Study: Obama And Democrats Proposed Tax Hikes Would Cost 700,000 Jobs And Cut Economic Growth

Gotta spread that wealth around.

The U.S. would lose 710,000 jobs and economic output would decline by 1.3 percent [projected GDP is already crashing], or $200 billion, if tax cuts for high earners are allowed to lapse, said a report prepared for the U.S. Chamber of Commerce and other supporters of the tax breaks.

The study by Ernst & Young LLP supports Republican efforts to extend all of the George W. Bush-era tax cuts set to expire at the end of the year. President Barack Obama called on Congress last week to pass a one-year extension of tax cuts for married couples making less than $250,000 a year while letting rates rise for higher earners.

“The higher tax rates will have significant adverse economic effects in the long run: lowering output, employment, investment, the capital stock and real after-tax wages when the resulting revenue is used to finance additional government spending,” wrote the report’s authors, Robert Carroll and Gerald Prante.

Democrats are objecting to this study because A-The Chamber of Commerce is evil and B-Obama and congressional Democrats swear that the increased revenue they bring in through tax hikes (that likely will not materialize) won't go to more spending but to to reducing the deficit.

Why would anyone think Democrats are lying when they say the won't increase spending? Other than history and Obama's promise to increase spending because the private sector is "doing fine" of course.

posted by DrewM. at 10:12 AM

| Access Comments