The actual [unemployment] numbers aren’t just worse than the rosy picture Obama painted for a world after his magical stimulus took effect. They’re worse even than the doomsday scenario he outlined if Congress didn’t pass his stimulus plan.
The unemployment figures are going to get a lot worse as the Obama administration rams through a massive raft of new taxes and tax increases on the productive sector of society. Tigerhawk quotes extensively from a write-up produced by Deloitte Tax. The Obama administration is casting a wide net to catch the little fry in the tax system. Small business is going to be squeezed as hard as big business. Of course, the only result of such brute force attempts to raise tax revenues is to reduce them. As one of Tigerhawks commenters wrote:
In the recent past I’ve been busting my chops, have made a damn good living, and have paid over $200k annually in taxes. No more. I’m not going work myself to death to fund this socialist experiment. I’ve slowed down my law practice, laid off my help, and abandoned most of my office space. I’m targeting my income to $234k, and should pay about $100k in taxes.
In sum, just in my little world Obama’s tax plan resulted in the loss of two part-time jobs (about $40k in comp each), the abandonment of 1600 square feet of office space in the middle of the worst commercial real estate market in modern history, and a REDUCTION in tax revenue of approximately $100k. Nice work, Obama.
I suspect there are several million other small business owners out there who are doing the same thing. This is where the Democrats learn that the Supply Siders were right: incentives matter.
Perhaps Obama thinks that increasing taxes on business instead of individuals will spare him any electoral consequences. A rapidly increasing unemployment rate that hits his base hard — at the top as well as the bottom — should disabuse him of that notion.