September 24, 2012
When Taxmageddon hits on January 1, 2013, the financial devastation will be immense. Heritage Foundation experts strongly oppose the liberal plan to allow such massive tax hikes during this tough economy.
Taxmageddon will affect all Americans. Here are five consequences we can expect on January 1:
- $494 billion in tax increases resulting from expiring tax cuts and the introduction of new Obamacare taxes;
- $3,800 in new taxes on the average American household in 2013 alone;
- A huge hit to low-income Americans as Taxmageddon falls primarily on middle- and low-income Americans;
- Even slower job creation, resulting from the new taxes on work and investment, will prevent many unemployed Americans from finding new work; and
- Uncertainty that will harm and slow down families, businesses, entrepreneurs and investors in making critical economic decisions.
Heritage economist Curtis Dubay elaborates on why this tax hike is a bad idea:
The August jobs report is the latest in a series of gloomy jobs reports. Well under projections, the economy added a paltry 96,000 new jobs in August, and July and June employment was revised downward. Most alarming were the nearly 400,000 workers who left the workforce in August, bringing the labor force participation rate to its lowest point in 30 years. GDP growth is also showing a trend of deceleration…
The mounting evidence shows that the economy cannot withstand a major tax increase in a few months. Rather than continue to subject the economy to Taxmageddon’s crippling uncertainty, Congress should take that burden off of America’s job creators now. Until it does so, we can expect further troubling economic data, including weak job numbers.
To learn more about Taxmageddon and keep up to date with the latest reports and research, visit Heritage.org.
Do you think a one-year $494 billion tax increase is the best way to solve our economic problems?