Dems “Balk” at President’s Plan to Raise Taxes on Job Creators, Back Bipartisan Plan to Stop the Tax Hike for Jobs

Posted: June 19, 2012 in Jobs
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From Speaker John Boehner:

A growing number of Senate Democrats are signaling they are not prepared to raise taxes on anyone in the weak economy,” The Hill reports today, adding that 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.” According to the report, at least seven Democrats oppose President Obama’s plan to raise taxes on small business job creators, and are signaling support for the bipartisan plan to stop all of the tax hikes. Here’s more:

“At least seven Democratic senators have declined to rule out supporting a temporary extension of the Bush-era income tax rates, breaking with party leaders who have called for letting the rates expire

“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. …

“All seven Democratic senators voted to extend the Bush-era income tax rates at the end of 2010, persuaded by arguments that the economy was too fragile to risk a tax hike on wealthy families and small businesses.

The quandary these Democrats now face has changed little from two years ago and by some indicators has actually gotten worse. …

“Last month, the Commerce Department revised GDP growth for the first quarter of this year down to 1.9 percent. …

“Republicans say the struggling economy will put pressure on … other centrist Democrats to support a one-year extension of the Bush tax rates, which McConnell and House Speaker John Boehner (R-Ohio) called for earlier this month.

The growing support for the bipartisan plan to stop the tax hike comes as a new report shows that allowing any of the current tax rates to increase “will weigh heavily on economic growth and lead to millions of job losses, likely plunging the economy back into recession.” (The Hill, 6/15/12) The House Ways & Means Committee says the looming tax hike – “the largest tax increase in American history” – “would have a devastating effect on the economy,” at a time when the median wage is lower “than it was a decade earlier.”

Leery of the economic fallout that will ensue if the current rates are not extended, other leading Democrats, including former President Bill Clinton and Senate Budget Committee Chairman Kent Conrad (D-ND) have also backed the bipartisan plan to extend all of the current tax rates, which will “help job creators gain a little more confidence and put Americans back to work,” Speaker Boehner said in reaction to last month’s bleak jobs report.

Bolstered by the growing bipartisan consensus that raising taxes will further damage the already-struggling economy, House Republicans are moving forward with a plan to stop all of the tax hikes and help create more American jobs. The House will vote next month to extend all of the current rates to give job creators the certainty they need to begin hiring again. Facing increasing discord within his own party, President Obama ought to work with Republicans now to stop the tax hike that will hit every American on January 1st.

Learn more about Republicans’ effort to create a better environment for private-sector job growth at jobs.gop.gov, and weigh in with your thoughts on stopping the tax hike by using the #stopthetaxhike hashtag on Twitter.

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