In a recent interview with 60 Minutes, President Obama said he intends to seek a “compromise” on the extension of Bush-era tax cuts which are set to expire at the end of this year. Such a compromise, according to the President, would likely involve extending the current tax rates for families and small businesses making less than $250,000, while raising the rate for higher-income earners.
While the President’s willingness to concede on the issue, at least partially, is encouraging, readers should understand that this proposal still represents a bad deal for Texans.
According to the Heritage Foundation, if the President’s proposal were to be enacted, the higher tax rates could cost Texas more than 50,000 new jobs every year, siphon off more than $20,000 in personal income per household, and send significantly more tax dollars to the federal government.
More specifically, Texas could:
– Lose, on average, 53,398 jobs annually;- Lose, per household, $20,208 in total disposable personal income;- See total individual income taxes paid by Texans increase by $38 billion.
While there is value to be had in working towards a compromise on certain issues, this is not one of them. The President’s proposal to raise taxes will damage our economy and cost taxpayers billions at a time when we can least afford it.
– Talmadge Heflin