Dems Claim Taxmageddon Will…Create Jobs?

July 10, 2012

President Obama’s Latest Tax Hike Proposal Rallies Democrats While Hurting Small Business’ Ability to Hire New Workers

It’s bizarre enough that Democrats are campaigning on tax hikes as the economy remains perilously weak. But President Obama upped the ante yesterday with his absurd suggestion that his planned tax increases will actually create jobs.
Sadly, Democrats are closing ranks behind President Obama’s job-destroying tax proposal.
The fact remains that Democrats’ latest tax increase will hit nearly a million small businesses, making it harder for them to hire new workers.

It’s bizarre enough that Democrats are campaigning on tax hikes as the economy remains perilously weak. But President Obama upped the ante yesterday with his absurd suggestion that his planned tax increases will actually create jobs:

OBAMA CLAIMS HIS PROPOSED TAX HIKES WILL “ENCOURAGE BUSINESSES TO START UP AND CREATE JOBS”: “We need policies that grow and strengthen the middle class — policies that help create jobs, that make education and training more affordable, that encourage businesses to start up and create jobs right here in the United States. So that’s why I believe it’s time to let the tax cuts for the wealthiest Americans — folks like myself — to expire.” (“Remarks by the President on Extending Tax Cuts for Middle-Class Families,” The White House, 7/9/2012)

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)

BUT THE OBAMA ECONOMY IS STILL STRUGGLING:

JOE BIDEN TWO WEEKS AGO: “IT’S A DEPRESSION FOR MILLIONS AND MILLIONS OF AMERICANS”: (Vice President Biden, Remarks During A Campaign Event, Dubuque, IA, 6/27/12)

JUST 80K JOBS CREATED IN JUNE, UNEMPLOYMENT RATE STAYS AT 8.2%: (Michael Aneiro, “Disappointed Again: U.S. Adds 80,000 New Jobs in June,” Barrons, 7/6/2012)

DEMOCRATS PROMISED THEIR STIMULUS WOULD HAVE UNEMPLOYMENT BELOW 6% BY NOW: “Mr. Obama asserted again Friday that the problem is that Congress won’t pass his jobs plan. The first stimulus was supposed to produce growth that would by now have the jobless rate under 6%. So now we are supposed to believe that Stimulus II will do the trick.” (Editorial, “The Latest Jobs Drought,” The Wall Street Journal, 7/7/2012)

UNDEREMPLOYMENT RATE RISES TO 14.9%: (Jeffrey Sparshott and Eric Morath, “Jobs Data Indicate Slowing Growth,” The Wall Street Journal, 7/6/2012)

41 MONTHS OF UNEMPLOYMENT ABOVE 8 PERCENT: “With 41 months of 8% unemployment or higher, Congress’s Joint Economic Committee confirms that this is the weakest growth and employment at this stage of a recovery since World War II.” (Editorial, “The Latest Jobs Drought,” The Wall Street Journal, 7/7/2012)

LABOR FORCE PARTICIPATION NEAR 40-YEAR LOW: (Editorial, “The Latest Jobs Drought,” The Wall Street Journal, 7/7/2012)

Sadly, Democrats are closing ranks behind President Obama’s job-destroying tax proposal:

DEMOCRAT CONGRESSIONAL LEADERS SUPPORT OBAMA TAX-HIKE PLAN: “In a private mid-June meeting at the White House, the president and his top aides — David Plouffe, Jack Lew and Pete Rouse — laid out the position to Democratic leaders. Senate Majority Leader Harry Reid and House Minority Leader Nancy Pelosi announced their support of the president’s plan on Monday.” (Seung Min Kim, Manu Raju and Scott Wong, “Embattled Dems Buck President Obama on Taxes,” Politico, 7/10/2012)

SCHUMER THINKS “PARTY UNITY” TAKES PRIORITY OVER PREVENTING JOB-DESTROYING TAX HIKES: “But he believes more that party unity at this time is even more important,’ said a person close to Schumer told POLITICO, who emphasized that any daylight between the White House and Hill Democrats was tactical, not philosophical.” (Glenn Thrush and Manu Raju, “Schumer Drops Objection to Obama Tax Plan,” Politico, 7/9/2012)

The fact remains that Democrats’ latest tax increase will hit nearly a million small businesses, making it harder for them to hire new workers:

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 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)