ALG on Tax Rates Deal: “A Step in the Right Direction but More Must be Done”

December 7th, 2010, Fairfax, VA—Americans for Limited Government (ALG) President Bill Wilson today issued the following statement on the reported deal struck between the White House and congressional leaders on the lame duck session of Congress’ consideration of preventing imminent tax increases on all Americans:

“Two-year extensions of the income tax, capital gains tax, and dividend tax rates, and a reduction of the estate tax to 35 percent may not be ideal, but they are better than the alternative, which are tax increases on all Americans. After all, the unemployment rate has been at or above 9.4 percent for 19 consecutive months, the worst economic climate since the Great Depression. We need to create jobs, not increase the tax burden for American businesses at a time when the U.S. is already globally uncompetitive.

“A deal to block the imminent tax increases is a step in the right direction, but more must be done. When Congress returns next year, it should get to work on permanently restructuring and flattening the tax code to remove tax subsidies, corporate welfare, exemptions, and lower overall rates. The corporate tax should be eliminated all together to help the U.S. become more competitive in the global economy. This would encourage more businesses to set up shop here in America and create jobs.

“However, the perpetual extension of unemployment benefits past two years should be rejected. It’s not paid for and will only add to the national debt. It’s no longer a temporary program; it’s become a welfare program. If these benefits cannot be paid for with offsetting cuts elsewhere in the budget, they should be rejected. We’re going broke, and the budget will not be balanced ever without spending cuts.”

Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at rrast@getliberty.org to arrange an interview with ALG President Bill Wilson.

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