How much do high-earning families need to pay before the Obama administration can finally say they are finally contributing their “fair share?” If such a number even exists, we have apparently not found it yet, if the latest proposed tax hike is any indication.

The Heritage Foundation’s Curtis Dubay explains the consequences of the President’s latest tax proposal:

Taxpayers earning more than $1 million per year are investors and businesses that are directly responsible for creating jobs. Investors provide the capital to existing businesses and startups so they can expand and add new workers. Raising their taxes would deprive them of resources they could invest in promising businesses that are looking to add employees. Raising their tax rate would deter them from taking the risk to invest.

In the long term, lower-income families will feel the sting of the tax hike as well. In another report, Dubay says job-creators immediately affected by the tax will refuse to hire additional workers simply because it won’t make any economic sense to do so:

Many businesses pay their taxes through their owners’ individual income tax returns. The President’s tax hikes would be a direct tax on these important employers. A recent study from President Obama’s own Treasury Department shows that 90 percent of businesses that pay taxes through the individual income tax code and employ workers would pay the higher taxes under the President’s plan. Higher taxes would reduce these businesses’ incentives to hire new workers and their ability to retain or increase compensation for their existing employees.

Ultimately, the U.S. government’s self-destructive policies will harm lower-income families far more than the more successful families and companies who can shoulder the burden at the cost of a reduced work force.

“The millionaire tax would end up costing the U.S. economy more jobs than the President’s jobs plan it is supposed to pay for would ever create. It would ruin American competitiveness among other developed countries,” Dubay says.

If the Obama administration truly values job-creation, it should focus on the real root of the deficit: runaway spending brought on by years of government expansion and poor decision-making.

What do you think? How can the President’s jobs plan create employment opportunities when it makes hiring new employees more costly?

Comments (52)

Dave Gell - October 11, 2011

How can the President’s jobs plan create employment opportunities when it makes hiring new employees more costly?

Answer: It can’t.

Michael - October 11, 2011

The Millionaire tax just doesn’t make any Cents!

Jim - October 11, 2011

Spot-on! I can’t say I’m surprised that this administration doesn’t get this.

Truman Trekell - October 11, 2011

The way to stop this deceptive spending is to vote Obama and his cronies out of office and vote in a truly conservative candidate like Herman Cain. Also encourage our representatives to vote down any spending bill until we can get Obama out of office.

Tim S. - October 11, 2011

If this works as well as his other programs, we’re doomed.

Charles Nicholson - October 11, 2011

Ther’s no way higher taxes will lead to more jobs!

Jim Griggs - October 11, 2011

Our current administration is run by people who have never made a payroll or depended upon themselves for anything. It’s everyone’s fault but theirs. Someone else has to carry the burden.

Randy Barnes - October 11, 2011

I think everybody should pay their fair share in taxes. It seems to me the best way to do that is a flat tax on income no loop holes.

Yes we also need to cut government waste. It is ridiculous the things our tax dollars are spent on by both parties.

Now don’t try to sell me on either party doing what is right for the majority of the people. They both are so far out of touch with the people it is just sickening!
They seem to think we are all either extreme conservatives or extreme liberals. Come on lets get real! Isn’t it logical that most people are in the middle somewhere and that it really depends on the specific issues.
Most of the politicians act like a bunch of grade school children just blindly trying to get their own way, with no regards to what is right!
The ones that are trying to do what is best for the majority of the people can’t seem to get anywhere because the others have to much power.
Lets get rid of them all, find a third party that represents the people not special interest or the wealthy, because the two we have now seem to be lost forever!.

hank - October 11, 2011

While your stats on the high income earners paying most of the personal income tax are correct, what about those who have great tax shelters and, along with some big corporations, pay little or nothing? And certainly NOT their “fair share”. Even tho they may be relatively few, it infuriates the average middle-class person who is paying 15-28%. And rightly so. So please don’t dismiss the protests against unfairness as tho it is meaningless. Dismissing it is politically inept and makes R’s look like the stereotypical “fat cats” that Obama and the SEIU, et al, promote.

Robert E. Solum - October 11, 2011

This information needs to be put on the radio, on TV and in the newspapers over and over and over until everyone is sick of it that is the only way most people will hear of it.

