Research Briefing

Obama To Deliver A Lecture On Deficits And Taxes – Two Subjects Dems Refuse To Act On

“During The Richmond Event, The President Will Talk About The Administration's Efforts To Improve The Sluggish Economy, As Well As Hit On The Deficit And Bush-Era Tax Cuts That Are Due To Expire At The End Of The Year…” (Olympia Meola, “In Richmond, Obama To Discuss Economy, Tax Cuts,” The Richmond Times Dispatch, 9/28/10)

DEMS STALL ON ADDRESSING TAX HIKE, CAUSING ECONOMIC UNCERTAINTY

“Remember, Dems Decided Last Week To Bring This Bill, Not The Bush Tax Cuts, To The Floor For A Vote To Shape The Economic Debate Heading Into The Midterms.”  (Walter Alarkon, “Money In The Morning,” The Hill’s “On The Money” Blog, 9/27/10)

Meanwhile, Small Businesses Hesitant About Their Future Due In Part To Uncertainty Surrounding The Dems’ Tax Hike. “Joy Staveley of Flagstaff, Ariz., said it was clear to her why people are more scared to take a risk on a new business: There are more regulations, taxes and government-mandated costs -- and fears of more to come -- with President George W. Bush's tax cuts expiring soon, new healthcare rules and pending legislation on energy.” (Don Lee, "Small Business Sidelined In Slow Recovery From Recession," The Los Angeles Times, 7/3/10)

Business Owners Have Been “Operating For The Last Year And A Half In Conditions Of Perfect Uncertainty.” “"Economists and business owners say they've never seen anything like it: The Bush tax cuts are expiring, health care reform is confusing, deficits are exploding, cap-and-trade is looming - and political leaders are too busy fighting among themselves to offer any reliable vision of the future. Little wonder, then, that businesses are frozen, afraid to hire or make any other long-term plans. 'We've been operating for the last year and a half in conditions of perfect uncertainty,' said David J. Ward, president of Madison-based consulting firm NorthStar Economics Inc., adding that he has never before seen such economic doubt in his 45 years as an economist.” (Joe Taschler, "As Politicians Fight, Businesses Wait For A 'Go' Sign," Milwaukee Journal-Sentinel, 8/29/10)

Terry McAuliffe Says Businesses Need Certainty And Need To Know What Their Tax Rates Are Going To Be.  “As I say, I’m in a business where we’re going to create 3,000 to 5,000 jobs over the next 24 months, I’ve got to know what the capital gains rate is going to be, I’ve got to know what the business deduction rates are going to be. We need some certainty because you can't spend money if you don't know what your costs are going to be. And I think that's one of the biggest hang-ups we have today, is we've got to get certainty about what the costs are going to be. People are trying to figure out what their health care costs are going to be.” (MSNBC’s “Morning Joe” 9/23/10)

AND OBAMA’S AND DEMS ANSWER TO SKYROCKETING DEFICITS?

“WE’LL GET BACK TO YOU LATER”

Democrats Punted The Most Difficult Budget Decisions Off To The President’s Debt Commission. “The most painful budget questions where and how to raise taxes or cut popular benefit programs, or both were handed them off to bipartisan fiscal commission, which many budget experts believe is unlikely to succeed in coming up with a deficit-cutting plan.” (Andrew Taylor, “Democrats Face Budget Decisions Way Past Deadline,” The Washington Times, 6/6/10)

The Associated Press: President Obama’s Fiscal Commission Lacks Teeth And “Would Stand Almost No Chance Of Success.” “President Barack Obama told Americans the bipartisan deficit commission he will appoint won’t just be ‘one of those Washington gimmicks.’ Left unspoken in that assurance was the fact that the commission won’t have any teeth… Any commission set up by Obama alone would lack authority to force its recommendations before Congress, and would stand almost no chance of success.” (Calvin Woodward, “FACT CHECK: Obama And A Toothless Commission,” The Associated Press, 1/28/10)

As A Candidate, Obama Mocked Commissions Saying That They Are “Washington-Speak For ‘We’ll Get Back To You Later.’” “As a presidential candidate, Barack Obama described the political value of a commission at a campaign event in 2008, just after the economy took a nosedive. ‘Sen. [John] McCain's big solution to the crisis we're facing is — put on your seat belts — a commission,’ he said. ‘A commission. You know, that's Washington-speak for 'we'll get back to you later.’”  (Ari Shapiro, “Once A Critic, Obama Now Embraces Commissions,” NPR, 6/30/10)

