Obama Tax Hikes Would Kill 710,000 Jobs?
A new report prepared by Ernst & Young further discredits Obama’s proposed tax hikes. The findings in this report show just how terrible Obama’s ‘soak-the-rich’ policy would be for the economy.
Through lower after-tax rewards to work, the higher tax rates on wages reduce work effort and labor force participation. The higher tax rates on capital gains and dividend increase the cost of equity capital, which discourages savings and reduces investment. Capital investment falls, which reduces labor productivity and means lower output and living standards in the long-run.
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