According to the just-released report from the Congressional Budget Office (CBO), the nation would plunge into a “deep recession” if it goes over the fiscal cliff on January 1 – a scenario Democrats have welcomed in their push for higher taxes on small businesses:
- “Democrats willing to risk tax hikes for all. … Democrats are going all-in in a fiscal game of chicken, saying they'll let everyone's income taxes rise on Jan. 1 and slash defense spending amid 8-plus percent unemployment…” (Associated Press, 7/17/12)
- “Congressional Democratic leaders made clear Monday that they have no interest in averting the bleak scenario if Republicans continue to refuse to soften their hard-line opposition” to the president’s small business tax hike.” (Los Angeles Times, 7/17/12)
- “Democrats are exploiting the pending deadlines, which they acknowledge could hurt the economy if fully implemented…" (Roll Call, 7/18/12)
- Sen. Patty Murray (D-WA) “may think she's putting Republicans on the political spot, but her real hostage is the already weak economy. Growth in the first quarter was a mere 1.9 percent, and economists have steadily downgraded their expectations for the second. As the tax cliff approaches, the policy uncertainty is already causing businesses to hold off on hiring and investment.” (Wall Street Journal editorial, 7/18/12)
- “Senate Majority Whip Dick Durbin (D-Ill.) … warned of the possibility of tax hikes on the nation’s middle class…” (The Hill, 7/18/12)
- “Democrats are the ones threatening economic ruin….” (The Atlantic, 7/16/12)
“Instead of threatening to drive us off the fiscal cliff and tank our economy in their quest for higher taxes, I would urge President Obama and congressional Democrats to work with us to stop the coming tax hike that threatens our economy and replace the looming defense cuts with common sense reforms,” said Speaker John Boehner today.
In fact, only Republicans have passed legislation to (1) stop the tax hike that Ernst & Young says could destroy more than 700,000 U.S. jobs; and (2) replace the sequester that would harm our national security with common-sense spending cuts and reforms. House Republican leaders sent a letter to Senate Majority Leader Harry Reid (D-NV) pledging to call the House back into session during August if the Senate followed the House and brought legislation to a vote stopping all of the coming tax hikes that threaten our economy and replacing the ‘sequester’ defense cuts that threaten our national security.
Republicans have done everything within our power to help our economy and fix this problem, but the ball is squarely in the Democrats’ court. Will they work with Republicans to protect jobs and middle class families? Or will they tank our economy in pursuit of higher taxes?