Hensarling: "Democrat Commitment to Fiscal Responsibility?"

Via the RSC email (link):

Washington D.C.- Congressman Jeb Hensarling (R-TX), Chairman of the Republican Study Committee, noted that data released by the Congressional Budget Office (CBO) today makes clear that the tax relief passed by the Republican Congress must be made permanent in order for the deficit to continue to shrink. According to CBO’s projections, the deficit will shrink over $76 billion dollars (from $248 billion in FY06 to $172 billion in FY07) because of increased tax receipts.

“Americans want low taxes, and we will continue working to ensure that the tax relief that we passed is not reversed by the Democrats,” said Hensarling. “Most Democrats do not understand that while spending causes a deficit, tax relief is one of its cures. Any homemaker in America realizes that by keeping more of their own money, they will spend and save more.”

A strong national economy and near record tax receipts make clear that Republican tax relief and the pro-growth policies of the Republican Congress and President Bush are working. CBO estimated that government receipts were up 11.7% in 2006 – the second highest increase since 1981. Capital gains tax collections also continued to increase ($51 billion in 2003, $72 billion in 2004, $97 billion in 2005, $110 billion in 2006). In fact, in 2005 and 2006, capitol gains tax revenue nearly doubled initial forecasts – exactly the opposite of what Democrat leaders predicted.

“When Republicans lowered taxes for all Americans, Democrat leaders cried doom and predicted that tax relief would cause massive deficits,” said Hensarling. “In light of CBO’s numbers, Democrat leaders may want a moment to reconsider before they raise taxes on hardworking Americans. They can have their own opinions, just not their own facts. Tax relief, when structured properly, can reduce the deficit and in this case has done just that.”

Hensarling noted that Democrats face several critical decisions in the coming weeks:

“The Democrat majority can work with the President and Republicans in Congress to keep taxes low and balance the budget, or they can force working families in America to ante up even more money each year to Washington,” he said.

And…

“The Democrat majority can show their commitment to fiscal responsibility by working with the President and Republicans in Congress to thoughtfully reform Social Security, Medicare and Medicaid – which are on a fast track toward bankruptcy, or they can continue to deny that reality and threaten the fiscal security of each and every American by standing in the way of common-sense improvement.”