Strong growth—until taxes go up

Strong growth—until taxes go up
New economic data show “an economy that is expanding,” Heritage experts James Sherk and Rea Hederman write in a new report. Unemployment remains low after the 50th straight month of job creation, and the Gross Domestic Product is increasing at a faster-than-expected clip.

But there’s a threat to this economic strength on the horizon. Not only are the Bush tax cuts set to expire, but Sherk and Hederman warn about the impact of the Alternative Minimum Tax, which could hit millions more Americans next year.

“Congress needs to extend the patch to the Alternative Minimum Tax to prevent millions of Americans from paying higher tax bills,” they write. “Furthermore, Congress should not raise taxes on working Americans to pay for the AMT patch extension. Instead, Congress should look to restrict spending instead of offsetting tax cuts with additional tax hikes.”