CBO Says Scheduled Tax Increases Will Hinder Economic Recovery
Washington- Congress is scheduled to adjourn today or tomorrow, and vulnerable House Democrats like Carol Shea-Porter are ready to bolt without calling for an open and fair debate or taking an up-or-down vote on the looming Obama tax hike. The country continues to suffer under the consequences of the Democrats’ failed economic agenda, yet Shea-Porter has done nothing to spare the American people from this devastating tax hike set to take effect at the first of next year. As struggling middle-class families and small businesses across the country brace for impact, the non-partisan Congressional Budget Office (CBO) reports that without action from Congress the scheduled tax increases will further impede economic recovery:
“The Economic Outlook released by the Congressional Budget Office (CBO) on Tuesday states that coming tax hikes will hinder spending and hurt recovery efforts.
‘[The] scheduled increases in taxes and the waning of fiscal policy measures that supported the economy earlier in this recovery will hold down spending, especially in 2011,’ it states. ‘The weak demand for goods and services resulting from those various factors is the primary constraint on economic recovery.’” (Jay Heflin, “CBO: Scheduled tax increases will hinder recovery,” The Hill, 09/28/20)
“While Obama continues to push House Democrats to increase taxes on small businesses, Carol Shea-Porter and her Washington friends who continue to remain silent are neglecting to listen to the people back home that put them in office,” said NRCC Communications Director Ken Spain. “American families are pleading for Democrats to stop the impending Obama tax hike and nonpartisan economists warn of the devastating consequences that Congress’ inaction will have on the economy – yet it seems that vulnerable Democrats like Carol Shea-Porter are the only ones who still have not received the message.”
With Democrats still divided and likely punt on the Obama tax hike altogether, American families and small businesses can expect more economic uncertainty in the coming months:
“House Democrats are still wavering on whether they will hold a vote to preserve Bush-era tax cuts before lawmakers leave Washington later this week for the midterm elections.
“And Democrats are further divided over which tax cuts they should renew.”
“Democrats won't commit to taking any action on tax cuts. But Hoyer told reporters late Tuesday that a decision on that would be made ‘soon.’” (Chad Pergram, “Democrats Divided on Tax Breaks,” Fox News, 09/28/10)
If Democrats like Carol Shea-Porter skip town and make their re-election hopes a priority over that of American families, they will be giving voters one more reason to replace the arrogance and irresponsibility of this current Congress on Election Day.
Visit the NRCC’s Democrat Tax Tracker for more information.