Dems Vote for New Tax Hikes That Will Destroy Already Scarce Jobs

Economic Data Show Unemployment Will Remain High for Years, But Democrats Are Demanding New Tax Hikes that Would Put Even More Americans Out of Work

• Economic data continue to signal that the economy remains weak and unemployment will remain high for years into the future.
• Despite this grim reality, House Democrats voted yesterday for job-destroying new tax hikes that will make a bad economy worse.
• Even as Democrats demand more taxpayer dollars to spend, they’ve made their irresponsible waste of taxpayer money abundantly clear. The last thing Americans want to do is give Democrats more of their hard-earned money to waste.

Economic data continue to signal that the economy remains weak and unemployment will remain high for years into the future:

“OMB REPORT SAYS RECESSION WILL COST DECADE OF HIGH UNEMPLOYMENT RATES”: (Reid Epstein, “OMB Report Says Recession Will Cost Decades of High Unemployment Rates,” Politico, 7/28/2012)

FEDERAL RESERVE: 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)

JULY PHILLY FED REPORT INDICATED NEGATIVE OUTLOOK ON JOB CREATION: (Ben Duronio, “The Most Troubling Piece of Philly Fed Survey,” Business Insider, 7/19/2012)

ISM MANUFACTURING SURVEY SIGNALS CONTRACTION: “The monthly ISM manufacturing gauge inched ahead to 49.8% in July from 49.7% in June, the government reported at 10 a.m. indicating that the sector continues to contract (anything below 50% equals contraction). The reading was below expectations for 50.2%, and it caused stocks to dip. The Dow was still up about 40 points shortly after the release, however. Before June, the sector had not registered a reading below 50% since July 2009.” (Avi Salzman, “Manufacturing Still Contracting, Says ISM Survey,” Barron’s, 8/1/2012)

Despite this grim reality, House Democrats voted yesterday for job-destroying new tax hikes that will make a bad economy worse:

89% OF DEMOCRATS VOTED AGAINST PREVENTING TAX HIKES: (Roll Call 545, Clerk of the U.S. House, 8/1/2012)

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)

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)

Even as Democrats demand more taxpayer dollars to spend, they’ve made their irresponsible waste of taxpayer money abundantly clear. The last thing Americans want to do is give Democrats more of their hard-earned money to waste:

INVESTIGATION DISCOVERS $30 MILLION IN UNREPORTED BONUSES AT THE GENERAL SERVICES ADMINISTRATION (GSA): (Russ Ptacek, “$30 Million in Unreported GSA Bonuses Uncovered by WUSA9 Investigation, Rep John Mica Plans Congressional Investigation,” WUSA 9, 7/31/2012)

“GSA SPENT MORE THAN $270,000 TO ENTERTAIN EMPLOYEES”: “Four weeks after an $823,000 spending spree at a Las Vegas hotel, the General Services Administration spent more than $270,000 on a one-day, taxpayer-funded ceremony to reward good performers that featured a drum-band exercise and more than $50,000 in gifts and awards. The Federal Acquisition Service entertained about 1,000 employees at two Arlington County hotels, with an additional 2,600 participating by webcast, officials said. Forty-nine attendees were flown in from offices around the country. The revelations Thursday from GSA Inspector General Brian Miller come three months after his scathing report on a lavish, four-day training conference in 2010 for employees in the agency’s western regions.” (Lisa Rein, “GSA Spent More than $270,000 to Entertain Employees Who Got Performance Awards,” The Washington Post, 7/19/2012)

YOUR TAX DOLLARS PAID FOR 4,000 PICTURE FRAMES SHOWING TIME AND TEMPERATURE AND 4,000 DRUMSTICKS FOR “TEAM-BUILDING”: “The latest report of questionable spending came two days after acting GSA Administrator Dan Tangherlini announced a hiring freeze for the rest of the fiscal year and canceled most bonuses for executives. More than half of the money for the event that came to light Thursday- $140,464 – went to a public relations, marketing and advertising firm for ‘coordination and logistical management,’ according to Miller’s preliminary review, which was sent to congressional investigators. … The Arlington celebration pulled out all the stops: a $7,697.22 ‘commissioners reception’ for high-ranking officials; 4,000 picture frames showing time and temperature at a cost of $28,364.45 to taxpayers; five passenger buses, two minibuses and a van for $5,390. And a whopping $20,578.24 paid for 4,000 drumsticks for a team-building exercise.” (Lisa Rein, “GSA Spent More than $270,000 to Entertain Employees Who Got Performance Awards,” The Washington Post, 7/19/2012)

GSA ALREADY HAS A TRACK RECORD OF WASTE:

“GSA MADE UP ‘JACKASS AWARD’ TO JUSTIFY DINNERS”: “Officials at the General Services Administration invented fake awards as an excuse to hold taxpayer-funded dinner events at conferences, according to an interview transcript obtained by Roll Call.” (Jonathan Strong, “GSA Made Up ‘Jackass Award’ to Justify Dinners,” Roll Call, 4/12/2012)

GSA WASTED $823K ON VEGAS CONFERENCE, VIOLATING “SCORES OF RULES AND REGULATIONS GOVERNING SPENDING” TAX DOLLARS: “GSA is under fire because the inspector general revealed in an April 2 report that the agency spent almost $823,000 on an October 2010 Las Vegas conference for about 300 people. The inspector general also said officials violated scores of rules and regulations governing spending of taxpayer dollars.” (Jonathan Strong, “GSA Made Up ‘Jackass Award’ to Justify Dinners,” Roll Call, 4/12/2012)

SPENT $330,000 FOR RELOCATION ON A SINGLE EMPLOYEE, “LIKELY ‘MILLIONS’ ON OTHERS OVER A TWO YEAR PERIOD”: (Dana Bash, “Employee Says GSA Spent ‘Millions’ on Relocation,” CNN, 4/12/2012)

OBAMA’S GSA ALSO TREATED INTERNS TO A CONFERENCE AT A RESORT: (Larry Margasak, “GSA Interns Treated to Conference at Resort,” Associated Press, 4/12/2012) 

AND DEMOCRATS WANT TO KEEP SPENDING:

WHITE HOUSE: “WEAK RECOVERY SHOWS STATE GOVERNMENTS NEED MORE ECONOMIC STIMULUS”: (Joel Gehrke, “WH: Weak Recovery Shows State Governments Need More Economic Stimulus,” The Washington Examiner, 7/27/2012)

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)

$5.25 TRILLION INCREASE IN NATIONAL DEBT SINCE OBAMA TOOK OFFICE: (“The Daily History of the Debt Results,” Bureau of the Public Debt, Accessed 7/30/2012)