Baldwin to left of President on taxes

The National Republican Senatorial Committee today issued the following statement regarding President Obama’s call for higher taxes on job creators, a position that Madison liberal Tammy Baldwin believes doesn’t go far enough:

“If the past is any guide, Tammy Baldwin believes the President’s call for higher taxes on job creators doesn’t go far enough.  But in the wake of another weak jobs report, a massive health care bill that increases taxes on the middle class and a growing $15 trillion debt, why can’t Tammy Baldwin answer one very simple question – how does raising taxes on Wisconsin small businesses create jobs?”  — Lance Trover, NRSC Communications Director

BACKGROUND … 

FLASHBACK – President Obama: “The Last Thing You Want To Do Is Raise Taxes In The Middle Of A Recession.” (President Obama, Remarks During An Interview With NBC, Elkhart, IN, 8/5/09)

OBAMA-BALDWIN SOLUTION FOR THE 23 MILLION AMERICANS STRUGGLING TO FIND WORK IS TO RAISE TAXES ON JOB CREATORS AND SMALL BUSINESSES

• Roughly 940,000 small businesses will be hit by a big tax hike. According to the National Federation of Independent Business (NFIB), “75 percent of small businesses are organized as pass-through entities meaning they pay taxes on their business income at the individual rate.” The Joint Committee on Taxation (JCT) estimates the tax hike would hit about 940,000 small businesses (see more here from ABC News). 

• Half of all small business income would face higher taxes. According to Bloomberg News, analysis by JCT also shows President Obama’s plan for massive tax hikes “would mean higher taxes on 53 percent of business income reported on individual returns.”

• More than a quarter of American workers’ jobs are at risk. “According to U.S. Census data,” says NFIB, small businesses “employ more than 25 percent of the total workforce.” Raising taxes on small businesses threatens these jobs – the last thing we need to do in a weak economy. 

Today’s Economy Weaker Than When Obama Extended All Tax Rates

2010 Economic Growth: 3.1%

Real GDP growth over the four quarters before Dec. 2010 tax rate extension: 3.1% (“Table 1.1.1, Percent Change From Preceding Period In Real Gross Domestic Product,” Bureau Of Economic Analysis, Accessed 7/9/12) 

2012 Economic Growth: 2.0%

Real GDP growth over the previous four quarters: 2.0% (“Table 1.1.1, Percent Change From Preceding Period In Real Gross Domestic Product,” Bureau Of Economic Analysis, Accessed 7/9/12) 

In 2010, Obama Said Tax Increases ‘Would Have Been A Blow To Our Economy’

PRESIDENT OBAMA: “…tax rates for every American were poised to automatically increase on January 1st… would have been a blow to our economy just as we’re climbing out of a devastating recession.” (President Obama, Remarks At Bill Signing, 12/17/10) 

• OBAMA: “If we allow these taxes to go up, the result would be that a lot of people most likely would spend less, and that means that the economy would grow less.” (President Obama, Remarks, Kokomo, IN, 11/23/10) 

• OBAMA: “You don’t raise taxes in a recession.” (“Obama: We Must ‘Help Elkhart Reinvent Itself,’” MSNBC, 8/5/09; Video Here)

TAMMY BALDWIN’S TAX-AND-SPEND RECORD, LEFT OF PRESIDENT OBAMA

Baldwin Stood To The Left Of President Obama When She Voted Against The Tax Cut Compromise

Baldwin Voted Against 2010 Tax Cut Compromise. “Levin, D-Mich., motion to concur in the Senate amendment to the House amendment to the Senate amendment to the bill that would extend the 2001- and 2003-enacted tax cuts for all taxpayers for two years and revive the lapsed estate tax, setting the tax rate at 35 percent on estates worth more than $5 million for 2011 and 2012. It also would extend unemployment insurance benefits for 13 months and cut the employee portion of the Social Security tax by 2 percentage points.” (H.R. 4853, CQ Vote #647: Motion agreed to, thus clearing the bill for the president, 277-148: R 138-36; D 139-112, 12/17/10, Baldwin Voted Nay)

Baldwin Voted Against The 2001 Republican Tax Cuts. “Adoption of the conference report on the bill that would reduce taxes by $1.35 trillion through fiscal 2011 through income tax rate cuts, relief of the “marriage penalty,” a phaseout of the federal estate tax, doubling the child tax credit, and providing incentives for retirement savings. A new 10 percent tax rate would be created retroactive to Jan. 1, and taxpayers would get rebate checks this summer of $300 for singles and $600 for couples. The bill would double the $500-per-child tax credit by 2010 and make it refundable; raise the estate tax exemption to $1 million in 2002 and repeal the tax in 2010; increase the standard deduction for married couples to double that of singles, beginning in 2005; and increase annual limits on contributions for Individual Retirement Accounts to $5,000.” (H.R. 1836, CQ Vote #149: Adopted (thus sent to the Senate) 240-154: R 211-0; D 28-153; I 1-1, 5/26/01, Baldwin Voted Nay)

Baldwin Voted Against The 2003 Republican Tax Cuts. “Adoption of the conference report on the bill that would provide $350 billion in tax breaks over 11 years. It would provide $20 billion in state aid that consists of $10 billion for Medicaid and $10 billion to be used at states’ discretion. The agreement includes a new top tax rate of 15 percent on capital gains and dividends through 2007 (5 percent for lower-income taxpayers in 2007 and no tax in 2008). Income tax cuts enacted in 2001 and scheduled to take effect in 2006 would be accelerated. The child tax credit would increase to $1,000 through 2004. The standard deduction for married couples would be double that for a single filer through 2004. Tax breaks for businesses would include increasing the deduction that small businesses could take on investments to $100,000 through 2005.” (H.R. 2, CQ Vote #225: Adopted (thus sent to the Senate) 231-200: R 224-1; D 7-198; I 0-1, 5/23/03, Baldwin Voted Nay)