Tag Archives: Small Business

News

Democrat Steny Hoyer: unemployment checks and food stamps stimulate the economy

1 Comment

Why are we in a recession? Maybe it’s because the people running the country believe that unemployment checks and welfare are better than earned paychecks for “stimulating” the economy.

Here’s CNS News to explain what Democrats are trying to achieve:

House Minority Whip Steny Hoyer (D-Md.) said Tuesday that food stamps and unemployment insurance are the two “most stimulative” things you can do for the economy.

During a pen and pad briefing with reporters on Capitol Hill, Hoyer was asked if any Democrats are “reconsidering the wisdom” of letting the Bush tax cuts expire at year’s end for the top income earners given the still struggling U.S. economy.

“I haven’t talked to any who are of that mind,” said Hoyer. “If you talk to economists, they will tell you there are two things that are the most stimulative that you can do — one’s unemployment insurance, the other’s food stamps, okay?”

“Why is that?” he said.  “Because those folks who receive those resources must spend them. And they’ll spend them almost upon receipt. Most economists with whom I talk believe that those with significant discretionary income, that that’s not the case.”

Unless action is taken by Congress, the Bush tax cuts will expire on Jan. 1, 2013.  Originally enacted in 2001 and 2003, President Barack Obama and Congress renewed the cuts for all income-brackets for two years in 2010.

[…]The Congressional Budget Office (CBO has projected that if the Bush tax cuts are allowed to expire at the end of 2012, coupled with the defense cut sequester, it will lead to a 1.3 percent contraction in GDP after Jan. 1, 2013.

If the Bush tax cuts are allowed to expire, it is expected that 710,000 people will lose their jobs. This will achieve the Democrats goal of “stimulating the economy” with higher unemployment and more food stamps. This continues the Democrat plan of increasing the record number of people on welfare and food stamps. They will pay for this “stimulus” by adding more debt to the $8 trillion they have already run up since January 2007. The debt will be paid by young people and children. The real plan behind making millions of people dependent on government is, of course, to be able to buy their votes and to control them. Democrats are the anti-freedom party. You have too much freedom when you have a job. It leads to “inequality”. If everyone received their daily bread from the government, and rode on mass transit to labor camps instead of driving in cars, and slept in identical apartments with identical furniture and identical television programs to watch, then the world would be more equal. And equality is what Democrats want most.

So what is the Republican alternative plan for the economy? To let job creating businesses keep their own money and hire people to do work. Republicans want to stop taxing and regulating job creating businesses so that people can be put back to work, and have the confidence to spend money. That’s how you stimulate the economy – we know this because it has worked for Reagan and Bush before. Obama’s approach has never worked. The Democrats have been running the show since January 2007. And that’s why we are down 5 million jobs since Steny Hoyer became the House Whip in January of 2007. This is not going to end until the Democrats are voted out.

News

New Ernst and Young report: proposed tax increases will cost 710,000 jobs

6 Comments

Here’s the news from The Hill:

Allowing tax rates for the country’s highest earners to rise, an idea endorsed by top Democrats, would have a dire effect on the economic recovery, according to a new report prepared for business groups that was released Tuesday.

The study from Ernst & Young found that letting tax rates for the wealthiest Americans lapse would sap $200 billion and some 700,000 jobs out of the economy, reduce wages by 1.8 percent and lead to a decrease in investment.

“These results may suggest to policy makers that allowing the top tax rates to increase comes with economic consequences,” Ernst & Young’s Robert Caroll and Gerald Prante wrote in the report for the Independent Community Bankers of America, the National Federation of Independent Business, the S Corporation Association and the U.S. Chamber of Commerce.

“Long-run output can be expected to fall, and, depending on the use of the revenues, living standards, as reflected by workers‟ real after-tax wages, may also be lower.”

Top Republicans, including House GOP leaders and committee chairmen, jumped on the Tuesday report, as they continue to battle with President Obama and Democrats over how to proceed on tax issues and the broader fiscal cliff.

Obama reiterated last week his plan to only extend the Bush-era rates for annual family incomes up to $250,000 for another year, a proposal many congressional Democrats have coalesced behind. Republicans on the Hill want to extend all current rates for a year.

The key findings are here on the House Ways and Means Committee‘s web site:

Lower wages, fewer jobs and less investment

  • Output in the long-run would fall by 1.3 percent, or $200 billion in today’s economy.
  • Employment in the long-run would fall by 0.5 percent, meaning roughly 710,000 fewer jobs in today’s economy.
  • Capital stock and investment in the long-run would fall by 1.4 percent and 2.4 percent, respectively.
  • Real after-tax wages would fall by 1.8 percent, reflecting a decline in workers’ living standards relative to what would have occurred otherwise.

Every state in the U.S. feels the impact of tax hikes

  • The report, which offers a state-by-state look at the impact on economic output and employment, finds that every state is affected negatively by the tax increases contemplated by the Obama Administration.

Ernst & Young is one of the top financial firms in the world. The report is entitled “Long-run macroeconomic impact of increasing tax rates on high-income taxpayers in 2013”.

Even though Obama has increased our debt by nearly 6 trillion in less than four years, that money hasn’t created any jobs because government is not efficient at creating jobs that last. When you take money away from people who create jobs, you lose the jobs.  Wasting money on green energy firms that go bankrupt is a great plan to pay back your campaign fundraisers, but it’s not a good plan to create jobs. Bailing out labor unions with billions of taxpayer dollars so that they can create electric cars that catch fire is not the right way to create jobs, either. That’s what the stimulus was – $800 billion dollars taken out of the hands of businesses and sent directly to Obama’s allies. We need to get the government out of our business if we want job creation.

Polemics

Obama says that small business owners didn’t build their own businesses

10 Comments
Barack Obama: Budget Deficits
He feels comfortable spending other people’s money: why?

It’s right on the White House web site, cached on National Review:

. . .There are a lot of wealthy, successful Americans who agree with me — because they want to give something back. They know they didn’t — look, if you’ve been successful, you didn’t get there on your own. You didn’t get there on your own. I’m always struck by people who think, well, it must be because I was just so smart. There are a lot of smart people out there. It must be because I worked harder than everybody else. Let me tell you something — there are a whole bunch of hardworking people out there. (Applause.)

If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business — you didn’t build that. Somebody else made that happen.

The Internet didn’t get invented on its own. Government research created the Internet so that all the companies could make money off the Internet. The point is, is that when we succeed, we succeed because of our individual initiative, but also because we do things together. There are some things, just like fighting fires, we don’t do on our own. I mean, imagine if everybody had their own fire service. That would be a hard way to organize fighting fires. . .

See, that’s why Obama is so confident about talking the money earned by businesses owners and their employees. You don’t really run your own business, Obama does. He is the one who puts in the 70 hour weeks and takes the risks and borrows money from family. When I was working 70 hour weeks in IT start-ups, that wasn’t me working those hours, that was Obama. That’s why he’s entitled to tax me so much. He was actually working weekends to earn my salary. He has a right to my salary, because I didn’t really earn it.

FLASHBACK: Obama says that limited government and capitalism have never worked