White House: Dems’ Tax Hike Will Sock 114 Million Middle Class Families

July 25, 2012

Democrats Admit New Tax Hikes to Feed Their Spending Addiction Would Devastate the Middle Class, But Dems Are Still Using Them as a Political “Weapon”

A new Obama administration report admits that the tax hikes being pushed by congressional Democrats would raise taxes on 114 million middle class families.
Meanwhile, Democrats are rooting for tax hikes and want to use them as a political “weapon” to feed their spending addiction.
Apparently Democrats just don’t understand that the last thing middle class families and small businesses need in this weak economy is a job-destroying new tax hike.

A new Obama administration report admits that the tax hikes being pushed by congressional Democrats would raise taxes on 114 million middle class families:

“WHITE HOUSE WARNS OF $1,600 TAX HIKE ON 114 M[ILLION] MIDDLE CLASS FAMILIES” IF CURRENT RATES AREN’T EXTENDED: (Jonathan Easley, “White House Warns of $1,600 Tax Hike on 114M Middle Class Families,” The Hill, 7/24/2012)

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

Meanwhile, Democrats are rooting for tax hikes and want to use them as a political “weapon” to feed their spending addiction:

NO. 2 SENATE DEMOCRAT: TAX HIKES AND CUTS TO DEFENSE ARE A LOADED “WEAPON”: “Democrats believe Republicans might be willing to compromise once the spending cuts and tax increases are felt.

“‘That may be the only way to bring some Republicans into a position of talking,’ Sen. Richard J. Durbin of Illinois, the assistant Democratic leader, said late last week. ‘We’re not going to unload our weapons at this point.’” (Lisa Mascaro, “Congressional Democrats Dig In on Fiscal Cliff Scenario,” Los Angeles Times, 7/16/2012)

“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)

FEDERAL RESERVE CHAIRMAN BEN BERNANKE: IF DEMS GET THEIR WAY “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…” (Bernanke testimony before the Senate Banking Committee, Federal Reserve Web site, 7/17/2012)

Apparently Democrats just don’t understand that the last thing middle class families and small businesses need in this weak economy is a job-destroying new tax hike:

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)

$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)

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)