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Senator Cornyn�s E-Newsletter
*A Road Map for Real
Bipartisan Tax Reform*
*A truly balanced approach would have to include
major spending cuts and entitlement reformsIf the president is going to
claim a mandate for governing, then he has a responsibility to offer a
genuine solution to America�s fiscal challenges.�*
op-ed appeared in *The Dallas Morning News [link 1]*.*
*�Click here [link 3] to watch a video outlining the
severity of the fiscal challenges facing our nation.*
people have spoken �and once again, they have given us divided government
Divided government means that neither Democrats nor
Republicans will be able to pass legislation along strictly partisan
lines. It means that bipartisan compromise is the only way to avoid
In the past, divided government has yielded some
historic results. It produced landmark tax reform in 1986 and a sweeping
overhaul of our welfare system 10 years later.
Of course, we�ve
had divided government since January 2011, and thus far it has produced
legislative stalemates and bitter recriminations. Why should we expect
things to be any different this time around?
Quite simply, I
believe there is now a bipartisan recognition that our current fiscal path
is unsustainable. We cannot keep running trillion-dollar deficits. We
cannot keep postponing structural changes to our largest entitlement
programs. And unless we are happy with a tax code that wastes economic
resources, stifles job creation and promotes crony capitalism, we
cannot keep delaying genuine tax reform.
We don�t have to speculate
about what bipartisan tax reform might look like.
In 2010, two
separate bipartisan commissions recommended lowering the rates and broadening
the base, which is exactly what Congress did in 1986.
we can implement 1986-style tax reform, we need to prevent the largest
tax increase in American history, which is scheduled to take effect on
New Year�s Day and could easily trigger a new recession.
Republicans are asking is to maintain the current rates until we adopt
real bipartisan tax reform. Remember: These are the same tax rates
that President Barack Obama signed into law two years ago. They are the
same tax rates that received 81 votes in the Senate at a time when
U.S. economic growth was much stronger than it is today. Indeed, if you
were worried about the economic impact of a massive tax hike in 2010,
you should be even more worried about it in 2012.
The president says
raising tax rates would help solve our long-term debt problem, but
it�s hard to take this argument seriously, for two reasons.
According to the president�s own Treasury Department, the tax increases
he is advocating would generate $85 billion in new revenue next year.
By comparison, the monthly budget deficit in October was about $120
billion, and the total deficit for fiscal year 2012 was roughly $1.1
In other words, the proposed tax hikes would still leave us
with a trillion-dollar deficit. Meanwhile, they would do significant
damage to our fragile economic recovery.
Simply put: We cannot tax
our way back to budget surpluses and economic prosperity. Without major
spending cuts and entitlement reforms, we will continue running huge
deficits, regardless of what we do on the revenue side.
our unfunded liabilities over the next 75 years total nearly $100
trillion �that�s trillion, with a T. Those liabilities are separate from
our $16 trillion national debt. In the most recent fiscal year, the
federal government spent about $220 billion on interest payments
Under the president�s latest budget proposal, the annual cost of
debt service would reach $804 billion in 2022, an amount greater than
total U.S. defense spending in 2012.
This brings me to my second
point: Four years after taking office, the president still has not given us
a realistic plan for deficit and debt reduction. Last February, his
Treasury secretary told the Republican chairman of the House Budget
Committee: �We�re not coming before you to say we have a definitive
solution to our long-term problem. What we do know is, we don�t like
It�s easy for the president to talk about the need for a
�balanced approach.� But a truly balanced approach would have to include major
spending cuts and entitlement reforms. There�s nothing balanced about
continuing to spend money we don�t have and piling up trillions of
dollars in new debt. If the president is going to claim a mandate for
governing, then he has a responsibility to offer a genuine solution to
America�s fiscal challenges. Until he offers such a plan, his posturing
over the deficit should not be taken seriously.
Texas Times Column*
*November 20:�*A�Message of Thanksgiving
*September 14:**�*Cowtown On The Open Seas: Commissioning
the USS Fort Worth [link 5]
August 29:�*A Texas Town with an
Abundance of Books [link 6]
*August 10:�*Back To School On The Texas
Frontier [link 7]
*July 27:�*Don�t Mess With Texans� Hard-Earned
Success [link 8]
*July 2:�*Remembering The Sacrifices Behind Independence
Day [link 9]
June 15:�*The Hero From Eden, Texas [link 10]
24:� [link 11]*A Bittersweet Trip on the Honor Flight Network [link
May 14:*�Saluting Unsung Heroes: Military Spouses [link
April 30:�*The Hero of Cinco de Mayo [link 14]
the Life and Legacy of Hector P. Garcia [link 15]
Texas Bluebonnet: A Blossom of Renewal [link 16]
November*�28**:�*Cornyn Offers Legislation to Fight National VA Claims
Backlog [link 17]
*November 28:�*Thousands of Ballots Unlikely to
Reach Military Voters [link 18]
November 28**:*�Cornyn Op-Ed: A Road
Map for Real Bipartisan Tax Reform [link 19]
Cornyn Congratulates John Steen On TX Secretary of State Appointment
*November 27:�*Senate Passes Cornyn-Blumenthal Child
Protection Act of 2012 [link 21]
*November 16:�*Cornyn Statement on Tragic
West Texas Train Collision [link 22]
*November 15:*�Cornyn: We
Need the Truth on Benghazi [link 23]
*November 15:�*Sens. Cornyn,
Warner Introduce Resolution Celebrating Diwali [link 24]
14**:�*Cornyn Statement on Sen.-Elect Ted Cruz Selection as NRSC Vice Chair
November 14*:�*Cornyn Statement on Senate Republican
Leadership Elections [link 26]
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