President's "Political" Tax Hikes Threaten Jobs, Won't Prevent Future Downgrades |

House Republicans have passed more than a dozen jobs bills (and counting) and outlined several potential areas for common ground with the president. You can read them all here in a memo from House leaders to the president, and can learn more about the Republican jobs plan at Jobs.GOP.Gov

But while Republicans are rallying around the Plan for America’s Job Creators and seeking common ground with the White House on removing barriers to job growth, President Obama’s “own party is rejecting his” political debt plan, writes the Wall Street Journal. That’s in part because – instead of offering a serious proposal for reining in our job-crushing spending-driven debt – the president’s plan:

  • Would destroy jobs by raising taxes on small business and capital needed for economic growth: Investor’s Business Daily quotes an economist who says the president’s plan will “raise taxes on capital” and hurt “the people with resources to invest in start-ups, new businesses and growing jobs.” In fact, the proposed tax hike would hit roughly 750,000 small businesses. “There's too much discussion about raising taxes right now,” say Democrats like Senator Ben Nelson (D-NE), and “not enough focus on cutting spending.”
  • Is not “real reform,” won’t prevent future downgrades by ratings agencies: The president’s plan “probably relies too much on ending wars and too little on tackling health care spending to impress Wall Street credit rating agencies,” Reuters reports. “It's not real reform,” said a former U.S. comptroller general. “They're going to have to do more credible things.”
  • Is focused on scoring “political points,” has “little practical value”: The “Buffet Rule is a great populist proposal if the president wants to score some political points, but it has little practical value,” writes The Atlantic. In fact, a chart titled “Good Politics, Weak Deficit-Cutting” shows the proposal “wouldn’t make a dent in the nation’s deficit problem.” Tax experts quoted by the Washington Post call it “more symbol than substance.” Even the Obama Administration now says its governing phase is “behind us” until after the 2012 election.
  • Does “very little” to stop the Washington spending binge hurting job growth: According to the Arizona Republic, President Obama “has proposed a massive tax increase while doing very little to control federal spending.” The op-ed calculates a ratio in the president’s debt plan of “$7 in increased taxes and fees for every $1 in actual spending cuts.” Economist Keith Hennessey says “almost all of the President’s new proposed deficit reduction comes from tax increases.”

As Speaker Boehner said on Monday, “The Joint Select Committee is engaged in serious work to tackle a serious problem: the debt crisis that is making it harder to get our economy growing and create more American jobs.” But unfortunately, “the President has not made a serious contribution to its work…”