Wednesday, September 8, 2010

No 'summer of recovery' Joe as USA faces epic fall failure

From NiceDeb, American summer of recovery? ... ummm... not so much

MORE stimulus for 'infrastructure' planned... discussed at Breitbart. Umm... so more roads fixes the job shortage, huh?

From AT, EPIC FALL FAILURE begins (for ... Dems at the polls at least Nov 2nd!):

Sep 7th from Heritage:

"But spending is just one side of President Obama’s economic prescription for the country. Not only is he advocating another $50 billion in spending on top of the $814 billion in economic stimulus spending he has wasted so far, he is also advocating for a $921 billion tax hike set to take effect this January 1, 2011.

The administration wants us to believe that this massive tax hike will have no effect on our economic recovery. But that is just not so.

Raising taxes on work and investment would mean less work and less investment and can be regarded only as an overtly hostile anti-jobs policy.

That is just one of the myths exposed by Heritage analyst JD Fosters’ new paper: Obama Tax Hikes Defended by Myths and Straw Man Arguments.

Foster also details:

•Myth: Small businesses would be only marginally impacted by higher taxes rates.

Fact: Successful, growing, hiring small businesses are especially targeted by higher tax rates. Many Americans report business income from hobbies, sideline businesses, etc., thus inflating the number of so-called “small businesses.” True small businesses have employees and machinery, offer goods and services widely, and are far fewer in number. Yet they earn most of the small business income that would be subject to the higher rates.

•Myth: Tax rates matter little in the long run.

Fact: Tax rates have their most powerful effects on long-run growth and wages. The effects of tax changes take time to manifest fully because major business investments typically require extended evaluation, planning, and implementation. Similarly, while workers respond quickly to changes in tax rates, a full response takes time as they adjust their spending and budgets accordingly.

•Myth: The country cannot afford not to raise taxes.

Fact: The problem is spending, not revenues. The country cannot afford to let current spending levels continue. Taxes as a share of the economy will soon exceed the historical average. The current and projected unsustainable deficits are due to Obama’s spending surge, not a shortage of revenue."

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