Lowering Taxes, Improving the Economy

Congressman Bob Barr, April 26, 2002

There is perhaps no issue that better defines the difference between America’s two political parties, and no issue more important to working Americans, than taxes. Since taking control of the House of Representatives in 1995, my colleagues and I in the Republican Party have fought hard to lower the enormous tax burden on families and small businesses, while seeking to minimize the size and scope of the federal government.

Unfortunately, year after year, our efforts were blocked by President Clinton’s veto pen; except for one shining moment in 1997, year after year, tax relief withered on the vine because of Democrat obstruction. In fact by the end of the Clinton Administration, the average American family paid more in taxes than on food, clothing and shelter combined.

Fortunately, the tide has turned under President Bush. Under sweeping tax relief passed by Congress and signed by the President last year, Americans are seeing more money in their take home pay, and are sending less money to Washington. This includes, sixteen million black Americans, fifteen million Latinos and more than sixty million women. Lowering taxes across the board means every American who pays taxes - whether rural or urban, rich or middle class.

Not surprisingly, the economy has responded. Just recently, for example, it was announced the economy has grown in the first three months this year by a 5.8% annual rate, the best performance in more than two years.

However, with some Democrats calling for a repeal of this tax relief and with the recent passing of Tax Freedom Day -- when Americans have finally earned enough money to pay their annual tax debt -- we are constantly reminded that more must be done. Georgia’s Tax Freedom Day this year was on April 24th, more than 114 days into the year. In fact, the typical American worker spends nearly three hours of an eight-hour workday just to pay the government. This is wrong. We can and should do more.

There are a number of important initiatives I am committed to pursuing in the Congress, to continue lowering this tax burden on American workers, and finally taking action on needed tax reform. First, under a weird Senate rule demanded by Democrats during the tax relief debate last year, the legislation will sunset after 10 years; meaning, unless this relief is made permanent, the income tax rates will be raised back to their original high levels! We cannot afford to let this happen. That is why, recently, the House passed legislation that would make permanent this largest tax relief package in 20 years. From the marriage penalty to the death tax, working families and small business owners cannot afford an enormous tax hike 10 years from now. I firmly believe, however, the only way this legislation will be signed into law is if the Senate is put back in Republican hands. Senate Democrat Majority Leader Tom Daschle has vowed to prevent it from passing under his leadership.

Second, and more importantly, we must begin moving toward fundamental tax reform. We need to rip the current tax code out by the roots, and put in place a full, fair and balanced system. Unfortunately, some of my colleagues believe we need to wait for the Democrats to agree with us on this issue before moving forward; that’s less likely than Saddam Hussein renouncing violence and recognizing Israel. If President Bush had made the signature of Tom Daschle a requirement for passing his tax relief bill, we would still be waiting, and the economy would be even deeper in recession.

On April 15th, I became the first Member of Congress to sign the Voters for Tax Reform pledge, sponsored by the National Retail Sales Tax Alliance. I signed this pledge to fight for tax reform so everyone I represent in the Congress knows my position on tax reform is clear and unambiguous. I am hopeful the rest of my colleagues will sign this important pledge as well, and we can finally begin moving forward on the grassroots momentum that has clearly been lacking on the tax reform issue in recent years.

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