Ken Hansen - October 11, 2011

Every dollar sucked into the Gov’t coffers is another dollar that can’t be used to create private sector jobs. The Gov’t can’t create private sector jobs, it can only encourage their creation – but not by insisting on a bigger slice of every private sector success.

John R. Whalen - October 11, 2011

I’m a contractor involved with the Federal Gov’t in the bulk of my work. The arrogance and Dictatoral control, claiming that all means and methods are now under theyre purvey for “safety”, has become widespread and incessant under this administration. They feel that there are no limits to their power. Usually, they creat un-safe conditions as a result.

Ted - October 11, 2011

No the president is an economic nitwit at best, he is cluless. Sound bites for reelection,that’s aboutit!

David Haskins - October 11, 2011

The road to serfdom is paved with silent millions, who watch the definition of “millionaire” shrink in proportion to the perceived “need”. Soon, all their private property belongs to another, and men who were not created to, have saddles on their backs & bits in their mouths and look to the benevolent hand of government to feed them.

Dallas Dagenais - October 11, 2011

The President is doing nothing for the country with his prosposal and his rhetoric but encouraging class warfare to increase his political position and chance at reelection. He is splitting this country to the detriment of us all.

JPR11 - October 11, 2011

Obama has been successful in dodging his massive Spending issue with higher taxation. When will all focus on his massive spending increase?

Silver Haired Saint - October 11, 2011

All this will do is steal money from those who earned it. No jobs will be created other than possibly a few new tax collectors. 13 months and then 2 months!!!

Bill Dyro - October 11, 2011

I’m not a millionare, but I hope to be one some day. But if Obama gets his way, maybe I’ll be better off broke. If he raises the taxes for the people and buisnesses that create jobs, the only trickle down left will be the trickle down tightening of everyones purse strings and the economy will come to a halt.

Dewey Switzer - October 11, 2011

The President ‘s jobs is not a jobs Bill at all. Just a political ploy to attack Congress!
If He really cared about jobs he would permit Deep water drilling in the Gulf and approve the Canadian pipeline

Pat - October 11, 2011

The president knows his plan won’t create jobs. His desire is not to help the American people, but rather to forward the liberal (aka communist) agenda of destroying the American economy and creating massive dependence on government, so that those corrupt power-mongers get more and more power.

john uhrhammer - October 11, 2011

I’m an old codger who remembers the “CCC”, the “WPA” and when we got what we earned and earned what we got! I volunteer at a benevolence program and see so many people getting “free” stuff (food, utilities, auto gas) that there is little incentive to get a job. We as a country cannot afford to get a return on our investment. With unions and bleeding heart organizations raising such ruckus, we no longer have the moral courage to fix our own self created mess. Going “progressive” ALWAYS leads to national poverty and chaos before collapse!

jack - October 12, 2011

I don’t think President Obama wants the people to have jobs, but he wants a socialist state where the government supplies everything to the people.

lloyd shenefield - October 12, 2011

If this idiotic teaching in our schools is ,not stopped our grandchildren will no longer have a country where in dividual acheivment is praised and rewarded .

LDT - October 12, 2011

All needs to happen for jobs to be created in this country is for the Gov. to get their hands out of the pockets of business and stop treating everyone like we are the big bad wolf and have to be regulated by them because they know best, when all you have to do is look at every thing they are involved in to see they sure don’t know how to do anything right, (do away with the Fed. Gov. completely.) Let the states take care of themselves, and we can move to the places where we feel best suits our convictions of what is right. They can take 100 percent of the millionaires money and it won’t be enough without stopping the reckless spending and plundering that the Fed. Gov. is doing. Take the binders and restrictions off industry….get the mafia (unions) out of bed with the Gov. and there will be plenty of jobs for every one that wants to work….stop all the handouts and the bums will either go to work or leave….money goes where it is treated best, and without the rich creating jobs, then we all as average people suffer….OSHA and the EPA along with the Unions is the reason it is just to expensive for companys to compete in the USA any more. Do away with them and there won’t be a job shortage problem in a few years.

george f slater - October 12, 2011

Many bold assertions, not many hard facts. If you want to influence opinions you will have to do better than this.

Dennis - October 12, 2011

I am a business owner and employer. I, as well as others are highly concerned about Obama’s plans, and are not willing to invest in additional employees and growth risks with this administration in office. We pay hundreds of thousands in federal income tax already, and take no handouts from the government. Frankly, I’m so frustrated with the tax system, and do not feel motivated to participate in working so hard to pay the way for the 47% not paying any federal tax anymore. If there is no major turnover (i.e.: One term for Obama) in Washington, we are going to continue to cut back, and pay less.

