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Ryan: Yes, we need tax hike, but not now
By Karl Henkel
YOUNGSTOWN
U.S. Rep. Tim Ryan of Niles, D-17th, says additional tax revenue is needed to fix the nation’s mounting deficit.
But he does not believe now is the time for tax increases.
“In principle yes, I support a progressive tax code,” Ryan told The Vindicator. “But I’m concerned about doing it too soon.”
President Barack Obama this week proposed tax increases on those making more than $250,000 and an additional “millionaires tax.”
His proposal, which House Republicans publicly and immediately nixed, could raise taxes on the wealthiest Americans beginning in 2013.
Ryan said that may be too soon.
“I’m not sure if even 2013 would be a good idea,” he said. “At some point when we get into a recovery and we start seeing some solid growth, then we are going to have to do it.”
The nation is currently in a recovery, albeit an incredibly slow one. The economy grew 0.7 percent during the first six months of 2011, according to the Commerce Department.
Economists expect it to grow by 2 percent the remainder of the year.
Ryan said the federal government needs to adjust its spending and that cuts alone won’t chip away at the $14.7 trillion deficit.
“We can’t cut our way to prosperity,” he said. “Businesses can’t do that; government can’t do that.”
Ryan said he understands those in Congress who are adamantly against tax hikes — it’s “good politics” — but said it’s an unrealistic goal.
“If we can’t get help from these folks, we’re going to be in a hell of a bind as a country,” he said.
Ryan continues to be pro-investment, especially when it comes to infrastructure.
He said the president’s jobs proposal, The American Jobs Act, the details of which were also released this week, calls for too much investment in additional unemployment benefits and not enough to build or update roads and bridges.
“Things need to get done, especially in bad economy,” Ryan said. “But if the government is going to do something, let’s get people back to work.”