“Republicans are showing their true colors on the deficit: First they cite the deficit as the reason we can’t provide a safety net to Americans who are looking for work in this tough economy —but then they say we should explode the deficit with unpaid-for tax cuts for special interests and the wealthiest one percent,” Manley said in prepared remarks.
Kyl told Fox News Sunday the $700 billion it would cost to extend the Bush tax cuts for those making more than $200,000 should not be offset because it would create a drag on an economy already struggling to strengthen after a historically rough recession.
“You should never raise taxes in order to cut taxes,” Kyl said. “Surely, Congress has the authority, and it would be right, if we decide we want to cut taxes to spur the economy, not to have to raise taxes in order to offset those costs.”
Kyl said spending increases are different and should be offset.
“You do need to offset the cost of increased spending,” he said. “But you should never have to offset the cost of a deliberate decision to reduce tax rates on Americans.”
Manley charged Kyl with playing politics ahead of the midterm elections.
“With millions of Americans still looking for work, this is a dangerous time for Republicans to be playing politics with our economy,” Manley said. “Republicans should put their political agenda aside, and start working with Democrats to cut taxes for small businesses and create jobs — before their insistence on protecting special interests drives us into a double-dip recession.”