Republican Case Against Plan B
“Simply finding a segment of society that you can raise
taxes on in order to fill a stop-gap measure, it’s just not enough.”
No, that is not Heritage Action’s critique of the Plan B Tax Increase, though it would be a darn good one. Rather, this is a critique of the Democrat’s plan to increase taxes on those deemed “rich.” The origin of the critique was none other than House Ways and Means Chairman David Camp (R-MI).
In early August, when the House passed H.R.8 – which Heritage Action endorsed – with bipartisan support, Republicans were offering principled arguments. Their arguments were not small or tortured; instead, they were clearly aligned with a vision of smaller government.
It could even be said Plan B’s tax hike is similar to the widely repudiated Buffett Rule, which like so many proposals failed to garner 60 votes in the Senate. Remember, the Buffett Rule would have required all people making over $1 million to pay a minimum tax rate of 30% on any income over $1 million. Plan B would essentially create a new tax bracket, taxing income over $1 million at 39.6% (not including the Obamacare tax increases).
You know, our country is facing some serious economic and fiscal challenges, and the global challenges that we have continue to mount. And all the American people are getting from the Obama administration are political gimmicks like the so-called Buffett rule that won’t do a thing to create jobs in our country. Even the president has admitted that his Buffet tax is a gimmick that won’t help our economy. (emphasis added)
A few more examples of how GOP lawmakers felt in August are below (all emphasis added):
Majority Leader Eric Cantor (R-VA): Instead of offering a plan that would spur economic growth, the minority put forward the President’s small business tax hike. As we saw, Mr. Speaker, the only plan with bipartisan support that passed this House this week was the plan to ensure that taxes do not go up on any American. (House Floor, August 2, 2012)
Chief Deputy Whip Peter Roskam (R-IL): So, if the President’s will were to prevail on this, in other words, if this tax hike goes into place, then the top tax rate for some small businesses would be over 44 percent. (House Floor, August 1, 2012)
Incoming House Republican Conference Chairwoman Cathy McMorris Rogers (R-WA): [I]t begs the question: Why — why are we moving forward, why is the president suggesting that we should be raising taxes during one of the weakest economic times since the Great Depression? … I’m pleased that this week in the House we’re going to be moving forward on legislation to ensure that tax rates remain the same. Americans already pay high taxes. (Press Availability, August 2, 2012)
House Rules Committee Chairman David Dreier (R-CA): The first step that we must take, Mr. Speaker, is to put a stop to the tax increases looming at the end of this year, which is precisely what this institution, the House of Representatives, did yesterday with the passage of H.R. 8. That bill will keep in place our current tax rates, as we all know, for 1 additional year. Now, that’s an essential step. (House Floor, August 2, 2012)
Incoming Joint Economic Committee Chairman Kevin Brady (R-TX): That’s the choice between the Republican plan to stop the tax hikes and grow this economy and the President’s plan to raise taxes and hurt this economy. It is a clear choice. The House is going to act. (House Floor, August 1, 2012)