DEMS FAILURE TO ADDRESS LOOMING TAX HIKE MEANS MIDDLE CLASS FAMILIES IN VIRGINIA AND ACROSS THE U.S. WILL SEE DRASTIC TAX INCREASES

Obama’s Tax Hike Will Result In A $3.9 Trillion Tax Increase.  (Thomas A. Barthold, Chief of Staff For The Joint Committee On Taxation, Memo To Jon Traub and Dave Olander, 8/6/10)

As A Result Of Obama’s Tax Hike, The Average Middle Class Family In Virginia Will See A Tax Hike Of $1,615.  (“Effect of Expiration of Bush-Era Tax Cuts on Average Middle-Income Family, By State and Congressional District,” Tax Foundation, 8/1/10)

• The Average Middle Class Family Across The United States Will See A Tax Hike Of $1,540.  (“Effect of Expiration of Bush-Era Tax Cuts on Average Middle-Income Family, By State and Congressional District,” Tax Foundation, 8/1/10)

CNN’s Allan Chernoff: “President Obama Pledged To Let Taxes Rise Only On Families Earning More Than $250,000 Per Year, But As Things Stand Right Now, Tens Of Millions Of Americans Who Earn Less Are About To Get Whacked By New, Higher Tax Rates.” (CNN, “Rick’s List,” 8/3/10) 

“[Sen. Joe] Lieberman Said Delaying Action Creates A ‘Possibility’ The Cuts Will Expire And Everybody’s Taxes Would Go Up. ‘I Think When We Come Back In November Or December, The First Thing Is We’ve Got To Extend These Tax Cuts.’” (Ryan J. Donmoyer, “Democrats, Axelrod Say Obama Tax Plan To Pass After Election,” Bloomberg, 9/27/10)

AND EVEN IF DEMS ACT, OBAMA PLANS TO HIT JOB CREATORS WITH HIGHER TAXES

SO HE CAN CONTINUE BINGE SPENDING

Obama’s Reasoning For Imposing A Tax Hike On Small Businesses And Job Creators:  “[T]here Are A Whole Bunch Better Ways To Spend The Money.”  (George Stephanopoulos, “President Obama To Pastor Jones: ‘Stunt’ Endangers Troops – Full Transcript Of Exclusive Interview,” ABC News’ “George’s Bottom Line” Blog, 9/9/10)

Nearly Half Of Small Business Income Would Be Hit By Dems’ Tax Hike. “The numbers are clear. According to IRS data, fully 48% of the net income of sole proprietorships, partnerships, and S corporations reported on tax returns went to households with incomes above $200,000 in 2007. That's the number to look at, not the 3%.” (Kevin A. Hassert and Allan D. Viard, Op-Ed, "The Small Business Tax Hike And The 97% Fallacy," The Wall Street Journal, 9/3/10)

Chicago Tribune Editorial Board On The Dems’ Tax Hike: “More Likely, Congress And The President Would Spend Every Extra Nickel — And Then Spend Some More.”  (Editorial, “Out Of Debt,” The Chicago Tribune, 8/1/10)

Since President Obama Took Office His Policies Have Added Over $2.8 Trillion To The National Debt. (Department Of The Treasury, “The Debt To The Penny And Who Holds It,” TreasuryDirect.gov, Accessed 9/8/10)

The Total Debt Of The US Government Is $13.4 Trillion Dollars. (Department Of The Treasury, "The Debt To The Penny And Who Holds It," TreasuryDirect.gov, Accessed 9/8/10)

“At Least Five Senate Democrats And All 41 Republicans Say Bush- Era Tax Cuts Should Be Extended Across-The-Board To Help The Economy Recover From The Worst Recession Since World War II.” (Ryan J. Donmoyer, “Democrats, Axelrod Say Obama Tax Plan To Pass After Election,” Bloomberg, 9/27/10)

Moody’s Chief Economist Mark Zandi: “I Wouldn’t Raise Anyone’s Taxes. The Recovery Is Just Too Fragile To Take That Chance. These Aren’t Normal Times. High-Income Households Are Very, Very Fragile.” (CBS, “Face The Nation,” 9/5/10)