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Manufacturers: POTUS’ Tax Hike on Job Creators “A Fundamentally Bad Move”
While out campaigning yesterday, President Obama told supporters, “We've got too much work to do to create good jobs.” He’s also said he supports “bringing manufacturing and construction jobs back.” What the president doesn’t tell his audiences is the centerpiece of his campaign – a massive tax hike on small businesses – will actually hurt manufacturers and destroy hundreds of thousands of jobs.
According to the National Association of Manufacturers (NAM), President Obama’s “tax increase on those making over $250,000 per year is a tax increase on manufacturers”:
“Nearly two-thirds of manufacturers pay taxes at the individual rate and they need those resources to invest in their companies and hire workers. In fact, according to a recent NAM/IndustryWeek survey, 56 percent of these manufacturers indicated that higher taxes will negatively impact business investment or job creation and retention. President Obama has said himself that it’s a terrible idea to raise taxes in a struggling economy and he was right when he said that.
“S-corporations and other flow through entities employ 54 percent of the private sector workforce. Increasing the tax burden on these job creators is a fundamentally bad move and will hurt our fledgling economic recovery.”
A nonpartisan study by Ernst & Young found the president’s tax hike would destroy more than 700,000 jobs and – for those lucky enough to have a job – would result in lower wages. Just the threat of higher taxes has small businesses “putting off new hires.”
That’s why the House already voted to stop all of the president’s tax hikes that threaten middle class families and small businesses, and to replace the ‘sequester’ defense cuts that threaten our national security.
The Washington Post warns that failure by Senate Democrats and the president to follow the House “could shrink the economy by about 3 per cent in the first half of 2013, at the cost of 1 million to 2 million jobs, the Congressional Budget Office estimated months ago.” That’s bad news for struggling families when the unemployment rate has already been above eight percent for 42 straight months.
The House has also passed more than 30 other jobs bills, and voted to begin fixing the tax code – a key part of the GOP jobs plan – to help keep jobs here and bring home some of the jobs that have gone overseas. While President Obama insults small businesses and pats himself on the back for his failed policies, the House has focused on removing barriers to job growth – now we need Senate Democrats to do the same. Republican leaders are ready to reconvene if and when they do.