#StoptheTaxHike: 700,000 Jobs Are At Stake

New Study Shows Democrats’ Latest Tax Hikes to Feed Their Spending Addiction Would Destroy Jobs and Weaken the Economy

• A new study shows that the Democrats’ latest proposed tax hikes to feed their spending addiction will destroy 700,000 jobs and take a harsh toll on the economy.
• The study comes as Democrats refuse to budge on their latest tax hike proposal even though it would take more money from families and small businesses at a time when they can least afford it.
• The Democrats’ insistence on new tax hikes contradicts President Obama’s own promise not to raise taxes in a weak economy. 

A new study shows that the Democrats’ latest proposed tax hikes to feed their spending addiction will destroy 700,000 jobs and take a harsh toll on the economy:

710,000 COULD BE DESTROYED BY DEMOCRATS’ TAX HIKE PLAN: (Robert Carroll and Gerald Prante, “Long-Run Macroeconomic Impact of Increasing Tax Rates on High-Income Taxpayers in 2013,” Ernst & Young, July 2012, Appendix C)

$201 BILLION HIT TO THE ECONOMY: (Robert Carroll and Gerald Prante, “Long-Run Macroeconomic Impact of Increasing Tax Rates on High-Income Taxpayers in 2013,” Ernst & Young, July 2012, Appendix C)

1.8% DROP IN WAGES: “Real after-tax wages would fall by 1.8%, reflecting a decline in workers’ living standards relative to what would have occurred otherwise.” (Robert Carroll and Gerald Prante, “Long-Run Macroeconomic Impact of Increasing Tax Rates on High-Income Taxpayers in 2013,” Ernst & Young, July 2012)

(Robert Carroll and Gerald Prante, “Long-Run Macroeconomic Impact of Increasing Tax Rates on High-Income Taxpayers in 2013,” Ernst & Young, July 2012, Appendix C)

The study comes as Democrats refuse to budge on their latest tax hike proposal even though it would take more money from families and small businesses at a time when they can least afford it:

DEMOCRATS GO ALL IN ON NEW TAX HIKES:

“DEMOCRATS THREATEN TO GO OVER ‘FISCAL CLIFF’ IF GOP FAILS TO RAISE TAXES”: (Lori Montgomery, “Democrats Threaten to Go Over ‘Fiscal Cliff’ if GOP Fails to Raise Taxes,” The Washington Post, 7/16/2012)

“SENIOR DEMOCRATS” ARE READY TO “PLUNGE THE NATION BACK INTO RECESSION” IF THEY DON’T GET THE TAX HIKES THEY WANT: “Emboldened by signs that GOP resistance to new taxes may be weakening, senior Democrats say they are prepared to weather a fiscal event that could plunge the nation back into recession if the new year arrives without an acceptable compromise.” (Lori Montgomery, “Democrats Threaten to Go Over ‘Fiscal Cliff’ if GOP Fails to Raise Taxes,” The Washington Post, 7/16/2012)

“RESULTING BLOW TO THE ECONOMY NEXT YEAR COULD BE ENORMOUS”: “…economy-shaking consequences if no deal is reached… resulting blow to the economy next year could be enormous.” (John Bresnahan and Manu Raju, “The Democrats Play Hardball,” Politico, 7/16/2012)

CBO: BLOW OF TAX HIKES AND SEQUESTER COULD PUSH COUNTRY INTO RECESSION: “The potential changes are part of the $607 billion so-called fiscal cliff of automatic spending cuts and tax increases that the Congressional Budget Office has warned could push the country into a recession.” (Richard Rubin, “Senate Democrats Split From Obama On Taxing Dividends,” Bloomberg, 7/15/2012)

FAMILIES AND SMALL BUSINESSES TO PAY THE PRICE FOR DEMS’ SPENDING ADDICTION:

JOINT COMMITTEE ON TAXATION: 940,000 SMALL BUSINESSES TO GET HIT BY DEMOCRATS’ LATEST TAX HIKE: “Congress’s Joint Tax Committee—not a conservative outfit—estimates that in 2013 about 940,000 taxpayers will have enough business income to meet Mr. Obama’s tax increase threshold.” (Editorial, “Off the Tax Cliff He Goes,” The Wall Street Journal, 7/10/2012)

MORE THAN HALF OF NET BUSINESS INCOME WILL BE HIT BY HIGHER TAX RATES UNDER OBAMA PROPOSAL: “And of the roughly $1.3 trillion in net business income, about 53% will get hit with the higher tax rates. This is because millions of businesses report their income as sole proprietors and subchapter S corporations that file under the individual tax code.” (Editorial, “Off the Tax Cliff He Goes,” The Wall Street Journal, 7/10/2012)

