Too Afraid to Spend or Hire: Obama’s Tax Hike Has Job Creators Putting Off New Hires
After another disappointing jobs report, Speaker John Boehner said, “While the president is telling small businesses ‘you didn’t build that,’ his policies are making sure they can’t” – witness the impact of his small business tax hike proposal.
“[S]mall business owners have said they are too afraid to spend or hire” with President Obama’s tax hike looming, says CNBC. Ernst & Young says the tax hike would destroy more than 700,000 jobs . The Joint Committee on Taxation (JCT) estimates it will hurt nearly one million small businesses. Those lucky enough to have a job in the Obama economy could see lower wages.
That’s why the House passed a bipartisan bill to stop all of the president’s tax hikes. The House bill protects everybody – middle class families, small businesses, seniors, farmers, everyone – from being socked with higher taxes on January 1. The House also voted to begin crafting a fairer, simpler tax code that will help keep jobs here and bring home some of the jobs that have gone overseas.
But with millions out of work, the president’s refusal to work with Republicans to stop the tax hike is only making things worse. “A rising number of manufacturers are canceling new investments and putting off new hires” until they have some certainty about their tax rates, says the New York Times.
A new Gallup survey showed “small business owners’ optimism declined” as the unemployment rate rose last month (staying above eight percent for three-and-a-half years). CNN says “63% reported being too concerned about the state of the economy to make any new capital investments.”
Dozens of economists agree the tax hike has to be stopped to prevent further damage to our economy. Republicans have taken action, and have passed more than 30 other jobs bills that remove barriers to economic growth. Now the onus is on President Obama and Senate Democrats. Will they work with Republicans to protect jobs and middle class families? Or will they tank our economy in pursuit of higher taxes?