The Proposed $1.6 Trillion in Tax Hikes Already Threatening Jobs
As we lurch towards the fiscal cliff Obama is sticking to calls for massive tax hikes.A lesson in economics is about to be taught to Washington D.C.
While the Obama administration believes $1.6 trillion in tax hikes on the wealthiest Americans and corporations will help stave off the "fiscal cliff," it's actually triggering a domino effect of cutbacks, layoffs and growth reduction by American industry.
The fiscal cliff is a combination of spending cuts and tax hikes that will go into effect January 1, 2013, and could cause severe economic shock if steps are not made to reduce it.
Obama is scheduled to meet with several dozen CEO's of some of the nation's top companies Wednesday hoping to, as Fox Business put it, "Tap into their nearly $2 trillion" in cash reserves to help stimulate job creation. But what the president doesn't understand, or refuses to grasp, is the economic reality of the situation.
- After the election, numerous companies began to reduce jobs to offset what they see as millions -- if not tens of millions -- in costs stemming largely from Obamacare and related taxes.
- Fox Business reported Wednesday: "On Monday, Hostess Brands announced it is closing three bakeries and laying off 627 employees. The company joins Boeing Company, Groupon Inc, Applebee's International, Papa John's and Murray Energy, which have all announced layoffs or other job cuts since the election."
- While Obama wants to use corporate money reserves (and taxes) to create jobs and stimulate the economy, he doesn't understand the money comes from taxes, which come from private sector jobs. The more taxes are piled on, the more companies will cut jobs, not build new facilities or grow.
- The CEO of the company that oversees Applebee's had this to say: "Zane Tankel, CEO of Apple-Metro, which oversees Applebee's Restaurant franchises across the country, expressed a common concern about the costs of the federal health care overhaul. 'We've calculated it would be some millions of dollars across our system. So what does that say? That says we won't build more restaurants. We don't hire more people. It's exactly the opposite effect.'"
The so-called "super committee" from congress that was charged with trying to find solutions to avoid the fiscal cliff failed earlier this year. Obama claims it was from Republicans refusing to allow more new taxes to help. But according to Republican Senator Rob Portman of Ohio, the committee was not really "allowed" many options. He told Fox Business Wednesday:
"The president did not weigh in. He issued a veto threat immediately upon our first meeting. He gave Democrats no cover. He showed no leadership, didn't help us on tax reform, or entitlement reform. He needs to be part of this process. That would make a huge difference."
It appears the leader who says (and has said in the past) he will listen to any and all ideas, that he is willing to work with those across the aisle, will only entertain ideas that agree with his. And he appears to be willing to throw opponents of his ideas "under the bus" politically.
It was said at the beginning of the Obama administration in 2009 that he was used to getting his way in the early stages of his political career. Now, entering his second term, he is again being blasted by numerous critics who say he is unwilling to compromise -- even for the good of the country and will end up doing more harm than good.