A new study by Ernst & Young released today finds that the President's plan to raise taxes on small business owners and families earning more than $250,000 will lower the wages of American workers by nearly two percent, shrink the U.S. economy and cost 710,000 jobs -- 57,000 of them in Texas.
"In the Obama recovery, the weakest recovery since World War II, small businesses along Main Street are struggling and so are a lot of hardworking taxpayers. This study proves that while the President is shooting at the so-called wealthy, his tax hikes will actually hit hardest our small businesses and middle-class workers who'll see their paychecks shrink," said Texas Congressman Kevin Brady, a senior member of the House Ways & Means Committee and the top Republican on the Joint Economic Committee. "America can't afford to lose another 700,000 jobs. Texas can't afford to send 57,000 more workers to the unemployment line. And workers can't afford to see their paychecks get even smaller because under President Obama everything from food to gas to college costs more."
The study "The Macro-Economic Impact of Increasing Tax Rates on High-Income Taxpayers" was conducted by Dr. Robert Carroll and Gerald Prante of Ernst & Young and released by the National Federation of Independent Business. It shows that 900,000 business owners would be hit by the higher tax rates, that the U.S. economy would shrink by 1.3%, and investment in America would fall significantly -- 2.4% - as a result of President Obama's tax hikes.
Brady also announced that House Republicans will take up legislation later this month to stop the Obama $4.3 trillion tax hike, lay out principles for a fairer, simpler tax code and guarantee an up-or-down vote by Congress on tax reform next year. The measure will also prevent the Death Tax from springing back to life and stop the alternative minimum tax from capturing 31 million middle class families.