Reject Tax Hikes, Pursue Pro-Growth Tax Reform. The fiscal problems currently facing the federal government were created by too much spending, not too little taxes. Anemic economic growth and worsening long-term fiscal projections signal the importance of tax and spending reform-further delay will only exacerbate these problems. The tax code is in dire need of an update. In its current form, the U.S. tax system is economically destructive, overly complex and-unfairly-treats similar taxpayers differently. Responsible tax reform can increase economic prosperity and produce welfare gains for all Americans through increases in job creation, investment, output, and real wages. The basic principles of a good tax system are straightforward. The tax system should: Apply the most efficient and least economically destructive forms of taxation, levy low rates on a broad base that eliminates the double taxation of investment, and be as transparent, predictable, and simple as possible while respecting the core institutions of civil society and protecting the rights to life, liberty, and property. Congress should pursue tax reform in a fiscally responsible way. As spending is driving growing deficits and debt, Congress should reduce and control spending while alleviating the overall tax burden faced by individuals and businesses.
Facts and Figures
FACT: Government spending and borrowing is out of control, placing an enormous burden on younger generations.
* Deficit spending per household in 2016 was $6,665-meaning that the federal government spent more than $6,000 per household than it received in tax receipts.
* Total federal spending per household reached $30,631 in 2016, and is projected to rise by more than one-fifth to $37,715 per household in 2027.
* No American family could spend and borrow as Congress does. If it could, a median-income family with $54,000 in yearly earnings would spend $61,000 (in 2013 dollars), putting the $7,000 deficit on a credit card while already being over $300,000 in debt.
FACT: The U.S. national debt continues to rise at an alarming and unsustainable rate.
* To set aside enough money today to pay the current debt and future unfunded costs just from Social Security and Medicare, each American alive today would owe more than $217,000.
* At $19.9 trillion, the national debt now amounts to $158,000 for every tax-filing household in America.
* Within the next 10 years, the federal government is projected to spend more on interest payments on the national debt than it will on national defense.