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Congressional Democrats Say Loss of Hundreds of Thousands of Jobs is Only a “Miniscule Effect” of Tax Hikes
On November 8, Congressional Democrats suggested that allowing taxes to rise on small businesses would “have only a miniscule effect on economic growth.” However, according to a new Congressional Budget Office (CBO) report, their call for tax hikes would destroy 200,000 jobs. While that level of job destruction may be “miniscule” to Democrats, the reality is, it is more than all of the net job creation during the entire Obama Administration to date. According to the U.S. Department of Labor:
Nonfarm payroll employment, October 2012 133,755,000
Nonfarm payroll employment, January 2009 133,561,000
Net change during Obama Administration 194,000
Recent reports second the CBO assessment that raising taxes will destroy jobs. The non-partisan Joint Committee on Taxation states that the tax hikes supported by President Obama and Congressional Democrats will hit nearly one million businesses and more than half of all small business income earned. An independent Ernst & Young study estimates over 700,000 jobs will be lost. With an unemployment rate of 7.9 percent, Congress must take action and stop all of the looming job-killing tax hikes.
Job Creators Agree – Stop the Tax Hikes
Associated Builders and Contractors, Inc.
“Rather than exposing American taxpayers and job creators to a perilous fiscal cliff, Congress must act swiftly to extend current policies as a bridge to comprehensive tax reform. The Camp package would do just that, continuing the 2001 and 2003 rates while abiding by the bipartisan estate tax compromise reached in 2010 and providing for a path to reform the code.”
National Association of Home Builders
“As many home builders are organized as pass-thru entities, extending for one year the expiring 2001 and 2003 tax cuts will block a massive tax increase from hitting our struggling small business owners….Housing can be a key engine of job growth that this country needs. However, the recovery we are seeing remains fragile. As the rest of the economy is experiencing softening conditions, now would be the worst time to raise taxes.”
National Federation of Independent Business
“Seventy-five percent of small businesses are organized as pass-through entities….As such, small business owners are directly impacted by higher marginal income tax rates. If these rates are not extended, the vast majority of the small business sector would see its taxes increase significantly…”
U.S. Chamber of Commerce
“Increasing taxes now will undermine economic recovery, choke off job creation, and take money out of the hands of individuals and businesses that create jobs, spur investment, boost consumption, and promote economic growth.”