While President Obama campaigns in Pennsylvania today and makes another pitch to raise taxes by $1.6 trillion, he has still failed to put forward a “balanced” plan that includes significant spending reductions to deal with the fiscal cliff. The President’s continued focus on increasing tax rates is fast turning the fiscal cliff into a jobs cliff. In fact, manufacturers across the country are warning the President’s tax increases will cost American jobs.
These employers aren’t alone. According to the non-partisan Joint Committee on Taxation, nearly one million small businesses and more than half of all small business income earned will be hit by the President’s tax rate hikes. Knowing that higher tax rates mean less money for investment and hiring, it is no wonder that both Ernst & Young and the Congressional Budget Office confirm that raising any tax rate will result in hundreds of thousands of jobs disappearing.