On Tue, 07 Aug 2012 00:07:16 -0700, "Irish Mike"
<ad7...@webnntp.invalid> wrote:
>Ernst and Young: Obama’s Tax Increase Would Kill 710,000 Jobs
>
>Curtis Dubay
>
>July 18, 2012 at 11:00 am
Part of the Heritage Foundation crew.
>"A new study conducted by Ernst and Young proves conclusively that the
>President’s tax increase would be devastating to the economy and jobs.
>
>The study finds that, if Congress misguidedly adopted President Obama’s
>plan to raise taxes on job creators by allowing the Bush-era tax policies
>to expire for incomes over $200,000 ($250,000 for married filers), the
>economy and jobs would suffer terribly:
>
> •Output in the long run would fall by 1.3 percent, or $200 billion, in
>today’s economy;
>
> •Employment in the long run would fall by 0.5 percent or, roughly 710,000
>fewer jobs, in today’s economy;
>
>•Capital stock and investment in the long run would fall by 1.4 percent
>and 2.4 percent, respectively; and
>
> •Real after-tax wages would fall by 1.8 percent.
>
>There are almost 13 million Americans out of work today. President Obama’s
>tax increase would needlessly add almost three-quarters of a million
>people to that already much too large number. Even those with jobs
>wouldn’t escape the pain of President Obama’s tax increase, as they would
>see their wages suffer.
>
>The report validates Heritage’s argument that President Obama’s tax
>increase plan would badly hurt job creation because it would fall heaviest
>on the most successful businesses that employ workers and pay their taxes
>through the individual income tax (known as flow-through businesses). The
>study reports:
>
>The concern over higher individual tax rates has also been a focus because
>of the prominent role played by flow-through businesses—S corporations,
>partnerships, limited liability companies, and sole proprietorships—in the
>US economy and that a large fraction of flow-through income is subject to
>the top two individual income tax rates. These businesses employ 54% of
>the private sector work force and pay 44% of federal business income
>taxes. The number of workers employed by large flow-through businesses is
>also significant: more than 20 million workers are employed by
>flow-through businesses with more than 100 employees. (Emphasis added.)
>
>President Obama is fond of saying his tax increase wouldn’t impact 97
>percent of small businesses. But those 97 percent of small businesses
>aren’t job creators. They range from people in their basements selling
>items on e-Bay to lawyers who practice out of their homes.
>
>The businesses that would pay this tax increase are the businesses that
>hire millions of workers. Higher taxes on these vital job creators could
>force them to cut back on their existing workforce and would certainly
>cause them to slow hiring of new workers.
>
>President Obama couches his argument for tax hikes on the rich in terms of
>fairness. But it would be anything but fair that millions of unemployed
>Americans desperate to go back to work would find it harder to land a job
>to provide for their families because of President Obama’s misguided class
>warfare.
>
>There can be no doubt any more that President Obama’s Taxmageddon tax
>increase would devastate jobs."
>
>Irish Mike
>
>Obama has been an unmitigated disaster for this country. If you voted for
>Obama in 2008 to prove you're not a racist, vote against him in 2012 to
>prove you're not an idiot.
--
Don Kirkman
don...@charter.net