Forget the Ditch—Dems Want to Drive the Economy Off a Cliff

July 18, 2012

As Dems Continue Threats to Hike Taxes and Gut Defense Jobs, Fed Chairman Warns Democrats Could Cause Another Recession

According to Federal Reserve Chairman Ben Bernanke, as tough as our economy is now, things could get much worse if Democrats follow through on their plan to hike taxes and gut defense jobs.
That hasn’t stopped Democrats from threatening to drive the economy off a cliff if they don’t get their way on massive new tax increases to feed their spending addiction.
As Democrats play political games with the nation’s economy, job creators are begging Democrats for relief from an economically destructive plan that has already cost jobs.

According to Federal Reserve Chairman Ben Bernanke, as tough as our economy is now, things could get much worse if Democrats follow through on their plan to hike taxes and gut defense jobs:

FEDERAL RESERVE CHAIRMAN BEN BERNANKE: ECONOMY “COULD BE ENDANGERED” BY DEM TAX HIKES, DEFENSE CUTS: “…fiscal decisions should take into account the fragility of the recovery. That recovery could be endangered by the confluence of tax increases and spending reductions that will take effect early next year if no legislative action is taken.” (U.S. Senate, Committee On Banking, Housing, And Urban Affairs, Hearing, 7/17/2012)

“RECESSION WOULD OCCUR EARLY NEXT YEAR”: “The Congressional Budget Office has estimated that, if the full range of tax increases and spending cuts were allowed to take effect–a scenario widely referred to as the fiscal cliff–a shallow recession would occur early next year…” (U.S. Senate, Committee On Banking, Housing, And Urban Affairs, Hearing, 7/17/2012)

“ADDITIONAL NEGATIVE EFFECTS LIKELY TO RESULT FROM PUBLIC UNCERTAINTY”: “These estimates do not incorporate the additional negative effects likely to result from public uncertainty about how these matters will be resolved.” (U.S. Senate, Committee On Banking, Housing, And Urban Affairs, Hearing, 7/17/2012)

DEMOCRATS’ ROADMAP TO RECESSION:

710,000 JOBS 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)

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)

EMPLOYERS HIRING 25% OF WORKFORCE WOULD BE HIT BY TAX HIKES UNDER DEMOCRATS’ PLAN: (Susan Eckerly, “Letter Urging Congress to Hold a Vote Extending All of the Current Individual Tax Rates,” NFIB, 9/21/2010)

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)

$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)

That hasn’t stopped Democrats from threatening to drive the economy off a cliff if they don’t get their way on massive new tax increases to feed their spending addiction:

“OBAMA: GOP DROVE THE COUNTRY INTO A DITCH”: (Jillian Rayfield, “Obama: GOP Drove the Country Into a Ditch. ‘Now They Want the Keys Back,’” Talking Points Memo, 5/14/2010)

“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)

BUT DEMS INSIST WORKING FAMILIES PAY THE PRICE FOR THEIR SPENDING ADDICTION:

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)

As Democrats play political games with the nation’s economy, job creators are begging Democrats for relief from an economically destructive plan that has already cost jobs:

CEO OF BOEING: COMPANY HAS ALREADY BEEN FORCED TO “TRIM EMPLOYMENT IN CERTAIN PLACES”: (Josh Cable, “Survey: Slow Recovery, Threat of ‘Fiscal Cliff’ Dim CEO Optimism,” Industry Week, 6/20/2012)

NFIB: $500 BILLION TAX INCREASE FOR SMALL BUSINESSES: “Seven small business tax rates are set to expire at the end of the year. All this adds up to an almost $500 billion tax increase for small businesses. Congress needs to address these and other tax issues before small businesses are pushed over the fiscal cliff by what could be the largest tax increase in history.” (“Taxmageddon is coming to Main Street,” NFIB, Accessed 07/16/2012)

U.S. CHAMBER OF COMMERCE: PENDING TAX HIKES ARE “PROLONGING UNCERTAINTY AMONG SMALL BUSINESSES”: “Washington’s policies are not meeting our country’s fiscal challenges and are prolonging uncertainty among small businesses… Washington can restore confidence for small businesses in this country by addressing the fiscal cliff, removing regulatory barriers, increasing energy production, and starting over on bipartisan health care legislation.” (U.S. Chamber Of Commerce, Small Business Survey, 7/16/12)

SMALL BIZ SURVEY: 90% CONCERNED ABOUT COMBINATION OF TAX HIKES AND CUTS TO DEFENSE JOBS: “90% are concerned about the impending fiscal cliff and are worried that Congress will fail to take action to prevent it.” (U.S. Chamber Of Commerce, Small Business Survey, 7/16/12)

BUSINESS ROUNDTABLE: “WILL SPAWN A DANGEROUS CRISIS”: “Without effective action soon, this uncertainty will spawn a dangerous crisis, threatening our economy, businesses and workers. … We are seeing already the negative effects from this situation… Washington inaction is generating uncertainty that is dampening U.S. economic growth and job creation.” (Business Roundtable, Letter To Congress, 7/17/12)

NEW YORK TIMES: JOB CREATORS WORRIED THAT DEMOCRATS’ PLAN HAS “ALREADY BEGUN TO CAUSE COMPANIES TO HOLD BACK ON HIRING AND INVESTMENTS”: “…business leaders and policy makers are growing concerned that the tax increases and government spending cuts set to take effect at year’s end have already begun to cause companies to hold back on hiring and investments.” (“Fear Of Year-End Fiscal Stalemate May Be Having Effect Now,” The New York Times, 7/11/2012)