This policy has largely been driven by a bipartisan

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Unformatted text preview: carbon. Tax increases could undermine economy because when people are taxed they have less money to spend to purchase goods. They also have less money purchase goods if their taxes are higher. When taxes are higher businesses have less money to invest and to higher workers. Workers themselves may have less of incentive to work because the government will collect more and more taxes from their paychecks. All of this reduced spending by businesses and consumers will reduce economic activity, threatening the economy. 2|Page Taxes Bad DA BDL Glossary Consumer. A consumer is an individual person who purchases a product. Draconian. Draconian means extreme. Fuel tax. A fuel tax is a tax on gasoline or other motor fuels such as diesel. Stimulus. W hen the government spends a lot of money it is considered to be a stimulus because that expenditure of money means that more money is available in the economy to buy goods and stimulate economic activity. Taxes. A tax is the percentage of a person’s income or price of a good that is paid to the government. 3|Page Taxes Bad DA BDL Taxes Bad Disadvantage Shell A. Uniqueness -- No tax increases now New York Times, 2012 (May 11, “House Approves $310 Billion in Budget Cuts,” Democrats said Republicans had become captives to a pledge never to raise taxes, fois ting on Congress a draconian plan that “asks more from those who have less and less from those who have more,” as Representative Steny H. Hoyer of Maryland, the No. 2 House Democrat, put it. B. Link -- Infrastructure spending is paid for out of general tax revenues. Since there is no more money in the coffers, the plan would result in a tax increase Edward Glaeser, an economics professor at Harvard University, 2012 (Bloomberg, February 14, “Spending Won’t Fix What Ails US Infrastructure,” The stimulus delivered a dollop of highway spending provided with general tax dollars, and the Congressional Budget Office projects that the Trust Fund will be broke by 2014. Yet Congress is now promoting a vast new road spending bill. The budget the president presented yesterday supports paying for infrastructure with “current user-financed mechanisms,” but also proposes tapping “part of the savings from ending the war in Iraq and winding down operations in Afghanistan,” which just means using general tax revenue to pay for highways. 4|Page Taxes Bad DA BDL Taxes Bad Disadvantage Shell C. Impact -- Tax increases will slow growth and cause unemployment William W. Beach, Director of the Center for Data Analysis (CDA) at The Heritage Foundation, 2010 (September 20, 2010, “Obama Tax Hikes: The Economic and Fiscal Effects,” Center for Data Analysis economists estimated the likely economic and fiscal effects of the Obama tax plan by introducing it into a model of the U.S. economy that leading government agencies and Fortune 500 companies use to produce economic forecasts. This economic...
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