The Job-Destroying Tax Increases Democrats Go to Great Lengths to Disguise

What Are Obama’s “Spending Reductions in the Tax Code”?

Speaking Wednesday in a highly touted speech on deficit reduction, President Obama managed to sneak in the following code to disguise his support for tax increases:

OBAMA: “If, by 2014, our debt is not projected to fall as a share of the economy – or if Congress has failed to act – my plan will require us to come together and make up the additional savings with more spending cuts andmore spending reductions in the tax code.” (“Obama’s Speech on Reducing the Budget,” The New York Times, 4/13/2011)

Translation: Obama wants to raise taxes, and raise them by a lot. To Democrats, letting families and small businesses keep more of what they earn is “spending” money that Democrats would rather spend on more big government:

“By any measure, ‘spending in the tax code’ is a curious phrase. It likens tax revenue to a source of money that ‘spend’ down its total when tax cuts are enacted and conversely ‘reduces spending’ when taxes go up, including cases in which temporary tax cuts are ended.

“Long gone are the days when Democrats employed frank language on taxes, as presidential nominee Walter Mondale did in 1984. ‘Mr. Reagan will raise taxes, and so will I,’ Mondale said in accepting the nomination. ‘He won’t tell you. I just did.’
“Obama left no doubt he believes some taxes should go up. But he couched it in careful terms designed to distance himself from proverbial ‘tax-and-spend Democrats’ almost as much as he distanced himself from what he suggested are heartless Republicans.” (Charles Babington, “Analysis: Obama Tiptoes on Proposes Tax Hikes,” Associated Press, 4/14/2011)

Given that Obama offered few details about what taxes he’ll raise, Americans must look at his record to figure out what his plan will likely be:

FY 2012 OBAMA BUDGET FEATURES $1.5 TRILLION IN TAX INCREASES ON SMALL BUSINESSES AND JOBS-CREATORS: “All told, the new taxes total $1.5 trillion over 10 years — ranging from new levies on small-business owners and corporations to taxes on energy and banks. Passed as is, the Obama budget would make economic stagnation and 9% unemployment the status quo.” (Editorial Board, “Obama’s Gutless Budget Proposal,” Investor’s Business Daily, 2/14/2011)

FY 2011 OBAMA PROPOSAL SOUGHT $2 TRILLION IN TAX INCREASES: “President Barack Obama’s $3.8 trillion budget for the coming fiscal year raises taxes on businesses and upper-income households by $2 trillion over 10 years and cuts spending on programs with considerable political support, but will still leave the nation with $8.5 trillion in added debt over the next decade.

“The budget plan for fiscal 2011 calls for nearly $1 trillion in tax increases…”(Jonathan Weisman, “Wealthy Face Tax Increase,” The Wall Street Journal, 1/31/2010)

FY 2010 OBAMA BUDGET INCLUDED A PLAN TO LET CURRENT TAX RATES EXPIRE: “Mr. Obama will also call for letting the Bush tax cuts on income, dividends and capital gains lapse after 2010 for individuals who make more than $250,000 a year. But while the top rate for income would rise to 39.6 percent, the top rate for capital gains and dividends would be 20 percent.”(Jackie Calmes, “Obama Planning to Slash Deficit, Despite Stimulus Spending,” The New York Times, 2/21/2009)

These so-called “spending reductions in the tax code” that Obama intends won’t come close to closing the deficit—but they will destroy jobs and harm small businesses. Maybe that’s why Obama can’t talk about his tax increases the way workers and families speak:

“Eliminating the Bush tax cuts for the highest earners, however, will only put a small dent in the projected deficit.” (Carol Lee and Damian Paletta, “Obama Puts Taxes on Table,” The Wall Street Journal, 4/11/2011)

894,000 SMALL BUSINESSES TO SUFFER TAX HIKE UNDER OBAMA TAX PLAN.(Jonathan Karl, “Fact Checking the Tax-Cut Debate,” ABC News, 9/8/2010)

NATIONAL FEDERATION OF INDEPENDENT BUSINESSES: FIRMS OF 20 TO 250 EMPLOYEES MOST LIKELY TO BE HIT BY TAX INCREASE: “Bill Rys, tax counsel for the National Federation of Independent Business, said a survey of his organization found that the businesses most likely to be subject to the tax increase were those employing 20 to 250 workers.” (David Kocieniewski, “Tax Increase Would Hit Few Small Businesses,” The New York Times, 9/29/2010)

BUT OBAMA IS PUSHING AHEAD, DESPITE THE FACT THAT SMALL BUSINESSES “ACCOUNT FOR MORE THAN HALF OF ALL PRIVATE-SECTOR JOBS IN THE U.S.”: “And there are a lot of small businesses out there. Businesses organized as small businesses – also known as pass-throughs – now account for more than half of all private-sector jobs in the U.S., according to the paper.” (John D. McKinnon, “Tax Overhaul: For Small Companies As well As Big Ones,”The Wall Street Journal, 4/12/2011)