Nhills3 - October 12, 2011

If people really want to have an effect on the businesses they consider greedy, they need to stop purchasing their goods or using their services rather than asking the government to punish them with taxes.

J. Hopkins - October 12, 2011

Any money funneled through government will never incur a return; its effective use to support government’s constitutional duties is directly proportional to the efficiency of the bureaucracy and inversely proportional to the level of corruption therein. Using jobs alone as an indicator of success is not sound, since each job that the government creates with our tax dollars is a net long term loss for the civilian sector, representative of the opportunity cost of those dollars. The job of government is to “promote the general welfare”, not “provide it”.

Victor Samuelson - October 12, 2011

Agree with your observations about taxes, small business owners and job creation. Believe it highly unlikely that at least one of the President’s close advisors(e.g., Paul Volker) is not fully aware of the distribution of taxes among earners, the realities of small business owners’ compensation practices, and the contribution of small business to new job creation in this country. Think it perfectly reasonable to conclude that the continuing attacks by this Administration on the wealthy, our small businesses, large businesses, and our free enterprise system are with full knowledge of the potential effects and with full intention to bring our free market system, our businesses, and our entire society down. Please keep up your good work to educate, influence, and to defend our freedoms, limited government, and other conservative principles of our founding fathers.

Bill Walsh - October 12, 2011

Everyone should know that the Obama administration is NOT about jobs or fair share taxes. They believe in income and wealth redistribution through tax policies and health care plans and any other means. Certainly NOT the principles that made America great!
Even his own majority Senate would not pass his most recent jobs plan…nuff said!

Joseph McKennan - October 12, 2011

Raising taxes on the high earning families fits perfectly with the Socialist agenda. What confuses me is where is the government going to get money to feed and clothe the parasites if people just lose interest in making a living.
If I am faced with the possibility of having all my earnings taken away from me by a gluttonous government–why should I bother making money? I want the government to take care of me too so I GIVE UP.

Karon - October 12, 2011

It seems that most of the people protesting against Wall Street don’t understand this simple principle. Americans need to wake up and realize that every job Obama wants to create in the public sector (govt job) with his “jobs” plan, is a job that requires taxing We the People.

More Government NO HOPE, Less government, more hope! Vote Obama OUT! Send Nanci Pelosi and Harry Reid with him.

On the subject of Nanci Pelosi – what a fraud! Millionaires running our government telling the rest of us how to live our lives. It’s obvious that Nanci Pelosi has figured out the whole “loop-hole” thing. A millionaire, wife of a millionaire, taking a payroll check and a retirement plan from the tax payers. Galavanting around on Government jets as if they are her own. Spending our tax dollars on private/personal travel expenses. Only the best for NP! It’s absurd what these people have done to our country. The GREED is in this administration.

Stephanie Grable - October 12, 2011

It is not the job of government to create jobs. It is their job to ensure that businesses can function in an open and just society. “Washington” needs to get out of the way and allow the free market to do what it does best. Taxing these people and businesses more is the best way to shut down the system.

Dick - October 12, 2011

With so many of our citizens on the Federal Teat, I don’t see how anything can be reversed. Even with a complete housecleaning in 2012, we have to undo all those little regulations prepared by Federal bureaucracies and that stifle, smother and discourage new job-making.
Cloward and Piven and Alinsky may win the day, but, oh what pain and misery may yet befall us all.

Scott Murray - October 12, 2011

All politicians view their primary job as growing the government and the services it provides without regard for the long term effect. We need to cut off the supply of that growth, which is tax dollars. Until we do, both parties will continue to spend, spend, spend.

John Huston - October 12, 2011

Obama’s jobs plan is just another stimulus plan. A stimulus plan is similar to a chain letter, some people will receive some help for a short time and then the effect goes away.

Obama’s jobs plan is just a campaign trick. He does not expect it to pass. He wants something to blame on Republicans to take the spot light off himself.

