Hatch says higher taxes for top earners will make U.S. a 2nd rate nation

The top Republican on the Senate panel in charge of tax policy said the United States will become a second rate nation if top earners have to pay higher taxes.

"The fact of the matter is that you raise those taxes, and see what you're going to get. You let them go up, like the Democrats (want to) let them go up, and we'll more quickly become a second rate nation," Senator Orrin Hatch said Tuesday in an interview with CBS News.

President Obama and Republicans in Congress struck a deal last December to extend for two more years the tax cuts that had been set to expire at the end of last year. The compromise allowed for an extension of tax cuts for all income levels that were a signature of President George W. Bush's administration.

"The Bush tax cuts were proven to be effective in their own way," Hatch, the top Republican on the Senate Finance Committee, told CBS' Nancy Cordes.

Obama had wanted the tax cuts on the wealthiest earners to expire, effectively raising the rate on the top 2 percent of households to 39.6 percent from 33 percent. Republicans insisted on the lower rates for all earners.

The compromise included an agreement to extend unemployment benefits for 13 months, which Democrats had insisted on over the objection of Republicans.

The conservative Utah senator was sharply critical of the way Obama has been handling the economy and the federal budget, arguing the president had failed to move aggressively to cut government spending.

"They really believe that we can spend our way out of a recession," Hatch said of the president and Democrats in Congress.

President Obama said earlier Tuesday he is confident the U.S. would avoid a double-dip recession, urging Americans to be patient as the economy continued to recover from its low point in 2008.

The Labor Department last week said the economy added just 54,000 jobs in May, the smallest increase in eight months, and the unemployment rate rose to 9.1 percent in May from April's 9.0 percent.

Hatch also expressed support for Rep. Paul Ryan's proposal to transform the fee-for-service Medicare into a voucher system that patients would use to buy subsidized health insurance from private insurers.

"I think he's come up with something that would save Medicare where the president's approach is going to destroy ... Medicare, because they're not doing anything to solve these problems," Hatch said.

His budget proposal has been sharply criticized by Democrats.

[sdunnlevelrun]

regard Hatch, et al...
..looking for a few good reports to investigate the people they interview first!
..ask Hatch how will he benefit from raising/not raising rich on the rich..e.g. Hatch!
..ask Hatch, et al, did he receive a salary increase during the past years of economic decline..my decline/not his.
..I don't have the power to investigate myself/make laws for my 'kind'..
..I don't have the same healthcare he gave himself...I didn't get a COLA as he did..not am I able to obfuscate to the IRS, etc..and give myself added benefits such as limo service/air travel...
..did Hatch increase gov't spending with the aforementioned?..did how much increase of staff has he given himself..while talking piously and pompously about limiting governement? .. eliminating Department of Education, Energy, EPA, etc...while allowing his/their largest contributors to write the laws?
..just curious!...hippocrits, all..regardless of their polished stateman-like face time/relgious affiliations, etc.
..in search of a few true statemen..not the same o' professional narcissistic well-paid politician...there is a difference between statesman and politician!
..and quit going to war for big business unless you're the first in line to submit your name/your children/your grandchildren's name on the line for military service!...and don't woosy out by joining reserves!
..just weeped again while watching ABC In Memoriam..how many 20 yo Marines, etc does it take for one's conscious to break down!
..gimme a break, guyz

[ajvw]

Where's SKYK this morning? She's usually the first to SCREAM about the evil rich causing her pitiful existance.

[babooph]

The new feudal state is great for the idle rich& their future generations of trust fund parasites,partying hard with their untaxed ,unearned income,8 years of idiotic Bush years made it so much better for them,but Hatch knows their GREED is not yet sated...plenty of suckers will support him..

[justme2012]

You mean like those "generation skipping" tax loopholes that rich people like Obama are using to protect his kid's wealth??

Is that a good example of which you speak?

[jimbom121]

No tax hikes for the rich...instead lets reduce pay and add fees for the working class such as policemen & teachers. They caused all of our troubles, right?

[justme2012]

Actually, it would be much better to have a fair system of taxes where everyone is on equal ground. Set tax rates with NO government credits/deductions where government decides who is rewarded and for what. You can raise the rate to 90% but then the congress will give themselves and their buddies writeoffs that will still enable themselves to play little or no tax. The people hurt will be the small businesses who don't get the "special breaks".

It's easy to just raise the rates to appease those who know no better, but that is just a way to fool the masses.

[tellingthestory]

You have to love this man. Even when faced with he constant biased of the CBS reporter he told the truth and corrected everyone of her lies and Liberal propaganda talking points. The Democrats have all but ruined America and are determined to turn her into a second class state. Any idiot still supporting the lying thieving corrupted Demos is a straight up traitor to America.

[34sender]

No, you are a traitor to America, where we have political freedom.

Do you ever get tired of writing hate filled words? You spend your like engaged in hate speech.

That is tragic and pathetic all at once.

Thank God, you have only one vote -- and since you live in Texas, it doesn't matter if you have a problem with Democrats or not ... Texas isn't exactly a "swing state".

[34sender]

Should be ..."you spend your life engaged in hate speech..."

Like it or not, this is a pathetic way to live.

[34sender]

A Republican thinks raising taxes on the rich will ruin America?

Oh my! Have we ever heard such words before?

Please. If Grover Norquist is going to rule this country, the Republicans just need to tell us that's their plan and inform us we need to stop these election thingies, with all the freedom and liberty...

Damned hypocrites. Steal from the poor to make the rich richer, sickening.