President Barack Obama’s plan to raise taxes on the nation’s top earners is a path to failure because it ultimately raises taxes on the job creators, Rep. Peter Roskam said.
Roskam, an Illinois Republican on the Ways and Means Committee, told Newsmax.TV in an exclusive interview that a report by accounting firm Ernst & Young confirms what Republicans already knew, which is “to raise taxes at the individual level is to raise taxes on job creators and it also confirms what we’re hearing from other elements within the Democratic Party.”
Roskam was referring to former President Bill Clinton’s statement that that the House, the Senate, and the President should not raise any taxes right now.
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Obama needs to focus instead on growing the economy by other means, Roskam said, but that’s unlikely to happen, although there might still be hope. “. . . I do think there’s an opportunity for clear-thinking Democrats and Independents and Republicans to join together to make sure that the president’s failed tax policy does not become law,” he said.
Despite the Ernst & Young report showing Obama’s economic plan hurting wages, small businesses, and cooling investment capital, “Obama has made a decision and that is to pursue a course, a fiscal course over the past three and a half years that has now really ended in failure,” Roskam said.
“All the objective measures are disappointing,” he continued. “Unemployment is higher than was promised during the stimulus. The credit rating of the United States has been downgraded and we’re in a pretty serious and longer recession than we need to be. So what is the president’s approach? Rather than dealing with the economic reality of the situation that he’s created, it is to move into politics of division and to criticize people who are successful.”
Roskam said the House is “very close” to having a serious debate on a long-term solution to the tax question, with a push for a transformed tax code to come in January if Mitt Romney is elected.
“The last time there was a substantive effort . . . was back in 1986,” he said. “That was the last big tax reform push under President Reagan’s leadership. We have an opportunity in this country to transform our tax system to one of the least competitive tax jurisdictions in the world, to transform it into one of the most competitive tax jurisdictions.”
“Why does competition matter? Competition matters because 95 percent of the world’s consumers are out of the United States and we’ve had to condition American businesses to compete and sell American products abroad. One of the best ways to do that is through the tax code,” he said.
“So the House for the past year and a half has been doing very much the type of ground work that’s necessary in order to build a record to change the tax code,” Roskam continued. “So my prediction is you’re going to see a very big push, particularly if Governor Romney is elected, a very, very big push beginning in January of next year to completely transform the tax code.”
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