Michael S Sadich - October 12, 2011

50% OF America does NOT pay income tax now —Why do we keep insisting on Taxing the rich –they already pay 70% of taxes payed right now. The President is a Socialist playing the Class Envy Game. THis is NOT the AMERICAN WAY. The American Way –is work hard and EARN IT –not take it from someone else. How about we go back to that & not CLASS ENVY !!!!!!

Donald DaCosta - October 12, 2011

What do I think? This is such a no brainer and it boggles the mind that all these pencil necked geeks out screaming bloody murder advocating the death of Capitalism are actively participating in perpetuating their own misery. What is so difficult to understand? Take more money away from those who provide the bulk of the economic activity and jobs and there will be less of both.

This ignorance is not a new phenomenon. The Democrat party has nurtured it to expand their voting block and they’re currently attempting to capitalize on their success. Ignorance is their stock in trade. Ignorant people are malleable sheep, perpetual victims of some nebulous Wall Street, probably Jewish moguls pulling the strings on their Republican puppets in Washington. It’s like a grade B movie on steroids. The quintessential hero is Obama struggling to wrench the reins of power from their evil hands so he can unleash the power and glory of the Progressive agenda and create a utopia for all. A chicken in every pot, the redistribution of all that wealth concentrated in the hands of the evil few. Yes sir. The free markets unencumbered with Government oversight, that would be the free markets that created the most prosperous, most innovative, most powerful society the world has ever seen, does not work. It needs transformation, reformation, indoctrination and, above all, needs to be completely controlled from Washington DC.

Believe it, elect Obama in 2012 and we can all commiserate while standing in the soup lines about how stupid and evil Ronald Reagan and the Bushes were to get us into this mess. We need more Democrats and more bailouts.

Sorry! I got a bit carried away but this is the biggest problem in America, the one that got us Obama as POTUS………IGNORANCE.

Rodney Galles - October 12, 2011

The only millionaires tax i would support would be to tax 90% of the principle of all monies that elected representatives have accumulated since they were first elected. The only exception I would allow would be for those individuals who could show legitimate, non favorable investments in U.S. businesses that had not received a penny in subsidies or special treatment in their taxes during the time these individuals have served. When Nancy Pelosi and Chuck Schumer or Chris Dodd can prove that their monies are clear of any favoritism or other political influence, in a court of law, then they can be relieved of the confiscation of their ill-gotten gains.

Del - October 12, 2011

Just another wealth distribution scheme. The fact that this even has traction can be traced back to our education system and the fact that we don’t teach the positive economic benefits of the capitalist foundation this country was founded and built on. We have to take our schools back which means getting the Federal government out of the education business.

Claude Cox - October 12, 2011

The present Administration is intent upon achieving the end of private wealth in the Nation. Wealth is any significant amount of assets above what is needed to live or above what some Government official says is ‘enough’.

They believe most Americans are too stupid to make their own decisions about money anyway. The Government will relieve them of the responsibility of making any such decisions by seeing to it that there is just not much wealth left for the individual-the Government taking most of it for the good of the ‘masses’.

Norman - October 12, 2011

Risk and Reward…why take the risk with investing (and hiring) in a low return environment when there is no reward?

Go ask the now defunct Soviet Union powers that (used) to be….

Tom - October 13, 2011

Each time I see a new punitive tax bill from this bunch, the more I believe that they ARE out to destroy small business in America. And after Solyndra and now SunPower, it is becoming more obvious this is the most corrupt administration in history, making President Nixon look like a choir boy. They are lining their own pockets and the pockets of their buddies and contributors with taxpayer money. If we don’t get this bunch, including Harry and his ilk, out of office and control, this country is doomed to the backwaters of history. A sad tale that will harm Liberty and economic freedom for generations. It is also time for a good spring cleaning of the entrenched bureaucracy, of which I was one, making odious Federal Regulations under the guise of crisis management. If people only understood how government creep works. Untouchable bureaucrats making regulations, see EPA, under the umbrella of the Acts that created their Agencies and behind the scenes. This government is dysfunctional through and through. Sickening.

Charles Morris - October 13, 2011

The fact that Obama’s “plan” is even considered a solution to our current woes is an indication as to how abyssmal the current knowledge of the people regarding economics is. Mises, Friedman, Hayek are unknown to the masses, a triumph of our liberal educational system, keep em uninformed, ignorant of the principles of our great constitutional government. Conservatives have loads of work to do, as we did not engage in the battle whilst the enemies of freedom attacked thru domination of the education of our young at all levels.

