Democrats Own the Middle Class Recession

Democrats Own the Middle Class Recession

The Middle Class Shrinks to All-Time Low Due to the Obama Economy, and Democrats Would Make Things Worse With Tax Increases and Devastating Defense Cuts 

• New census data released Wednesday shows the middle class shrinking to an all time low and poverty levels remaining sky-high.

• Instead of easing the impact of the recession, Democrats’ failed policies have made life harder for working families: increasing healthcare costs, prolonging high unemployment and failing to solve the foreclosure crisis.

• Now Democrats are demanding job-destroying new tax hikes and devastating defense cuts that will make things even worse.

New census data released Wednesday shows the middle class shrinking to an all time low and poverty levels remaining sky-high:

“CENSUS: MIDDLE CLASS SHRINKS TO ALL-TIME LOW”: “The middle class lost ground again last year, falling to an all-time low in their share of how much income they take in, new census data released Wednesday showed.” (Carol Morello, “Census: Middle Class Shrinks to All-Time Low,” The Washington Post, 9/12/2012)

“HUGE DROP” FOR “WORKING CLASS,” “THESE ARE THE PEOPLE REALLY RAVAGED BY THE RECESSION”: “ ‘This is a huge drop,’ said Tim Smeeding, director of the Institute for Research on Poverty at the University of Wisconsin in Madison. ‘It’s the working class. Their pay rate has gone down, the number of hours that everyone in the house works has gone down, their homes have lost value. These are the people really ravaged by the recession.’” (Carol Morello, “Census: Middle Class Shrinks to All-Time Low,” The Washington Post, 9/12/2012)

“SECOND CONSECUTIVE ANNUAL DROP” IN MEDIAN HOUSEHOLD INCOME: “Real median household income in the United States in 2011 was $50,054, a 1.5 percent decline from the 2010 median and the second consecutive annual drop.” (Press Release, “Income, Poverty and Health Insurance Coverage in the United States: 2011,” U.S. Census Bureau, 9/12/2012)

“INCOME DECLINES HAVE CONTINUED LONGER” THAN IS TYPICAL: “Typically, median household income shows a decline for the first year of recovery after a recession. During the recovery from the latest recession, the worst downturn since the Great Depression, income declines have continued longer. The recession officially ended in 2009.” (Carol Morello, “Census: Middle Class Shrinks to All-Time Low,” The Washington Post, 9/12/2012)

“US POVERTY RATE 15 PERCENT; RECORD NUMBERS PERSIST”: (Hope Yen, “US Poverty Rate 15 Percent; Record Numbers Persist,” Associated Press, 9/12/2012)

46.2 MILLION PEOPLE BELOW THE POVERTY LINE IN 2011, “THE HIGHEST IN MORE THAN HALF A CENTURY”: (Hope Yen, “US Poverty Rate 15 Percent; Record Numbers Persist,” Associated Press, 9/12/2012)

PEW: “A RECOVERY NO BETTER THAN THE RECCESION”: (Rakesh Kochar, “A Recovery No Better Than the Recession,” Pew Research Center, 9/12/2012)

“DECREASE IN HOUSEHOLD INCOME FROM 2009 TO 2011” EQUALED DROP IN INCOME DURING THE RECESSION: “The decrease in household income from 2009 to 2011 almost exactly equaled the decrease in income in the two years of the recession. During the Great Recession, the median U.S. household income (in 2011 dollars) dropped from $54,489 in 2007 to $52,195 in 2009, a loss of 4.2%. By this yardstick, the recovery from the Great Recession is bypassing the nation’s households.” (Rakesh Kochar, “A Recovery No Better Than the Recession,” Pew Research Center, 9/12/2012)

Instead of easing the impact of the recession, Democrats’ failed policies have made life harder for working families: increasing healthcare costs, prolonging high unemployment and failing to solve the foreclosure crisis:

RISING HEALTHCARE COSTS SHOWCASE OBAMACARE’S BROKEN PROMISES:

“RISING HEALTH-CARE PREMIUMS HIT MIDDLE CLASS”: (“Rising Health Care Premiums Hit Middle Class,” CNBC, 9/11/2012)

PREMIUMS RISING FASTER THAN WAGES AND INFLATION: “U.S. health insurance premiums have climbed faster than wages and inflation this year, and look poised to accelerate in 2013, adding to voter concerns about soaring health-care costs ahead of November elections.” (“Rising Health Care Premiums Hit Middle Class,” CNBC, 9/11/2012)

PREMIUM HIKES WOULD HAVE BEEN EVEN HIGHER IF NOT FOR THE BAD ECONOMY: (Brianna Ehley, “Slow Economy Stunts Rise in Premium Costs,” The Fiscal Times, 9/12/2012)

“EXPERTS WARN RATES MAY CLIMB HIGHER NEXT YEAR”: (Chad Terhune, “Insurance Costs Rise 4%, May Go Higher in ’13,” Los Angeles Times, 9/12/2012)

“MANY EMPLOYERS HAVE SHIFTED MORE OF THOSE COSTS TO WORKERS”: “Still, even modest increases in health care costs are difficult to absorb for many businesses and workers struggling to cope with a sluggish economy. Health premiums have been on an unrelenting march upward for years, and many employers have shifted more of those costs to workers.” (Chad Terhune, “Insurance Costs Rise 4%, May Go Higher in ’13,” Los Angeles Times, 9/12/2012)

