10th Congressional GOP candidates shun tax increases

The five Republicans in the 10th Congressional District race want nothing to do with letting Bush-era tax cuts expire, and the three Democrats in the race tread carefully when considering the idea.

Democrats favor a reform in the tax code and tend to agree spending should be addressed before tax increases are considered.

Republicans are united against taxes as an answer, saying lower taxes will stimulate the economy and ultimately produce more revenue.

Candidates were asked in a Daily Herald questionnaire their views on rolling back cuts approved under Bush on Americans making more than about $200,000 a year, allowing capital gains taxes to revert to the original 20 percent and extending the current estate tax.

On the Republican side, Paul Hamann, an electrical engineer from Lake Forest, said he would not make any major change to the current tax structure. Hamann said he would allow the current estate tax rates to continue, but there are no specific tax increases he would support.

He contended, however, the U.S. is on an "unsustainable path" with the federal tax cuts because estimates show there won't be enough revenue in 20 years to fund national defense and other programs.

Economist Dick Green of Winnetka, pediatrician Arie Friedman of Highland Park, businessman Robert Dold of Kenilworth, and state Rep. Elizabeth Coulson of Glenview all want to keep the Bush tax cuts in place, opposed an increase in capital gains tax and favored doing away with the estate tax.

"Raising taxes in a recession is foolhardy," Green said. "You cannot tax and spend your way to prosperity." Targeted tax cuts pay for themselves by stimulating economic growth, he added.

"Nevertheless, there should be a freeze on nondiscretionary spending with zero-based budgeting for all programs," he said.

Friedman said rolling back tax cuts would have a negative impact on job creation, and suggested a capital-gains tax holiday to spur jobs. He said he would not support tax increases under any circumstances except a national security crisis.

Tax cuts increase revenue by spurring economic growth but that isn't enough, he contended.

"As a general principle, there should be a federal spending freeze and a true line-by-line evaluation of the budget with a mind to eliminating any spending that does not absolutely benefit the American people," Friedman said.

Dold said he supports making the Bush tax cuts permanent and does not want to raise the capital gains tax from its current level.

He said he does not favor any tax increases and would focus on cutting spending. He said he would eliminate the 26 programs deemed ineffective or not performing by the Office of Management and Budget. Dold also favors cutting the estate tax rate and repealing it, if possible.

Coulson says the tax cuts should not be rolled back and capital gains taxes should remain where they are. She favors repealing the estate tax.

Stimulus spending has not produced advertised results and "must be cut back in the future," she said.

On the Democratic side, Highland Park attorney Elliot Richardson supports a rollback of Bush tax cuts because too much is being asked of working families.

"We need to simplify the tax code and ensure that it both stimulates the economy, generates revenue and protects Americans from overly burdensome tax increases," he said.

He does not support increases in capital gains tax and says they should be eliminated for small and medium businesses. Richardson says the estate tax creates "disincentives" to create jobs and expand investment.

"Congress must temporarily repeal the estate tax until we can responsibly reduce estate taxes and increase the allowed exemptions," he said.

Business consultant Dan Seals of Wilmette says he does not support any tax hikes or spending cuts in the short term because they may hinder the recovery.

"I believe spending should be addressed before we approach taxes and I would like to see any tax increases happen as part of a tax code overhaul." He advocated a simpler, flatter tax code. He contended the Bush tax cuts are unfair, and the estate tax should continue. Capital gains should stay where it is, he added.

"Both as a matter of policy and politics, I think it only makes sense to look at taxes after the government has demonstrated an ability to tighten its belt," according to Seals. "That wouldn't make taxes any more popular, but it will make them more acceptable."

State Rep. Julie Hamos of Wilmette, also favored a "genuine reform," in the tax code in which any changes reflect the economic health of the country.

"One year ago, we were in the throes of the most severe recession since the Great Depression, and we will need to address the expiration of the tax cuts in the context of where we stand at the end of 2010, which will hopefully be a much stronger position," she said.

"I strongly believe in long-term, comprehensive tax reform that takes into account spending priorities and true fiscal discipline, something that was lacking in the Bush tax cuts."