There Is A Better Way →

Job creators, economists, and fiscal watchdogs have their fair share of concerns about President Obama’s debt plan, starting with its centerpiece: a tax hike on small businesses and capital, the key ingredient for job creation in America.  Rick Davidson, the CEO of Century 21 Real Estate, says the president’s plan is “cause for concern” because it could penalize “many small-business owners.”  Economists vouch for this assessment: Peter Morici, an economist at the University of Maryland, said the president’s proposed tax hikes “would discourage hiring by many smaller businesses.”  Fiscal experts also agree:  Pamela Villarreal, senior fellow at the National Center for Policy Analysis, emphasizes that “the worst time to raise taxes is during a recession,” saying that if employers “have less to invest in job creation that trickles down to the rest of the economy.”  These independent voices also pan the president’s use of dodges and gimmicks to avoid tackling the debt that is undermining our economy. 

If we want America’s job creators to do what they do best, we need to get government out of the way,” Speaker Boehner said in an interview with Gerri Willis of Fox Business.   Removing government barriers to private-sector job creation is the focus of Republicans’ jobs plan, which is designed to stop Washington from spending money it doesn’t have, eliminate excessive government regulations, and fix our tax code for families and small businesses. 


  • Rick Davidson, president and CEO of Century 21 Real Estate “said he is trying to stay optimistic about President Obama’s jobs bill proposal but said the commander-in-chief’s comments this week are cause for concern.  ‘The president talked about more taxes for Americans who make $1 million or more a year,’ but that would penalize many small-business owners if their operations are counted as income.  ‘Most of the job creation is going to come from small business,’ Davidson said. ‘There’s a difference between a company’s income and an individual’s income.” (Fort Wayne Journal Gazette, 9/21/11)

  • Bernie Marcus, a co-founder of The Home Depot, Inc. … says President Barack Obama’s plan … would only serve to slow hiring and slow America's economic recovery… ‘…the entire wealth of this country has come out of job creators and job creation is the name of the game.   Those are the people that count so you don't want to put them out of business," Marcus told WXIA.” (Atlanta Business Chronicle, 9/20/11)


  • Glenn Hubbard, dean of Columbia Business School: “This is particularly true for the president’s proposal to reduce the employer portion of the payroll tax for small- business owners, while proposing to raise marginal tax rates on those same business owners.  The president’s advocacy for higher marginal tax rates on the well-to-do dampens both job creation and asset prices.  And, it is a collapse in job creation that lies at the core of the present unemployment problem.” (Bloomberg, 9/21/11)

  • Peter Morici, University of Maryland economist:The taxes [President Obama] wants—jacking up rates on high income individuals—would discourage hiring by many smaller businesses like machine shops and restaurants, whose owners already face marginal rates near 60 percent, counting state taxes.” (Fox News, 9/21/11)

  • Ray Keating, chief economist with the conservative Small Business Entrepreneurship Council, responds, ‘That's going to raise taxes on capital. Among high-income earners, you're talking about the people with resources to invest in start-ups, new businesses and growing jobs." (Investor’s Business Daily, 9/19/11)

  • Douglas Holtz-Eakin, former director of the Congressional Budget Office: This would literally be tax and spend. That’s what this is… It’s an incoherent mishmash — it has no philosophy other than, ‘Let’s get some money.” (The Washington Times, 9/12/11)

  • Mira Farka, an economist at Cal State Fullerton, said there really isn't enough information out about the Buffett Rule to know it's impact, but thought it made for better campaign rhetoric than actual deficit reduction. … ‘And our problems are in the trillions," she said. ‘I just don't see it making a considerable dent.’  Farka said the deficit issue really can't get resolved until Washington addresses the big entitlement programs.” (Orange County Register, 9/19/11)


  • Pamela Villarreal, senior fellow at the National Center for Policy Analysis in Dallas: “The worst time to raise taxes is during a recession.  … If they have less to invest in job creation that trickles down to the rest of the economy.” (The Christian Science Monitor, 9/19/11)

  • David Walker, former U.S. comptroller general: "It's not real reform, and so you really need to do more substantive things that have a longer-term impact.  They're going to have to do more credible things."  (Reuters, 9/20/11)

  • Maya MacGuineas, president of the bipartisan Committee for a Responsible Federal Budget: The president’s plan “doesn’t produce any more in realistic savings than the plan they offered in April.  They’ve filled in details, repackaged it and replaced one gimmick with another.  They don't even stabilize the debt.  This is just not enough.” (The Washington Post, 9/19/11)
  • Rudolph Penner, a former director of the Congressional Budget Office, “said rating agencies would not be impressed by Obama's failure to recommend deeper healthcare cuts.   ‘If I were S&P I would not change my rating on the basis of this proposal,’ he said.” (Reuters, 9/19/11)

  • Robert Bixby, executive director of the bipartisan Concord Coalition: “There are, of course, some legitimate proposals here, but not the kind of structural changes that are needed in entitlement programs and tax expenditures to put the budget on a sustainable path.”  (The Washington Post, 9/19/11)

  • Former President Bill Clinton tells Newsmax that Washington should not raise taxes until the slumping economy is turned around — and says President Obama’s plan … won’t solve the debt problem.” (Newsmax, 9/20/11)