Dems’ New Year’s Plans: Raise Everyone’s Taxes, Tank the Economy

| July 18 2012

You probably don’t have New Year’s plans yet, but Washington Democrats do, and we can only hope they fall through.  Democrats are threatening to raise taxes on everyone (including middle-class families) and tank the already struggling economy if they don’t get their way – ‘their way’ being a massive small business tax hike that could destroy more than 700,000 U.S. jobs, according to a new Ernst & Young report

Speaker Boehner “hammered” the president over the Ernst & Young report, saying it shows this tax hike is “one of the worst possible ideas at one of the worst possible times for families and small businesses.”  That’s why, he continues, “the House will vote this month to stop all of the tax hikes, and to lay the groundwork for a fairer, simpler tax code that closes loopholes, lowers rates for everyone, and helps bring home some of the jobs that have gone overseas.

Far from offering – or even considering –  long-term solutions, Democrats “have shown little interest in a deal” and are carrying out a strategy that has already begun to hurt the economy:

  • Democrats willing to risk tax hike for all. … Democrats are going all-in in a fiscal game of chicken, saying they’ll let everyone’s income taxes rise on Jan. 1 and slash defense spending amid 8-plus percent unemployment…” (Associated Press, 7/17/12)
  • “Congressional Democratic leaders made clear Monday that they have no interest in averting the bleak scenario if Republicans continue to refuse to soften their hard-line opposition” to the president’s small business tax hike.” (Los Angeles Times, 7/17/12)
  • Democrats are exploiting the pending deadlines, which they acknowledge could hurt the economy if fully implemented…” (Roll Call, 7/18/12)
  • Sen. Patty Murray (D-WA) “may think she’s putting Republicans on the political spot, but her real hostage is the already weak economy.  Growth in the first quarter was a mere 1.9%, and economists have steadily downgraded their expectations for the second.  As the tax cliff approaches, the policy uncertainty is already causing businesses to hold off on hiring and investment.” (Wall Street Journal editorial, 7/18/12)
  • “Senate Majority Whip Dick Durbin (D-Ill.) … warned of the possibility of tax hikes on the nation’s middle class…” (The Hill, 7/18/12)
  • “Democrats are the ones threatening economic ruin….” (The Atlantic, 7/16/12)
  • “The non-partisan Congressional Budget Office estimates the effects of the looming fiscal cliff could stunt economic growth and push the U.S. economy back into a recession in 2013.” (MarketWatch, 7/18/12)

So Democrats are threatening to take the economy off a cliff and “plunge the nation back into recession” for a small business tax hike that, according to Ernst &Young, could cost on the order of 700,000 jobs.  Where’s the wisdom in that?  Through Republicans’ Plan for America’s Job Creators, the House will vote to stop all the tax hikes and lay the groundwork for a fairer, simpler tax code that lowers rates, closes loopholes, and brings home some of the jobs that have gone overseas.  As Speaker Boehner has said, “we shouldn’t wait until New Year’s Eve to give American job creators the confidence that they aren’t going to get hit with a tax hike on New Year’s Day.”

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