WASHINGTON – House Republican Conference Chairman Jeb Hensarling issued the following statement regarding the end of Fiscal Year 2012, the looming 2013 tax hike, and sequester implementation.
“As Fiscal Year 2012 drew to a close yesterday, we marked the fourth consecutive year of record-high $1 trillion deficits. While that milestone is frightening on its own, today also leaves us with only three months until hardworking families and small businesses are hit with a massive, automatic tax increase and our military is devastated by the sequester. Ernst and Young economists estimate that the tax increase demanded by President Obama would impact nearly one million small businesses and cost our nation 710,000 jobs during the worst unemployment crisis since the great depression. The Congressional Budget Office also recently confirmed that allowing sequestration to occur at the same time that taxes go up – as the president and Senate Democrats want – would drive the nation over a ‘fiscal cliff,’ spiraling our economy backward into another recession.
“Unfortunately, when it comes to averting this economic crisis, President Obama has failed to put forth any real solutions. Washington Democrats seem to believe that we can be the first nation on Earth to tax our way to jobs and prosperity and have made every effort to ignore the devastating defense cuts that lie ahead. House Republicans passed plans to stop both the job destroying tax hike and replace the defense sequester with common-sense spending reductions. It is time for the president and his party to act for the sake of rescuing Americans from an imminent but preventable economic disaster.”