Monday, July 9, 2012

Obama, Carmona Want Higher Taxes On Small Businesses

PHOENIX – The Arizona Republican Party today issued the following statement regarding President Obama’s call for higher taxes on job creators, a position that has been echoed by Democrat Richard Carmona:
"President Obama and Democrat Richard Carmona have long supported higher taxes, bigger government and increased spending, so their support for another massive tax hike on Arizona small businesses comes as little surprise. So on the heels of yet another weak jobs report, a massive health care bill that increases taxes on the middle class, and a growing $15 trillion debt, why can’t Richard Carmona answer one very simple question – how does raising taxes on Arizona small businesses create jobs?” -- Tim Sifert, Arizona Republican Party Spokesman


President Obama: "The Last Thing You Want To Do Is Raise Taxes In The Middle Of A Recession." (President Obama, Remarks During An Interview With NBC, Elkhart, IN, 8/5/09)


Roughly 940,000 small businesses will be hit by a big tax hike. According to the National Federation of Independent Business (NFIB),"75 percent of small businesses are organized as pass-through entities meaning they pay taxes on their business income at the individual rate.” The Joint Committee on Taxation (JCT) estimates the tax hike would hit about 940,000 small businesses (see more here from ABC News).

Half of all small business income would face higher taxes. According to Bloomberg News, analysis by JCT also shows President Obama’s plan for massive tax hikes"would mean higher taxes on 53 percent of business income reported on individual returns.”

More than a quarter of American workers’ jobs are at risk."According to U.S. Census data,” says NFIB, small businesses"employ more than 25 percent of the total workforce.” Raising taxes on small businesses threatens these jobs – the last thing we need to do in a weak economy.

Today’s Economy Weaker Than When Obama Extended All Tax Rates

2010 Economic Growth: 3.1%
Real GDP growth over the four quarters before Dec. 2010 tax rate extension: 3.1% (“Table 1.1.1, Percent Change From Preceding Period In Real Gross Domestic Product,” Bureau Of Economic Analysis, Accessed 7/9/12)

2012 Economic Growth: 2.0%
Real GDP growth over the previous four quarters: 2.0% (“Table 1.1.1, Percent Change From Preceding Period In Real Gross Domestic Product,” Bureau Of Economic Analysis, Accessed 7/9/12)

In 2010, Obama Said Tax Increases ‘Would Have Been A Blow To Our Economy’

PRESIDENT OBAMA:" rates for every American were poised to automatically increase on January 1st... would have been a blow to our economy just as we’re climbing out of a devastating recession.” (President Obama, Remarks At Bill Signing, 12/17/10)

OBAMA:"If we allow these taxes to go up, the result would be that a lot of people most likely would spend less, and that means that the economy would grow less.” (President Obama, Remarks, Kokomo, IN, 11/23/10)

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