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Dems are Blocking Small Business Jobs Despite Weak Economy

April 20, 2012

Economic Data and Polling Confirm Weak Economy, But Democrats are Still Standing in the Way of Small Businesses and New Jobs for Middle Class Families

  • Yesterday 86% of House Democrats voted against a 20 percent tax cut for small businesses that would create hundreds of thousands of new jobs.
  • While Democrats continue to stand in the way of America’s job creators, the nation’s economic picture looks bleak and unemployment remains sky-high, with some predicting that the economic malaise of the Obama economy may be a new normal.
  • The Democrats’ fight against pro-growth policies suggests they are tone-deaf to the concerns of American workers and families who remain pessimistic about the economy and have to live with economic difficulty every day.

Yesterday 86% of House Democrats voted against a 20 percent tax cut for small businesses that would create hundreds of thousands of new jobs:

86% OF HOUSE DEMOCRATS VOTE AGAINST SMALL BUSINESS TAX CUT:Final Roll Call: 235-173. (Roll Call 177, Clerk of the U.S. House, 4/19/2012)

OBAMA THREATENS VETO OF SMALL BUSINESS TAX CUT: (Alan Fram, “White House Threatens to Veto GOP Business Tax Cut,” Associated Press, 4/18/2012)

JOB CREATORS WITH LESS THAN 500 EMPLOYEES WOULD GET A 20% TAX CUT: (Susan Crabtree, “White House Threatens to Veto Cantor’s Small-Business Tax Cut,”The Washington Times, 4/17/2012)

STUDY: TAX CUT WOULD CREATE JOBS, BOOST “MOM AND POP STORES” AND “SMALL MANUFACTURING AND SERVICE COMPANIES”: “The Cantor plan would lower tax rates on millions of small businesses, from mom and pop stores to small manufacturing and service companies, allowing them to invest, expand, and hire workers.” (Gary Robbins, Fiscal Associates Inc., “Analysis of Small Business Tax Cut,” YG Network, April 2012)  

194,000 NEW JOBS TO BE CREATED BY SMALL BUSINESS TAX CUTS: “Over time the plan would yield $112 billion more in GDP, create 194,000 jobs, and lead to a 2.24% increase in business capital. Our cost benefit analysis shows that this increased economic activity and growth would offset much of the government revenue loss.” (Gary Robbins, Fiscal Associates Inc., “Analysis of Small Business Tax Cut,” YG Network, April 2012)

PLAN WOULD CREATE 100K SMALL BUSINESS JOBS A YEAR ONCE FULLY IMPLEMENTED: “Once fully implemented, over time the 20% small business tax cut will create more than an average of 100,000 jobs per year.” (Gary Robbins, Fiscal Associates Inc., “Analysis of Small Business Tax Cut,” YG Network, April 2012)

While Democrats continue to stand in the way of America’s job creators, the nation’s economic picture looks bleak and unemployment remains sky-high, with some predicting that the economic malaise of the Obama economy may be a new normal:

CBO: “FOOD STAMP ROLLS TO GROW THROUGH 2014”: “The Congressional Budget Office said Thursday that 45 million people in 2011 received Supplemental Nutrition Assistance Program benefits, a 70% increase from 2007. It  said the number of people receiving the benefits, commonly known as food stamps, would continue growing until 2014.” (Damian Paletta, “Food Stamp Rolls to Grow Through 2014, CBO Says,” The Wall Street Journal, 4/19/2012) 

GAS PRICES HOVER NEAR $4, AT $3.891/GALLON: (“AAA’s Daily Fuel Gauge Report,” AAA, Accessed 4/17/2012) 

SMALL BUSINESS SURVEY: 72% ARE HOLDING OFF NEW HIRING OR LETTING WORKERS GO: (Small Business Outlook Survey, U.S. Chamber of Commerce, March 2012) 

52% OF SMALL BIZ BLAME ECONOMIC UNCERTAINTY, 33% BLAME WASHINGTON FOR HIRING FREEZE: (Small Business Outlook Survey, U.S. Chamber of Commerce, March 2012) 

OBAMA STIMULUS PROJECTION SAID UNEMPLOYMENT AT 5.8% NOW:“Recall that back in 2009, White House economists Jared Bernstein and Christina Romer used their old-fashioned Keynesian model to predict how the $800 billion stimulus would affect employment. According to their model—as displayed in the above chart, updated—unemployment should be around 5.8% today.” (James Pethokoukis, “The Big March Jobs Miss—and Why the Real Unemployment Rate Sure Ain’t 8.2%,” American Enterprise Institute, 4/6/2012) 

IN FACT, UNEMPLOYMENT IS 8.2%: (“Table A-15. Alternative measures of labor underutilization,” Bureau of Labor Statistics, 4/6/2012)

“THE MARCH JOBS REPORT EXTENDS THE LONGEST-STREAK OF 8%+ UNEMPLOYMENT SINCE THE GREAT DEPRESSION”: (Tweet from James Pethokoukis, The American, 4/6/2012) 

CONGRESSIONAL BUDGET OFFICE SAYS UNEMPLOYMENT WILL RETURN TO 5.3%, BUT NOT UNTIL 2021: (Annalyn Censky, “Unemployment Rate: How Low Can It Go?”, CNN Money, 4/4/2012) 

ECONOMISTS: NEW NORMAL UNEMPLOYMENT RATE MAY BE “6% AT BEST”: (Annalyn Censky, “Unemployment Rate: How Low Can It Go?”, CNN Money, 4/4/2012) 

The Democrats’ fight against pro-growth policies suggests they are tone-deaf to the concerns of American workers and families who remain pessimistic about the economy and have to live with economic difficulty every day: 

CBS/NY TIMES POLL: 38% OF AMERICANS SAY “PAYING EVERYDAY BILLS IS THEIR #1 ECON[OMIC] CONCERN”: (Tweet from Amy Walter, ABC News, 4/19/2012)

70% OF AMERICANS BELIEVE ECONOMY IS IN BAD SHAPE: (The New York Times/CBS News Poll, 4/13-17/2012)

39% OF AMERICANS SAY THEY’RE FALLING BEHIND IN THE OBAMA ECONOMY, 43% SAY THINGS HAVE NOT GOTTEN BETTER: (The New York Times/CBS News Poll, 4/13-17/2012)

47% FEAR THINGS WILL GET WORSE FOR THE NEXT GENERATION, INCLUDING 57% OF PARENTS WITH ADULT CHILDREN: (Brian Montopoli, “Five Takeaways from the CBS/NYT Poll,” CBS News, 4/18/2012)