The Leader Board
Jul 17 2012
A New Study Reveals That President Obama's Tax Hike Will Lead To '710,000 Fewer Jobs,' & 'A Decline In Workers' Living Standards'
'710,000 Fewer Jobs,' 'Wages Would Fall'
NEW STUDY (Ernst & Young): "This report finds that these higher marginal tax rates result in a smaller economy, fewer jobs, less investment, and lower wages. Specifically, this report finds that the higher tax rates will have significant adverse economic effects in the long-run: lowering output, employment, investment, the capital stock, and real after-tax wages when the resulting revenue is used to finance additional government spending." ("Long-Run Macroeconomic Impact Of Increasing Tax Rates On High-Income Taxpayers In 2013," Ernst & Young LLP, P.i, 7/12)
NATIONAL FEDERATION OF INDEPENDENT BUSINESSES: "This report clearly shows that raising taxes on job creators will have a negative impact." (NFIB, Press Release, 7/17/12)
'710,000 Fewer Jobs,' 'Wages Would Fall By 1.8%'
- Employment in the long-run would fall by 0.5% or, roughly 710,000 fewer jobs, in today's economy."
- "Output in the long-run would fall by 1.3%, or $200 billion, in today's economy."
- Real after-tax wages would fall by 1.8%, reflecting a decline in workers' living standards relative to what would have occurred otherwise." ("Long-Run Macroeconomic Impact Of Increasing Tax Rates On High-Income Taxpayers In 2013," Ernst & Young LLP, P.ii, 7/12)
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