President Obama's Historic Tax Hike

Posted by Brian Patrick on

FYI – 

Speaking in Ohio, the President delivered yet another campaign-style speech to promote his jobs plan that has been criticized by members of his own party for its massive tax increases. House Republicans stand ready to work with the President on areas of agreement, but the fact remains that small businesses cannot expand and hire if the President demands one of the largest tax hikes in American history.
 

  • President Obama: “It [The American Jobs Act] will cut taxes for every small business in America.” (Remarks, 9/22/11)


Background

President Obama’s Plan Raises Taxes On Working Families and Small Businesses. ... the president's new-old plan to raise income taxes on families and small businesses earning more than $250,000—to pay for temporary tax gimmicks and extra spending—is just stale wine in a new bottle. (The Wall Street Journal, 9/22/11)

  • Leader Cantor: We Need To Stay Away From Talk Of Raising Taxes, Raising Taxes Crushes Job Creation. Cantor ruled out supporting any tax rate increases. "We need to say away from that discussion," he said, adding "raising taxes crushes job creation." Cantor was sharply critical of Obama's revamped $3 trillion deficit reduction package, saying it relies heavily on tax increases that would crimp economic growth and job creation. (Market News International, 9/20/11)
  • Senator Schumer: It’s Unacceptable To Raise Taxes On Working Families & Small Businesses In New York. Schumer said the $250,000 limit is unacceptable since it will hit the metropolitan area disproportionately because of the high cost of living here. “$250,000 makes you really rich in Mississippi but it doesn’t make you rich at all in New York and there ought to be some kind of scale based on the cost of living on how much you pay,” Schumer said. (CBS New York, 9/19/11)
  • Senator Ben Nelson: There’re Too Much Talk About Raising Taxes and Not Enough Focus On Cutting Spending. Sen. Ben Nelson (D-Neb.), a key moderate who’s up for reelection next year, didn’t mince words: “There’s too much discussion about raising taxes right now, not enough focus on cutting spending.” (Politico 9/19/11)
  • Senator Jim Webb: We Shouldn’t Be Increasing Taxes On Ordinary Income. “Terrible,” Sen. Jim Webb (D-Va.) told POLITICO when asked about the president’s ideas for how to pay for the $450 billion price tag. “We shouldn’t increase taxes on ordinary income. … There are other ways to get there.” (Politico, 9/14/11)
  • Sen. Joe Lieberman: I Wouldn’t Do Anything That Raises Taxes. “I wouldn't do anything to raise taxes in the foreseeable future because that'll stifle the recovery.” (Sean Hannity Radio Show, 9/20/11)


Tax Increases Account For More Than 100% Of The President’s Proposal ... The White House claims that the president’s plan represents a “balanced approach” that, relative to its current policy baseline, will increase the federal deficit initially by $300 billion in fiscal year 2012 (to pay for his “jobs plan“), but will reduce deficits by $3.2 trillion over the next decade. The claim is outrageously misleading. In fact, when you strip away the budgetary gimmicks, Obama’s plan achieves less than half the overall deficit reduction he is claiming, and is as wildly unbalanced as his February budget proposal. ... So, because of the additional spending Obama has proposed as part of his “jobs plan,” tax increases actually account for more than 100 percent of the deficit-reduction he can accurately claim. In his speech at the White House this morning, the president’s said his plan “cuts $2 for every dollar in new revenues.” In reality, it reduces the deficit by cutting $0, spending $1 and raising taxes by $11. Despite this massive tax increase, however, the president’s plan still fails to get deficits under control. Annuals deficits reach decline to $476 billion in 2014, but rise to $565 billion in 2021. Over the 10-year budget window, the plan adds to the deficit by a total of $6.4 trillion by 2021, and gross federal debt reaches nearly $25 trillion, more than 100 percent of the national GDP. (National Review Online, 9/19/11)
 





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