OBAMA’S NEW TAX HIKE WOULD HAVE SOME SMALL BUSINESSES PAYING HIGHER TAX RATES THAN GENERAL ELECTRIC AND J.P. MORGAN: “So Mr. Obama wants these businesses to pay higher tax rates than the giant likes of General Electric or J.P. Morgan. Does that qualify as ‘tax fairness’?” (Editorial, “Off the Tax Cliff He Goes,” The Wall Street Journal, 7/10/2012)

TAXMAGEDDON WILL COST AVERAGE FAMILY $4,138 IN 2013: (“Taxmageddon Costs Average Family $4,138 Next year,” The Heritage Foundation, 6/14/2012)

U.S. IS ON TRACK FOR FOURTH STRAIGHT YEAR OF TRILLION-DOLLAR DEFICITS: “The U.S. budget deficit grew by nearly $60 billion in June, remaining on track to exceed $1 trillion for the fourth straight year.” (“U.S. Government Records $904.2B Deficit Through June,” Associated Press, 7/12/2012)

$5.24 TRILLION INCREASE IN NATIONAL DEBT SINCE OBAMA TOOK OFFICE: (“The Daily History of the Debt Results,” Bureau of the Public Debt, Accessed 7/16/2012)

The Democrats’ insistence on new tax hikes contradicts President Obama’s own promise not to raise taxes in a weak economy:

OBAMA TO ENTREPRENEURS: “IF YOU’VE GOT A BUSINESS—YOU DIDN’T BUILD THAT. SOMEBODY ELSE MADE THAT HAPPEN.” (Kerry Picket, “Picket: (Video) Obama: ‘If You’ve Got a Business—You Didn’t Build That. Somebody Else Made That Happen,” The Washington Times, 7/15/2012)

LAST WEEK: OBAMA CLAIMS HIS PROPOSED TAX HIKES WILL SOMEHOW “ENCOURAGE BUSINESSES TO START UP AND CREATE JOBS”: “We need policies that grow and strengthen the middle class — policies that help create jobs, that make education and training more affordable, that encourage businesses to start up and create jobs right here in the United States. So that’s why I believe it’s time to let the tax cuts for the wealthiest Americans — folks like myself — to expire.” (“Remarks by the President on Extending Tax Cuts for Middle-Class Families,” The White House, 7/9/2012)

OBAMA SAID RAISING TAXES IN A WEAK ECONOMY WOULD BE DISASTROUS:

OBAMA IN DEC. 2010: TAX INCREASE “WOULD HAVE BEEN A BLOW TO OUR ECONOMY JUST AS WE’RE CLIMBING OUT OF A DEVASTATING RECESSION”: “…tax rates for every American were poised to automatically increase on January 1st… would have been a blow to our economy just as we’re climbing out of a devastating recession.” (President Obama, Remarks At Bill Signing, 12/17/10)

OBAMA IN NOV. 2010: “IF WE ALLOW THESE TAXES TO GO UP… THE ECONOMY WOULD GROW LESS”: “If we allow these taxes to go up, the result would be that a lot of people most likely would spend less, and that means that the economy would grow less.” (“Remarks by the President and Vice President to Chrysler Plant Workers in Kokomo, Indiana,” The White House, 11/23/10)

ANOTHER BROKEN OBAMA PROMISE: “YOU DON’T RAISE TAXES IN A RECESSION.”(“Obama: We Must ‘Help Elkhart Reinvent Itself,’” MSNBC, 8/5/09)

THE ECONOMY IS AS WEAK AS EVER:

WSJ: “ECONOMY HITTING ‘STALL SPEED,’ AGAIN”: “Another disappointing retail sales report prompted some economists to cut the second-quarter U.S. GDP again.

“Stephen Stanley, chief economist at Pierpont Securities, now sees 0.6% growth rather than 1% previously predicted. ‘As you can see, I am running out of room with regard to being above zero.’” (Min Zeng and Paul Vigna, “Economy Hitting ‘Stall Speed,’ Again,” The Wall Street Journal, 7/16/2012)

“ECONOMY HAS DOWNSHIFTED FROM MUDDLING TO NEAR-STAGNATION”: “ ‘The economy has downshifted from muddling to near-stagnation,’ says Stanley.” (Min Zeng and Paul Vigna, “Economy Hitting ‘Stall Speed,’ Again,” The Wall Street Journal, 7/16/2012)

“FEWER U.S. COMPANIES PLANNING TO HIRE”: (Jason Lange, “Fewer U.S. Companies Planning to Hire,” Reuters, 7/16/2012)

ECONOMISTS URGE NO NEW TAX HIKES WHEN ECONOMY REMAINS WEAK: “Carl Riccadonna, senior U.S. economist with Deutsche Bank, said the most important thing to do is to not re-impose any of the taxes when economic growth and hiring are still so weak.” (Chris Isidore, “Economists: Extend Bush Tax Cuts,” CNNMoney, 7/9/2012)