Within one year of being elected, Governor Scott Walker (R) reformed the state’s public sector pension system, eliminated a $3.6 billion budget deficit without raising taxes, saved taxpayers hundreds of millions of dollars, and helped create the conditions that have allowed Wisconsin’s economy to grow again. Meanwhile, thanks to the dysfunction in Washington, America continues to suffer high unemployment, out-of-control spending, and faces a historic tax hike that could send the country over a fiscal cliff.
Last week, Americans received more bad news on the country’s economic performance. According to the latest Department of Labor jobs report, the U.S. economy created only 69,000 net jobs in May, and the unemployment rate increased to 8.2 percent. To add insult to injury, it was also reported that employers created 49,000 fewer jobs than originally estimated in March and April. Put it all together, and we see that the U.S. economy is approaching stall speed.
If Washington doesn’t act, things could get much worse, not better. That’s because of a massive $494 billion tax increase set to hit on January 1, 2013. Known as “Taxmageddon,” the tax hike will be the result of the expiration of the 2001 and 2003 tax cuts, the termination of other tax policies, and the imposition of new taxes, such as those under Obamacare. Economists say that Taxmageddon will spell further doom for the U.S. economy, and this week, even former President Bill Clinton agreed that Washington should temporarily extend the 2001 and 2003 tax cuts. House Speaker John Boehner (R-OH) has said the House will vote on extending the tax policies before the November election, but President Barack Obama and Senator Majority Leader Harry Reid (D-NV) have so far ignored the pending crisis. Meanwhile, the economy is in limbo, waiting for Taxmageddon to strike. Continue Reading »
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