LANGHORNE, PA – Congressman Mike Fitzpatrick (PA-08) addressed the failure of the Senate and the Administration to get our nation’s fiscal house in order as today marks the close of the 2012 Fiscal Year. October 1st, 2012 is the fourth anniversary of trillion-dollar deficits, and, is precisely three months from the largest tax hike in American history.
"Today has the dubious distinction of marking two financial milestones: four straight years of trillion-dollar deficits and three months until the largest tax increase in American history. It is time to get serious about getting our nation’s fiscal house in order.
The failure of the United States Senate to pass a budget in over three years only feeds the reckless spending habits of the Federal Government. We can never expect to restore fiscal responsibility to our nation's capital when a budget cannot get passed, let alone one that is balanced. Not only do I support a balanced budget amendment to our Constitution, but I support the No Budget, No Pay policy which forces legislators to do their job.
In addition to the burden of ever-increasing debt and deficits, American families and small businesses are on the verge of being subjected to the largest tax hike in American history which will cost the typical family in Bucks County over $4,100 per year and destroy our fleeting economic recovery.”
A July report by Ernst & Young analysts cautioned that 'higher marginal tax rates will result in a small economy, fewer jobs, less investment and lower wages. Specifically…higher taxes will have significant adverse economic effects in the long-run: lowering output, employment, investment, the capital stock, and real-after tax wages when the resulting revenue is used to finance additional government spending.'
The report also warns that reduced work effort and labor force participation resulting from higher taxes will reduce long-term economic output by more than $200 billion and destroy over 710,000 jobs.
“The negative effects of trillion-dollar deficits and historic tax hikes on all families and our small-business job creators are clear. Congress must not fail in the task so plainly laid out before it."