Dear Dems: This Just Isn’t “Working”

July 30, 2012

Grim Economic Numbers Continue to Show Democrats’ Policies Haven’t “Worked,” But Democrats Want Tax Hikes that Will Make Things Worse

Last week’s report on U.S. economic growth confirmed the economy is in the doldrums, struggling to regain momentum and create jobs—a far cry from President Obama’s claims that his policies “worked” and that “the private sector is doing fine.”
Democrats are reacting to these grim economic conditions by proposing more failed stimulus spending, paid for with job destroying new tax hikes that will make life harder for small businesses.
Sadly, President Obama has already broken his promise not to raise taxes in a bad economy and now he is preparing to break it again.

Last week’s report on U.S. economic growth confirmed the economy is in the doldrums, struggling to regain momentum and create jobs—a far cry from President Obama’s claims that his policies “worked” and that “the private sector is doing fine”:

“ECONOMY WEAK IN SECOND QUARTER, GDP GROWS AT 1.5% RATE”: (Tim Mullaney, “Economy Weak in Second Quarter, GDP Grows at 1.5% Rate,” USA Today, 7/27/2012)

“UNEMPLOYMENT COULD STAY HIGH AS US ECONOMY SLOWS”: “High unemployment isn’t going away — not as long as the economy grows as slowly as it did in the April-June quarter.” (Martin Crutsinger, “Unemployment Could Stay High as US Economy Slows,” Associated Press, 7/27/2012)

“CONSUMER SENTIMENT HITS FRESH 2012 LOW”: (“Consumer Sentiment Hits Fresh 2012 Low,” Reuters, 7/27/2012)

“US POVERTY ON TRACK TO RISE TO HIGHEST SINCE 1960s”: (Hope Yen, “US Poverty on Track to Rise to Highest Since 1960s,” Associated Press, 7/23/2012)

MIDDLE CLASS INCOME ON THE DECLINE: “Since median inflation-adjusted family income peaked in 2000 at $64,232, it has fallen roughly 6 percent. You won’t find another 12-year period with an income decline since the aftermath of the Depression.” (Jeff Cox, “Earnings Show Recession May Be ‘Fast Approaching,’” CNBC, 7/23/2012)

“EARNINGS SHOW RECESSION MAY BE ‘FAST APPROACHING’”: (Jeff Cox, “Earnings Show Recession May Be ‘Fast Approaching,’” CNBC, 7/23/2012)

HEY OBAMA, IT’S NOT “WORKING”: “Just like we’ve tried their plan, we tried our plan — and it worked. That’s the difference.” (“Remarks by the President at a Campaign Event,” The White House, 7/25/2012)

OBAMA: “THE PRIVATE SECTOR IS DOING FINE.” (“Obama: ‘The Private Sector Is Doing Fine,’” Real Clear Politics, 6/8/2012)

Democrats are reacting to these grim economic conditions by proposing more failed stimulus spending, paid for with job destroying new tax hikes that will make life harder for small businesses:

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)

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)

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)

Sadly, President Obama has already broken his promise not to raise taxes in a bad economy and now he is preparing to break it again:

CBO: $1 TRILLION IN OBAMACARE TAX HIKES OVER 2013-2022: (Douglas Elmendorf, “Letter to the Honorable John Boehner,” Congressional Budget Office, 7/24/2012, p.6)

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)