Obama Tax Hikes Will Cost 710,000 Jobs

Raise your hands. Who wants to increase our already high unemployment rate? Apparently the answer is Barack Obama.

According to the accounting firm Ernst & Young, the Obama tax hikes for incomes over $200,000 ($250,000 for married filers) would drain funds from the most successful small-business employers, who employ 54 percent of the private workforce.

Output in the long run would fall by 1.3 percent, or $200 billion, in today’s economy;

Employment in the long run would fall by 0.5 percent or, roughly 710,000 fewer jobs, in today’s economy;

Capital stock and investment in the long run would fall by 1.4 percent and 2.4 percent, respectively; and

Real after-tax wages would fall by 1.8 percent.

The increase in the top tax rates would reduce long-run output by 1.3% when the resulting revenue is used to finance additional government spending. Employment is found to fall by 0.5%.

That’s a complicated way of saying that you can either have a welfare state or you can have an economy. But when you add to the welfare state, you subtract from the economy. And at some point you end up with too much welfare state and not enough economy.

  • PaulRevereNow

    How can the GOP Senators who called for a committee to investigate Benghazi get around Harry Reid?
    Doesn't have anything to do with the economy? You bet it does. Obama needs to be impeached; ASAP.

    • Mary Sue

      Harry Reid needs to be voted out.

  • Mary Sue

    We went through 12 years of NDP, and the resulting decline in economic growth, until the populace woke up and kicked them out. It wasn't merely the "welfare state" that was their undoing, it was also profligate spending and "corporate welfare". Skeena Cellulose was a losing proposition and the NDP continued to pour money into it like it was the Money Pit, which it certainly was. It was unsaveable. Then there were the "FastCat" ferries which were completely unsuitable.

    Longtime NDP supporters were voting Liberal when they realized what was going on, and they turfed out the NDP in favor of the Liberals, who got the economy back on track and changed us from a "Have-not" province to a "Have".

    Now why can't Americans learn to vote against the party in power like that?