Unemployment Up As Uncertainty Over Obama Tax Hikes Stifles Job Growth
"The U.S. unemployment rate increased to 9.6 percent and the economy lost 54,000 jobs in August," reports UPI. Americans are asking, "Where are the jobs?" But Democrats aren't listening. Instead, they're plotting to raise taxes on small businesses and stifling job growth in the process.
Democratic leaders have dismissed concerns about their proposed tax hikes, suggesting that they would "affect only a tiny fraction of the wealthiest Americans" and would exempt "about 97% of small businesses." Kevin Hassett and Alan Viard call this "one of the more misleading statements in the long history of economic propaganda."
Hassett and Viard argue in the Wall Street Journal that the impact of Democrats' tax hike on job creators is "far more severe" than Speaker Pelosi, VP Biden, and others suggest:
"The numbers are clear. According to IRS data, fully 48% of the net income of sole proprietorships, partnerships, and S corporations reported on tax returns went to households with incomes above $200,000 in 2007. That's the number to look at, not the 3%. Would Mrs. Pelosi and Mr. Biden deny that the more successful firms owned by individuals in the top income-tax bracket are disproportionately responsible for investment and job creation?
"It's clear that business income for large and small firms will be hit by the higher tax rates."
Hassett and Viard say that "[t]he expectation of tax increases, such as those in Mr. Obama's plan, is on the minds of the people who should be leading the recovery." This creates uncertainty. And uncertainty hurts hiring.
This was confirmed by a National Association of Manufacturers (NAM) report this week. According to The Hill, NAM says the uncertainty created by Democrats' determination to raise taxes "is contributing to the unemployment crisis facing the country." From The Hill:
"'Small businesses are America's job creators, responsible for 60 percent of the net new jobs created in the last decade,' the report states. 'But uncertainty about looming tax hikes has stunted employment growth and until Main Street begins to hire, the unemployment rate will remain unacceptably high.'"
This echoes remarks by House Republican Leader John Boehner (R-OH) last week where he argued "that the policies put in place by the Democratically led Congress and White House have left businesses 'scared to death' of investing in the economy or hiring new employees." Roll Call says Boehner today renewed his call on President Obama to "change course, abandon his job-killing policies and find himself a new economic team."
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