Diary

Like Oil and Water - A Tax Increase and New Jobs Just Don't Mix!

Last week, President Obama came to Ohio to talk about solving the economic problems facing Ohio and the rest of America.

Instead of laying out a strategy to get our country back on track, he spoke of a new stimulus program, although he didn’t use the word stimulus.  He wants another $50 billion in infrastructure spending, stretched over six years and funded by cuts elsewhere.  The President didn’t mention that his $50 billion infrastructure spending would not create any jobs for almost a year.  He also didn’t mention that although his new spending program would create construction and supply industry jobs, it would necessarily eliminate jobs where the cuts in spending are to take place.  With nearly 15 million people unemployed across our nation, a “wash” is not exactly good news.

The President just doesn’t seem to understand how dire a situation his policies have created.  AND he’s now arguing a step that I believe will certainly make the problem far worse!  He’s proposing the elimination of Bush tax cuts for families earning more than $250,000 a year  — in other words, a TAX INCREASE for all those folk.  He says he would use that revenue to fund a temporary tax credit for business investment.

What he hasn’t told us is that this would hike to 50 percent the marginal tax rates on businesses that account for more than half of all small business profits- yes, that’s right  — he wants to raise taxes on the same small business owners that he’s calling on to hire the unemployed.

I’ve spent the last several weeks “Meeting with Main Street” Ohio and the one thing I’ve heard over and over in shops and offices all along the way is that they aren’t hiring because they don’t have enough customers.  A temporary investment tax credit won’t solve their problem or enable them to hire more employees – but the new taxes and health care mandates might well put them out of business altogether.

A message we need to make clear to the President and Betty Sutton is that tax increases are not going to create new jobs!

Cross Posted at Tom Ganley for Congress.com