New Report Confirms Obama’s Small Business Tax Hike is a Blow to the Economy

  • A new Ernst & Young report concludes that the president’s tax hike would be a major blow to America’s small businesses and the economy.
  • With 23 million Americans out of work or underemployed and unemployment above 8 percent for 41 straight months, now is not the time to raise taxes on nearly one million businesses.
  • Today’s economy is weaker than it was in 2010 when President Obama and 40 Senate Democrats agreed with Republicans that raising rates would hurt the economy.

New Report Finds Small Business Tax Hike Will Destroy Jobs and Harm the Economy

  • Fewer Jobs: 710,000 jobs lost
  • Lower Wages: 1.8 percent cut
  • Less Investment: 2.4 percent reduction
  • Smaller Economy: 1.3 percent less growth

The Economy Is Already Struggling Under President Obama’s Failed Policies:

  • The unemployment rate has been above 8 percent for 41 consecutive months.
  • Over 23 million Americans are currently unemployed or underemployed.

President Obama and 40 Senate Democrats Agreed Rates Should Be Extended in 2010:

  • In 2010, President Obama said that extending the current tax rates was “the right thing to do for our economy,” and 40 Senate Democrats voted to prevent tax increases on small business owners.
  • Economic growth this past year (averaging 2 percent) is weaker than it was in 2010 (3.1 percent).

The president should work with Congress to extend all the tax rates while we focus on fundamental tax reform.