KAISER: CONSUMERS ARE FOREGOING MEDICAL TREATMENT BECAUSE OF BAD ECONOMY: “Part of the reason, they say, is that many consumers have decided not to go to the doctor or have elective surgery during the downturn because of higher out-of-pocket costs.” (Reed Abelson, “Health Care Premiums Rise Slightly,” New York Times, 9/11/2012)

FLASHBACK: OBAMA REPEATEDLY PROMISED TO REDUCE PREMIUMSBY $2,500: “Coupled with comprehensive reform, this could result in our nation saving over $2 trillion over the next 10 years, and that could save families $2,500 in the coming years — $2,500 per family.” (“Statement by the President After Meeting With House Democratic Leadership,” The White House, 5/13/2009)

POLITIFACT: “PROMISE BROKEN”: (J.B. Wogan, “No Cut in Premiums for Typical Family,” Politifact.com, 8/31/2012)

RECORD HIGH GAS PRICES:

AAA: FAMILIES UNLIKELY TO SEE RELIEF, HIGH PRICES WILL REMAIN “AT OR NEAR RECORD HIGHS” THROUGH THE END OF 2012: “But high prices will probably linger. ‘While prices should drop in September barring any major developments, we expect gasoline to remain at or near record highs through the end of 2012,’ AAA spokesman Avery Ash said in a statement.” (Andrew Restuccia, “Record-High Labor Day Gasoline Prices Greet Democrats In Charlotte,” Politico, 9/3/2012)

2012 LIKELY TO BE “COSTLIEST YEAR EVER AT THE PUMP”: “Gasoline prices are up sharply in the past month … and now are likely to make 2012 the costliest year ever at the pump. Nationally, gasoline averages $3.70 a gallon — up 30 cents since mid-July and is now higher than year-ago levels in 39 states. Prices are likely to continue climbing through August” (Gary Strauss, “2012 Gas Prices Head For Record,” USA Today, 8/15/2012)

PERSISTENTLY HIGH UNEMPLOYMENT:

UNEMPLOYMENT RATE GOES DOWN TO 8.1%, “BUT ONLY BECAUSE MORE PEOPLE GAVE UP LOOKING FOR WORK”: (Julie Pace and Donna Cassata, “Convention Over, Obama Hit With Weak Job Report,” Associated Press, 9/7/2012)

UNEMPLOYMENT HAS ONLY BEEN ABOVE 8% FOR 43 STRAIGHT MONTHS UNDER OBAMA, MORE THAN 11 PREVIOUS PRESIDENTS COMBINED:  (Bureau of Labor Statistics, 9/7/2012)

UNEMPLOYMENT TO “REMAIN ELEVATED FOR ANOTHER FIVE TO SIX YEARS”: “Federal Reserve officials agreed at a meeting in June that unemployment would remain elevated for another five to six years, but most did not regard that as a reason for the Fed to expand its efforts to stimulate growth, according to an official account published Wednesday.” (Binyamin Appelbaum, “Fed is Torn on Tipping Point for Action,” The New York Times, 7/11/2012)

A FORECLOSURE CRISIS WITHOUT END:

NEW BOOK: OBAMA NEVER HAD A HOUSING PLAN, SAID “WE WILL NOT ROLL OUT AN AGGRESSIVE HOUSING PLAN”: (James Hohmann, Politico’s “Morning Score,” 9/11/2012)

“HALF OF HOMEOWNERS UNDER 40 ARE UNDERWATER”:(Ann Carrns, “Half of Homeowners Under 40 are Underwater,” The New York Times, 8/23/2012)

5.7 MILLION RESIDENTIAL MORTGAGES ARE EITHER 30 DAYS DELINQUENT OR IN FORECLOSURE: (Press Release, “LPS ‘First Look’ Mortgage Report: June Month-End Data Shows Increase In Delinquencies,” Lender Processing Services, 7/25/12)

Now Democrats are demanding job-destroying new tax hikes and devastating defense cuts that will make things even worse:

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)

“SENIOR DEMOCRATS” ARE READY TO “PLUNGE THE NATION BACK INTO RECESSION” IF THEY DON’T GET THE TAX HIKES THEY WANT: (Lori Montgomery, “Democrats Threaten to Go Over ‘Fiscal Cliff’ if GOP Fails to Raise Taxes,” The Washington Post, 7/16/2012)

DEVASTATING DEFENSE CUTS THAT WILL ELIMINATE MILLIONS OF JOBS:

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)

STUDY: UP TO 10 MILLION JOBS COULD BE LOST FROM DEMS’ DISASTROUS PLAN: “The negative fiscal shock exceeds Gross Domestic Product (GDP) growth in any year over the past two decades, and when considering economic multipliers, the contraction could approach ten percent, which would amount to the biggest year-to-year decline since 1932. This upper-bound estimate would result in a loss of 10 million jobs, according to the administration’s methods.” (“New Study Examines Economic Effects of the Fiscal Cliff,” American Action Forum, 7/17/2012)

NATIONAL ASSOCATION OF MANUFACTURERS: 3.44 MILLION JOBS COULD DESTROYED BY SEQUESTER FROM 2012 – 2022: (“Defense Spending Cuts: The Impact on Economic Activity and Jobs,” National Association of Manufacturers, Accessed 7/18/2012)

JOB-DESTROYING TAX HIKES ON SMALL BUSINESSES THAT WILL HURT WORKING FAMILIES:

TAX HIKE WOULD BE A $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)

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)

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)

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)

Democrats Own the Middle Class Recession http://ow.ly/dFpXm #stopthetaxhike