House Republicans say they want to balance the budget in a decade with only spending cuts and no tax hikes.
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Sure, no tax hikes sounds great -- until the great budget battle engages on your personal turf, and you draw the line.
According to a compilation of 27 polls conducted between Nov. 26, 2010 and as recent as Sept. 16, 2011, U.S. voters prefer higher taxes over no tax hikes and strict spending cuts as a means to reduce the deficit.
Americans for Tax Reform claims that 205 House candidates and 36 Senate candidates, and 174 sitting House members and 34 sitting senators (there is obviously some overlap here) have signed its anti-tax pledge no tax rate hikes under any circumstances, and no reduction in deductions or credits without offsetting cuts in rates.
The new rules still require the House to pay for new entitlement spending but only with offsetting entitlement cuts tax hikes will no longer count.
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No matter how you slice it, though, tax hikes are probably part of the plan.
No sane politician is going to entertain the prospect of tax hikes before major elections.
Nevertheless, this or any income-based cutoff for tax increases no matter how carefully chosen or how appropriate hikes of any kind may be sends up barking up the wrong tree when it comes to thinking about fiscal policy.
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The report, with its mix of two thirds spending cuts and one third tax hikes, received support from 11 of 18 members, but no votes from House Republicans on the panel who opposed the tax increases.
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Some say tax hikes are to blame but U.S. tax rates are no worse than many countries.
The fiscal cliff matter which is a package of tax hikes and spending reductions that will go into effect in January if no budget deal is reached between the Obama administration and Congress has overshadowed significant issues that would likely be on the front burner of the market place at present.
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