Categorized | Senate News Briefing

Obama’s Dangerous Tax Hike to Cost 710,000 Jobs

A New Study Reveals That President Obama’s Tax Hike Will Lead To ‘710,000 Fewer Jobs,’ & ‘A Decline In Workers’ Living Standards’


‘710,000 Fewer Jobs,’ ‘Wages Would Fall’


NEW STUDY (Ernst & Young): “This report finds that these higher marginal tax rates result in a smaller economy, fewer jobs, less investment, and lower wages. Specifically, this report finds that the higher tax rates will have significant adverse economic effects in the long-run: lowering output, employment, investment, the capital stock, and real after-tax wages when the resulting revenue is used to finance additional government spending.” (“Long-Run Macroeconomic Impact Of Increasing Tax Rates On High-Income Taxpayers In 2013,” Ernst & Young LLP, P.i, 7/12)


NATIONAL FEDERATION OF INDEPENDENT BUSINESSES: “This report clearly shows that raising taxes on job creators will have a negative impact.” (NFIB, Press Release, 7/17/12)


‘710,000 Fewer Jobs,’ ‘Wages Would Fall By 1.8%’


·         Employment in the long-run would fall by 0.5% or, roughly 710,000 fewer jobs, in today’s economy.”

·         “Output in the long-run would fall by 1.3%, or $200 billion, in today’s economy.”

·         Real after-tax wages would fall by 1.8%, reflecting a decline in workers’ living standards relative to what would have occurred otherwise.”(“Long-Run Macroeconomic Impact Of Increasing Tax Rates On High-Income Taxpayers In 2013,” Ernst & Young LLP, P.ii, 7/12)


Jobs Groups Warn On Fiscal Cliff

As Dems Threaten To Steer America Off Fiscal Cliff, Jobs Groups Warn Of ‘Devastating Effect,’ ‘Very Real Consequences To Small Businesses’


JOBS GROUPS: ‘A Major Concern For Small Business Owners’


CHAMBER OF COMMERCE: “The simple truth is that Congress and the Obama administration need to act now. The economy is still fighting its way out of a recession. Not one economic school of thought suggests it is a good idea to increase taxes when there is an 8.2 percent jobless rate.”(Caroline L. Harris, “The Unnecessary Complication Of The Fiscal Cliff,” The Chamber Of Commerce, 7/16/12)


·         “The ramifications of a failure to act are easily identified. First victim? Economic growth.” (Caroline L. Harris, “The Unnecessary Complication Of The Fiscal Cliff,” The Chamber Of Commerce, 7/16/12)


·         “Failure to address the automatic tax increases and spending cuts would reduce economic growth and could jeopardize economic recovery… Economists from across the political spectrum warn that such tax increases and spending cuts would have a devastating effect on a still sputtering U.S. economyquite possibly returning it to recession.” (The Chamber Of Commerce, Open Letter To Congress, 6/5/12)


NATIONAL ASSOCIATION OF MANUFACTURERS: “…any further delay in forcefully dealing with the problem will only worsen the economic fallout that the United States is facing… and it’s time for Washington to provide the leadership necessary to ensure our economy does not fall off the impending fiscal cliff.” (National Association Of Manufacturers (NAM) President And CEO Jay Timmons, Statement, 7/6/12)


NATIONAL FEDERATION OF INDEPENDENT BUSINESS: “This is a major concern for small business owners because it creates uncertainty since owners do not know what their tax liability will be in 2013. Also, it makes it difficult to hire new workers or make significant investments in a business.”(“The ‘Fiscal Cliff’,” National Federation Of Independent Business)


·         NFIB PRESIDENT DAN DANNER: “President Obama’s politically based move to block the extension of crucial, soon-to-expire tax provisions will have very real consequences to small businesses… This combination of tax increases and spending reductions could send the economy back into a recession further exacerbating small business owner’s outlook.” (“President Ignores Small Business Warning Of ‘Fiscal Cliff’,” National Federation Of Independent Business)


AMERICAN COUNCIL FOR CAPITAL FORMATION: “If nothing is done to pull the economy back from this ‘Fiscal Cliff’, the macroeconomic effects of these tax increases could be quite substantial, with the potential to induce a recession.” (ACCF, “Special Report,” 6/12)


·         “… the negative fiscal shock of large tax increases in 2013 could cause a significant downturn… The economy ends up losing 2.8 million jobs on average per year.” (ACCF, “Special Report,” 6/12)

About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog. Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

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Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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