A Recurring Theme: More Taxes Means Fewer Jobs
Margot Crouch /
Littered throughout the President’s proposed budget and health care plan are over $2 trillion in new taxes. In the budget we see tax hikes on businesses including the death tax; new detrimental restrictions on a tax provision called “deferral” that is vital for U.S. companies operating abroad; and potential new taxes to raise revenue for health care reform. We also see in the proposed health care plan a new Medicare tax on investment income. Heritage experts have pointed out that tax increases have a negative effect on the economy and hinder job growth. So why is the President insisting on more tax hikes for businesses when they already struggle to compete internationally with an extremely high tax rate?
Just ask Ireland how well raising taxes is working for their economy when just a few years ago its economy was increasing at one of the fastest paces in Europe. Despite its low tax rate, over the last year we have seen Ireland’s unemployment rise and incomes plunge like many countries around the world.