Deficit's ramifications worry Kind U.S. Rep. Ron Kind says Bush's tax cut will create a larger deficit and lead to higher interest rates By Monique Balas News-Chronicle President Bush's recent tax cuts - his third in three years - will create a historically large deficit and see average working families pay up to $3,500 more in debt taxes by the year 2011, said U.S. Rep. Ron Kind, D-La Crosse. He was in Wisconsin on Thursday to attend meetings and discuss his interpretation of the budget. The cuts will lead to a national debt of $7.5 trillion, Kind said. With spending far outweighing revenue, the deficit will be increased exponentially, hurting economic growth and job creation, he said. "It squeezes private capital, which is being used to make payments on the deficit as opposed to freeing it up for private investment," Kind said. "The deficits lead to higher long-term interest rates, which stifles growth, and it's a form of hidden tax. Businesses large and small pay higher rates to invest capital and create jobs." Money will be taken out of Social Security and Medicare trust funds to make up for spending in other areas, while critical programs will be cut, Kind said. "Many people in Washington are saying deficits don't matter anymore. Many of them ran specifically decrying deficits. What happened between then and now is a mystery to me," he said. The average working family in Wisconsin will have some tax relief with the child-tax credit, but that will expire in two years. "On the other hand, if it comes at the expense of increasing debt and higher long-term interest rates, a form of hidden tax, it's going to be more expensive," Kind said. The cuts will hurt the average citizen in a number of ways. "The average family is paying $4,500 a year in income taxes just to make interest payments on the national debt, and that will be increased to $8,000 in the next eight years," Kind said. Another significant drain is veteran health-care benefits, which will be slashed by $16 billion as a result of the cuts. Since the tax cuts have been approved, though, Kind said Congress can focus on areas where it has control over spending, such as discretionary spending measures that would bring the budget back into balance. "As the father of two little boys, I'm afraid we're going to be leaving a legacy of debt for our children and grandchildren to inherit when it's their turn to take over the leadership of our country."