful System.

We also invite you to “Like” us on Facebook and share our posts with your friends.

Thanks for being a DC Downsizer, and have a wonderful Christmas weekend.

James Wilson
Policy Research Director, Inc.

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