Obama Tax Hikes Will Cost 710,000 Jobs

According to the accounting firm Ernst & Young, under the Obama tax hikes, employment in the long run would fall by 0.5 percent or, roughly 710,000 fewer jobs and after-tax wages would fall by 1.8 percent.

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.

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