Ronald Lundgren - October 13, 2011

My only comment is to to tell the government to get the hell out of the way and let the free market do what it knows how to do.

Don Casler - October 13, 2011

The president is a committed Keynesian thinker and social engineer who sincerely believes he will be seen by his fawning supporters as a man of action just as many bygone progressives felt. Say what you will about Herman Caine at least he is proposing a plan to make sure every American citizen has skin in the game and is paying some amount of federal income tax. The fatal flaw in the progressive income tax will always place the disproportionate and greatest burden on the most successful in our society. Economic downturns invariably produce a popular hue and cry for action, thus elevating social engineers to positions of power. It’s in these times that conservatives should articulate a demonstrably powerful narrative about individual self-interest. Show the power in every citizen to achieve his or her desires in America through hard work on their own behalf. Point out the power of opportunity during times of soft prices to acquire what’s needed for their own businesses but most of all, change the popular mindset showing that the individual determines his outcomes in life and not the state.

Joan Jackson - October 13, 2011

Consumer and the economy
The consumer pays all the cost for everything. All of the taxes and cost of government services are included in the price of commodities and the consumer pays all of the cost when purchasing commodities. If the price of commodities were reduced, people could buy more with limited disposable income, more commodities would be demanded, more jobs would be created to fill the demand, and the entire economy would expand.

The federal government should consider how its actions would raise or lower the cost of commodities. Raising taxes on anyone would raise the cost of commodities. Regulations raise the cost of commodities. Additional services raise the cost of commodities. The cost of energy affects the cost of commodities. The government could improve the economy by reducing services, reducing regulations, promoting the development and production of gas and oil, and taking actions that reduce the cost of commodities.
Restructure taxes to take hidden tax cost out of the front end of commodities and add a sales tax. This would make taxes transparent, capture revenue from the underground economy and capture revenue from foreign products. Herman Cane has it right with his proposed 999 tax plan.

Patricia - October 13, 2011

Fact is, it can’t. Cut run-away gov’t spending and lower taxes for everyone. A simpler tax code for all. Get rid of all the job-crushing regulations. Encourage ALL types of energy production. REPEAL Obamacare. Then, the economy will begin to turn around. If you want all these things, elect Mitt Romney.

Robert J Davis - October 14, 2011

I do not agree. In 1956 GDP was over 7%, Unemployment under 4%, inflation about 2% and the top tax rate was 91%. The top tax rate put a damper on unrestrained greed permitting profits to go into building businesses, not building obscene wealth.

Ron Dvorak - October 15, 2011

Virtually 100% of the emails to the right are exactly how I see things and are entirely correct. What I would like to know is what is the “community organizer’s” true motives… where does he see his policies leading us. Unless he and his top cronies (Reid, Pelosi, Schumer, etc) have all gone mad, the logical answer is it’s all about politics and they could not care less about the effect on the American people or this country’s survivability. Yet I’m at a complete loss that in spite of his politics, some 48% still support him!! Can someone explain this utter madness. On the positive side, I believe FOX reported that approx. 3/4 of us “feel this admin. is leading us done the wrong path”. Thank God we only have approx. 12 more months to go…. and here I thought Carter was the most pathetic president in our history. Thanks

Grant Hopkins - October 17, 2011

Let’s get back to the rule of LAW! Oh what a new concept! Obama and his cronies will never understand the words “No More”.

Dennis M. Foster - October 22, 2011

More socialism. Congress needs to put a stop to all the agencies that are making laws and regulations and start cutting the costs of those agencies. I would start with the EPA, then the Department of Energy and work my way through the rest of them. I would immediately tell them all that any item they want to make into law will be brougth before Congress for review and discussing, including public hearings. The massive amount of laws that have been enacted through the years are chocking this country along with a government that is sinking under its own weight. The money that could be saved would more than pay for S.S. and Medicare, with funds left over. The president keeps spending money on his trips and wanting a high speed rail system that would be available to 80% of citizens; because Japan and France have them?!!! Eighty percent of our citizens wouldn’t use the rail system if it was available and firstly, it would never make a dime. The party of the “left” has a bad bad habit; it’s called tax and spend. Why should the government get more in taxes when they have been so careless with what they have been getting?

Leave a Reply

Your email address will not be published. Required fields are marked *