Will House Dems Stop the Obama Tax Hike Before Congress Adjourns?

September 18, 2010

Will House Dems Stop the Obama Tax Hike Before Congress Adjourns?
Democrats Should Spare Working Families and Small Businesses From Tax Hikes

Washington- The days are dwindling until Congress adjourns and House Democrats still haven’t vowed to extend tax cuts to hard working families and small businesses. Instead of easing Americans’ financial burden, party leaders President Obama and Nancy Pelosi have proposed a job-killing tax hike on the nations’ largest employer –small businesses. If Congress passes Obama’s tax hike, Americans who are struggling to find jobs and small businesses who are barely keeping afloat would find themselves in an even bleaker economic situation. With time running out, will the out-of-touch majority spare struggling middle-class families and small businesses from any additional financial angst?

“The economy is already on life support thanks to the Democrat majority’s failed trillion-dollar stimulus and runaway spending spree,” said NRCC Communications Director Ken Spain. “Proving just how out-of-touch they really are, House Democrats are now preparing to pull the plug on small businesses by hitting them with the Obama tax hike. In a time of economic hardship, will Democrats spare hard working families and small businesses by vowing to extend any and all tax cuts?”

“Unlike large companies that pay corporate income taxes, small businesses typically are organized as “pass-through” entities, meaning they don’t pay taxes themselves, but instead pass the income through to their owners. They include partnerships, Subchapter S corporations and limited-liability companies.”

“But the new-found importance of such enterprises—regardless of their size—means raising individual tax rates could have significant economic impacts. This week, Moody’s Economy.com said raising taxes on higher earners would reduce GDP by 0.4 percentage points in 2011, while payroll employment would be 770,000 lower by mid-2012.” (John McKinnon, “When Big Business Enjoys Being Small,” Wall Street Journal, 9/18/2010)

Despite its evident failures, Democrats are still desperately trying to sell their failed trillion-dollar stimulus as a success:

“In a report being released Friday by Vice President Joe Biden, the White House pushes back against criticism of its $814 billion stimulus program and highlights 100 projects that it says are creating jobs and growing the economy.

“Republicans cite a nearly 10 percent unemployment rate in arguing that the stimulus has been a costly failure.” (Darlene Superville, “White House defends stimulus, highlights projects, Associated Press, 9/17/2010)

It’s abundantly clear House Democrats don’t have the wherewithal to revive the struggling economy, but will they really go as far as increasing taxes in one of the worst recessions in generations?

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