According to Bloomberg News, a new report from the Joint Committee on Taxation shows President Obama’s plan for massive tax hikes “would mean higher taxes on 53 percent of business income reported on individual returns.” In other words: big tax hikes on families and small businesses.
In fact, the House Ways & Means Committee says the president’s tax hikes “will affect every American who pays income taxes through higher tax rates on individuals, families, and small businesses” – even though they’re still struggling in the Obama economy.
For families, prices are rising, wages are stagnant, and the unemployment rate has been higher than 8 percent for 40 months. The New York Times says “many middle-class and working-class people who are fortunate enough to have work are struggling” as prices for “college, health care and even, recently, food” are all rising.
And yet, the president’s tax hike would mean “a family of four earning $50,000 would owe Uncle Sam another $2,200 next year if nothing is done,” reports the Washington Times. “A single mother earning $36,000 would see her tax burden almost double. Married seniors on a fixed income of $40,000 would have to come up with another $1,700 to pay the Internal Revenue Service.”
The threat of tax hikes and laws like ObamaCare (which is raising costs and making it harder to hire new workers) are also making things worse for small businesses. The Associated Press says “[e]mployers in April posted the fewest job openings in five months,” with the drop “concentrated in the private sector” – directly contradicting President Obama’s claim that “the private sector is doing fine.”
This is why the House will vote next month to stop all of the tax hikes, and to lay the groundwork for enacting a simpler, pro-growth tax code next year. Several top Democrats are bucking the president and backing this bipartisan plan, in part because they “do not want to have to explain an across-the-board tax hike to constituents when economic growth is sluggish and unemployment is high.”
It’s also why the House has passed more than 30 jobs bills removing government barriers to job growth, and is working to pass the Domestic Energy & Jobs Act this week. Learn more about these bills at jobs.GOP.gov and see a full list here – including which bills are still being blocked by Senate Democrats.