Washington Democrats are so hell-bent on pushing through President Obama’s job-destroying small business tax hike that they’re increasingly willing to “plunge the nation back into recession” in order to try and get it. From today’s Washington Post:
“Democrats are making increasingly explicit threats about their willingness to let nearly $600 billion worth of tax hikes and spending cuts take effect in January… senior Democrats say they are prepared to weather a fiscal event that could plunge the nation back into recession if the new year arrives without an acceptable compromise.”
Speaker Boehner, a former small business owner, responded to Democrats’ tax increase threat to the economy:
“Has it come to this, that Democrats are willing to hurt jobs and tank our economy for the sake of a small business tax hike that would also have disastrous consequences? Haven’t their policies caused enough hardship for middle-class families and small businesses already? Instead of threatening to derail our economy, Democrats ought to help protect job creators from the president’s small business tax hike. Most Americans want Congress to stop all the tax hikes, and that is exactly what the House will vote to do.”
Democrats’ latest threat comes in a speech by Sen. Patty Murray (D-WA), who says that “if we can’t get a good deal … then I will absolutely continue this debate into 2013.” Of course, a “good deal” for Democrats – massive tax hikes on small business job creators – is a very bad one for the economy. POLITICO notes that “the resulting blow to the economy next year could be enormous.” Federal Reserve Chairman Bernanke told Congress as much last month, testifying that “the shock will probably cause the economy to contract and possibly lead to a recession.”
As a matter of fact, uncertainty surrounding the fiscal cliff is already causing “companies to hold back on hiring and investments.” Doug Elmendorf, the director of the nonpartisan Congressional Budget Office, said last week: “We think it’s an issue now, and it will be increasingly an issue in the second half of the year for people’s decisions.”
Democrats have had to resort to these tactics after being unable to win popular or bipartisan support for the president’s small business tax hike. The president’s attempt to sell Congress was so clumsy that Senate Democrats didn’t even have a bill ready. His attempt to sell the public also hit a roadblock when a new survey showed that most Americans – including some of the president’s “most reliable supporters” – want Congress to stop all the tax hikes, which is what the House will vote to do. The House will also, as part of Republicans’ Plan for America’s Job Creators, lay the groundwork for a simpler, fairer tax code that lowers rates and closes loopholes so that we can keep more jobs here in the U.S. and bring home jobs that have gone overseas.