“You don't raise taxes in a recession...because that would just suck up, take more demand out of the economy and put businesses in a further hole.”
—President Barack Obama, August 2009
Four months until Democrats increase taxes
“The bipartisan framework we have forged on taxes…will provide businesses with incentives to invest, grow, and hire…Every economist I have talked to or read over the last couple of days acknowledges that this agreement would boost economic growth in the coming years and has the potential to create millions of jobs," Obama continued. "But if this framework fails, the reverse is true. Americans will see it in smaller paychecks that will have the effect of fewer jobs." (emphasis added)
More Americans will suffer amid the president’s campaign of envy and division
Multiple outlets have concluded that the president’s economic logic of December 2010 is all the more applicable in 2012:
- The Congressional Budget Office’s (CBO) August 2012 budget and economic forecast shows that pending tax increases and arbitrary spending cuts would send the U.S. economy into another economic recession and drive the unemployment rate above 9 percent by the end of 2013.
- A recent report from accounting firm Ernst & Young found the president’s tax increases will cost the economy more than 710,000 American jobs. In addition, the report stated that wages would fall by 1.8 percent, reflecting a decline in workers’ living standards relative to what would have occurred otherwise.
- Even the former chairman of President Obama’s Council of Economic Advisers, Austan Goolsbee, said of the pending tax increases, “It’s two to three times bigger in negative terms than even the biggest year of the stimulus was in positive terms.”
House Republicans have lead where the president and Senate Democrats will not by passing legislation to stop the tax hike on American families and small businesses. To solve the impending tax crisis, House Republicans voted to approve the Job Protection and Recession Prevention Act, which would block the president’s looming tax hike because no one should have to pay higher taxes during the greatest unemployment crisis since the Great Depression. In addition, House Republicans passed the first-ever legislative vehicle to expedite comprehensive tax reform that will make the code fairer, flatter and simpler while empowering our nation’s businesses to compete with their global rivals.