Prescribing the illness for the cure

Years before the 2008 financial crisis, economists and policy analysts began to sound alarm bells that we were headed for a financial crisis as a result of government debt spiraling out of control. We know now that they were right to urge caution, and today every American is painfully aware of the financial situation in our country, and the incredible damage that can be done in countries like Greece that allow their government deficits to grow irresponsibly large.

And we know the model all too well — government has a tendency to spend too much when times are good. But then when we hit a recessionary period, rather than ratchet back spending, our government spends even more in an attempt to “stimulate” the economy. And even after the failure of stimulus spending enacted by Congress, there are those in Washington who still insist that spending is the answer.

So how much more financial ruin do we have to endure before they figure out that too much spending is the problem, not the solution?

Even now, as our economy teeters on the brink of the fiscal disaster and we are frantically backpedaling, elected officials in Washington, D.C. are pushing for higher taxes and more spending as a solution to our deficit problem. They’re prescribing the illness as the cure.

Let there be no mistake, the financial conundrum that we currently find ourselves in is not the result of individuals or employers not paying what the present administration deems as their “fair share.” This is the result of years of irresponsible government spending made even worse by the spending spree that started the day our current president took office.

And now that the problem can’t be punted to the next administration, he is expecting us to pay for it.

Their proposal is to take the tax deductions and credits currently allowed to all industries, and eliminate them exclusively for American energy producers — which will inevitably lead to an increase in job losses across the country. Not only does the energy industry employ thousands of Montanans, it provides millions in tax revenue for our schools and infrastructure, and is an integral part of Montana’s economy.

If the current administration approves this proposal to increase energy taxes, they will be increasing operating costs for small businesses across America, many of which are having a hard enough time keeping their doors open from one month to the next. And for consumers, it will mean higher prices at the pump and more expensive electricity — the exact opposite of what we need for economic recovery.

To fix America’s financial insolvency, our elected officials need to look at themselves and the outrageous spending policies they are promoting — not just expect taxpayers and small business owners to bail them out and turn a blind eye while they allow the irresponsible spending to continue.

Rep. Daniel Zolnikov, R-Billings, represents House District 47. He is a member of the House Taxation Committee, House Federal Relations, Energy, and Telecommunications Committee, and the House Local Government Committee.