Why Does President Obama Ignore His Own People and Advisers On Raising Taxes?
Rodney 2012/07/20 20:18:18
A multitude of economists, the CBO and former advisers all say raising taxes on those earning $250k or more will create more havoc then the 8 days worth of revenue is worth. Yet, the President persists and has managed to find one adviser to agree. Senior Obama economic policy aide Jason Furman on the official WhiteHouse.gov blog has fired back in a series of arguments. What am I speaking of?
Here it is;
Here it is;
White House goes to war with Ernst and Young
Barack Obama says that extending breaks for America’s middle-class and hiking taxes on the rich will help the country’s economy. Accounting firm Ernst and Young argue otherwise, though, and a war is now brewing between the White House and its foes.
Despite pleas from US President Obama that his signature tax proposal will answer America’s financial woes, a new report out of the offices of Ernst and Young alleges that, if followed through as planned, "major flaws, errors and misleading statements” in the White House’s agenda could cost the country as many as 710,000 jobs.
Following the release of the accountants’ analysis, the official WhiteHouse.gov blog has fired back in a series of arguments penned by senior Obama economic policy aide Jason Furman.
That isn’t to say that the battle is ending there, though.
Furman writes that Ernst and Young’s argument comes by way of pro-businesses groups historically hostile towards the commander-in-chief and mischaracterizes much of what the president actually has planned. He also argues that the Ernst and Young report ignores not just the other points supported by the president that are intended to only aid in America’s economic growth, but counter opinions by other experts.
“Even setting aside the fact that the study ignores the effects of the president’s tax proposals on short-term growth and long-term deficit reduction, the conclusions are still dramatically out-of-line with estimates by other analysts, including not only the Congressional Budget Office but also the Bush Administration Treasury Department,” Furman writes. “The authors’ unrealistic assumptions lead them to find a larger increase in long-run output and about twice as large an effect on employment over the long-run as the Bush Administration Treasury Department found when conducting a similar analysis of extending the high-income tax cuts.”
New Ernst and Young report: proposed tax increases will cost 710,000 jobs
Allowing tax rates for the country’s highest earners to rise, an idea endorsed by top Democrats, would have a dire effect on the economic recovery, according to a new report prepared for business groups that was released Tuesday.
The study from Ernst & Young found that letting tax rates for the wealthiest Americans lapse would sap $200 billion and some 700,000 jobs out of the economy, reduce wages by 1.8 percent and lead to a decrease in investment.
“These results may suggest to policy makers that allowing the top tax rates to increase comes with economic consequences,” Ernst & Young’s Robert Caroll and Gerald Prante wrote in the report for the Independent Community Bankers of America, the National Federation of Independent Business, the S Corporation Association and the U.S. Chamber of Commerce.
“Long-run output can be expected to fall, and, depending on the use of the revenues, living standards, as reflected by workers‟ real after-tax wages, may also be lower.”
Christina Romer Knows Tax Hikes Will Kill the Recovery
A powerful analysis by President Barack Obama’s first Chair of his Council of Economic Advisers (CEA) indicates the President’s proposed tax increases would kill the economic recovery and throw nearly 1 million Americans out of work. Those are the extraordinary implications of academic research by Christina D. Romer, who chaired the CEA from January 28, 2009 – September 3, 2010. In a paper entitled: “The Macrcoeconomic Effects of Tax Changes” published by the prestigious American Economic Review in June 2010 (during her tenure at the White House), she stated: “In short, tax increases appear to have a very large, sustained, and highly significant negative impact on output.”
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