The National Republican Senatorial Committee today issued the following statement regarding President Obama’s call for higher taxes on job creators, a position that has been echoed by his former DNC Chairman Tim Kaine:

“President Obama and Tim Kaine have long supported higher taxes, bigger government and increased spending, so their support for yet another massive tax hike on Virginia small businesses comes as little surprise.  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 Tim Kaine answer one very simple question – how does raising taxes on Virginia small businesses create jobs?”  — Brian Walsh, 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-KAINE 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)

TIM KAINE’S TAX-AND-SPEND RECORD, JUST LIKE OBAMA’S

2009: “‘Kaine Will Definitely Not Be Remembered For His Legislative Successes Because They’re Few And Far Between,’ Said Larry J. Sabato, A University Of Virginia Political Scientist.” (Ian Urbina, “Virginia Rejects Bill On Private Gun Sales,” The New York Times, 2/5/09)

“Gov. Tim Kaine Wants [To] Eliminate Virginia’s $950 Million Annual Car Tax Reimbursement Payment And Exchange The Tax On Personal Vehicles For A 1 Percent Income Tax Surcharge.” (Sarah Krouse, “Gov. Kaine Calls For End Of Car Tax, New Income Tax Surcharge,” Washington Business Journal, 12/18/09)

• The Tax Increase Under Kaine’s Budget Proposal Would Be A $2 Billion-A-Year Income Tax Increase. “Virginia’s hated local car tax would be replaced with a $2 billion-a-year income tax increase under the new budget Gov. Timothy M. Kaine presented Friday.” (Bob Lewis and Dena Potter, “Va. Gov: End Car Tax, Raise Income Tax 1 Percent,” The Associated Press, 12/18/09)

“His [Kaine’s] Proposal Would Allow Local Governments To Phase Out The Car Tax And Phase In A 1 Percent Income Tax Increase Over Two Years.” (Anita Kumar and Rosalind s. Helderman, “Virginia Governor Proposes An Income Tax Increase,” The Washington Post, 12/19/09)

• The Income Tax Change Would Have Resulted In A Tax Rate Hike “For Those Earning More Than $17,000, 60 Percent Of Taxpayers.” “The increase would mean a hike in the income tax rate from 5.75 percent to 6.75 percent for those earning more than $17,000, 60 percent of taxpayers.” (Anita Kumar and Rosalind S. Helderman, “Virginia Governor Proposes An Income Tax Increase,” The Washington Post, 12/19/09)