Warning against the long-term effects that “trickle-down” taxes will have on the United States economy, House Financial Services Committee Chairman Jeb Hensarling (R-TX) released on Tuesday a response to President Barack Obama’s plan for increased taxes.
“Hardworking taxpayers deserve a path forward to financial independence, one that gives them more control over their finances,” Hensarling said. “Unfortunately, if President Obama has his way, hundreds of billions of dollars in new taxes will undeniably trickle down on to consumers. They’ll face fewer choices, higher costs and less economic freedom.”
Of particular concern to Hensarling is a new tax on lending that is contained in the President’s proposal.
“No amount of White House spin can hide the fact that President Obama’s plan is nothing more than a tax on mortgage loans, car loans and small business loans,” Hensarling said. “Consumers will find it harder and more expensive to buy cars, homes, major appliances, save for college or start a small business.”
Hensarling said the plan produces “two sets of rules — one for the wealthy who’ll never need a loan from a bank, and one for everyone else.”
“Raising taxes just gives Washington bureaucrats more control to inefficiently spend money without accountability,” Hensarling said. “Instead, we need to hold Wall Street and Washington accountable. … Let’s start by ending ‘Too Big to Fail’ and Washington bailouts. Let’s make sure the bankruptcy code is ready to resolve a large financial institution that gets into trouble so that its shareholders and creditors suffer the consequences of its failure – not U.S. taxpayers. Instead of hurting consumers, let’s implement prudent and sensible capital and liquidity standards on big banks so our economy is no longer exposed to the risk of systemic failure.”