Perhaps the president simply changed his mind.
A new study conducted by Ernst and Young proves conclusively that the President’s tax increase would be devastating to the economy and jobs.
The study finds that, if Congress misguidedly adopted President Obama’s plan to raise taxes on job creators by allowing the Bush-era tax policies to expire for incomes over $200,000 ($250,000 for married filers), the economy and jobs would suffer terribly:
- 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 or, 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; and
- Real after-tax wages would fall by 1.8 percent.
There are almost 13 million Americans out of work today. President Obama’s tax increase would needlessly add almost three-quarters of a million people to that already much too large number. Even those with jobs wouldn’t escape the pain of President Obama’s tax increase, as they would see their wages suffer.
Look, folks: just do whatever the president tells us to do. Ours is not to ask questions, no matter how many failed policies and edicts he may issue. He has far more experience with businesses of every variety and size than all of us, so I'm certain his decisions will work out. Someday.
Image hat tip: Moonbattery.