Key Points on President Obama’s Deficit Reduction Plan
“Normally, you don’t raise taxes in a recession, which is why we haven’t and why we’ve instead cut taxes.
So I guess what I’d say is … you don’t raise taxes in a recession. We haven’t raised taxes in a recession.”
— President Obama, August 2009
- Now President Obama is calling on the Joint Select Committee on Deficit Reduction, which is tasked with reducing the deficit by $1.5 trillion, to raise taxes by $1.5 trillion. The plan would raise taxes on both small businesses and on private capital – the essential ingredients for job creation in our economy.
- The constant threat of out-of-control spending, higher taxes, and excessive regulation from Washington has resulted in job creators sitting on the sidelines, and the worst unemployment since the Great Depression.
- At a time when high taxes and excessive regulations are driving capital, businesses and jobs out of the United States the very last thing we need to do is to raise taxes on small business owners in a recession.
- Most small business owners file taxes as individuals to get a lower tax. Why should they be taxed as billionaires? Instead of raising taxes on job creators and raising capital gains taxes (which Democratic President Bill Clinton actually cut to create jobs), we need a permanent, pro-growth tax cut for small businesses and middle class Americans.
- America will not become more competitive by taxing, spending, and regulating more than our competitors. House Republicans put fundamental tax reform in our budget to make the tax code fairer, flatter, simpler and more competitive to create jobs, and it’s our hope that the president would support that effort.
- By declining to support structural improvements to strengthen our entitlement programs, the president is choosing to ignore the clear warnings about our debt, leaving Americans exposed to the possibility of further downgrades that will damage confidence and make it harder for our economy to grow and create jobs.