No Laffer-ing Matter

The Heritage Foundation: The Economic Toll of the Obama Tax Hikes

Contrary to what you hear from the White House, the Obama tax hikes do not just hit the wealthy. Economic life at all levels is so tightly interwoven that tax increases for one segment of the population will ultimately affect everyone. Nearly everyone will pay something, either in lower income, higher interest rates or more expensive products, to name just three economic pains the Obama tax hikes will inflict on the economy. The Heritage Foundation’s Center for Data Analysis has run simulations using their Individual Income Tax Model comparing current law with President Obama’s most recent budget proposal which includes: 1) higher taxes on individuals earning more than $200,000 and couples earning more than $250,000; 2) higher taxes on capital gains; 3) higher taxes on dividends; and 4) the return of the death tax. The CDA found that the Obama tax hikes would:

  • Destroy an average of 693,000 jobs every year.
  • Drain $726 billion from disposal income, $38 billion from personal savings, and $33 billion from business investments.
  • Raise taxes on the 55% of all joint filers earning more than $250,000 who run small businesses that employ others.
  • Cost the average non-farm small-business owner $3,500 more in taxes.
  • Cost the 49% of all seniors with income below $250,000 $525 in additional dividend taxes.
  • Cost the 25% all seniors with income below $250,000 $742 in higher taxes.

The bottom line is clear: All Americans would suffer economic harm under the Obama tax hikes. There simply is no justification for raising taxes when the unemployment rate is already near 10%. The American people already know this, which is why the same independents who voted for President Obama by a 52% to 44% margin also oppose the Obama tax hikes. After polling these same independents, Independent Women’s Voice CEO Heather Higgins and former President Bill Clinton pollster Doug Schoen describe what these independents really want: “Decrease the size and scope of government, cut spending and taxes, balance the budget, reduce the federal debt, reduce the power of special interests and unions, repeal and replace the health-care legislation, and decrease partisanship.”

Now that Democrats have decided not to vote before the election on whether to extend the Bush tax cuts, perhaps we should put into perspective exactly why there will be continued uncertainty for individuals and small businesses alike.

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Comments

  1. Bob Upton says:

    The Democrats static view of all things economic brings us to one of two conclusions as to their motivational viewpoint.

    Conclusion #1 – Ignorance
    They never grasped anything beyond basic arithmetic, they don’t know about supply & demand, market forces, consumer confidence, the real meaning of productivity, the dark side of compound interest or income to debt ratios, etc.

    Conclusion #2 – Disregard
    They know all about the dynamic realities of economics but place
    their agendas (i.e. social, political, power, control) ahead of all things real and the tragically real consequences of their disregard.

    Why would we continue to vote for people who don’t know what damage their actions are doing to people and country or just don’t care!

  2. Ha Ha Ha says:

    James M Pratt “DEMS ALLOW AL FRANKEN to serve as a US Senator but ask Colbert to leave a Congressional hearing for his background as a comedian?”

  3. Who needs ya? says:

    I guess One-Liner,Jr., formerly known as all-caps-man will never speak before Congress. Their loss.

  4. Your utility bills will necessarily skyrocket says:

    LONDON – A government fund intended to provide subsidized heating to low-income Britons got some interest from an unexpected source: Queen Elizabeth II, who wanted help paying the bills at Buckingham Palace.

  5. Gail B. says:

    Which way should this administration go to improve our economy? Rest assured that the big wigs know the answer but will go in the opposite direction, just as they have since January 20, 2009.

    We would all be better off if (1) they had done NOTHING, and (2) if they would UNDO everything they have done.

    I’ve never seen such mule-headed people in my life!

  6. Boston Blackie says:

    It is mid Septmeber and we still don’t know what we will be paying for taxes three months from now.
    Then we have this gigolo “representing” us in mASSachusetts.

    http://www.bostonherald.com/news/us_politics/view/20100925john_kerry_democrats_woes_stem_from_uninformed_voters_its_the_electorate_stupid/srvc=home&position=0

  7. Boston Blackie says:

    BTW, have you heard the spin that the democRATS are putting on the extension of the current(Bush)tax cuts. They are calling them the planned Obama tax cuts, really?!?

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  1. [...] here at America’s Right on Friday, something from the Heritage Foundation made its way into Assigned Reading.  It was a sobering look at what Americans will be facing should Congress fail to extend the Bush [...]

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