Batesville Herald Tribune, Batesville, Indiana

Community News Network

November 9, 2012

Fact check: Would tax hike on wealthy kill 700,000 jobs?

"The president wants to raise taxes on the wealthiest 2 percent of Americans. But what that does is it net loses 700,000 more American jobs that are really from people who need those jobs."

— Rep. Pete Sessions, R-Texas, on Fox News, Nov. 8

"According to Ernst & Young, raising the top rates would destroy nearly 700,000 jobs in our country."

— House Speaker John Boehner, R-Ohio, Nov. 9

- - - - -

The presidential election is over. Time to get ready for the fiscal cliff!

The fiscal cliff is the looming end-of-the-year expiration of the Bush-era tax cuts and the automatic spending cuts mandated by the Budget Control Act. The double whammy would likely sink the economy, though Democrats and Republicans disagree on the best approach for resolving the problem.

For his part, President Barack Obama has long urged retaining the Bush tax cuts for workers making less than $250,000, but letting tax rates (and some other provisions) rise for the wealthiest Americans. Republicans have opposed this, in part because they say it would harm small businesses that organize themselves so earnings or losses are passed though to the shareholders — who then are taxed at the individual tax rate.

Rep. Pete Sessions, however, went further and claimed on Thursday that hundreds of thousands of people would lose their jobs if Obama's proposed tax increase went into effect. And Boehner on Friday repeated the claim at a news conference. What's the math behind this claim?

The Facts

According to an aide, Sessions obtained his figure from a study prepared last year by two economists at Ernst & Young for the Independent Community Bankers of America, the National Federation of Independent Business, the S Corporation Association and the U.S. Chamber of Commerce — all opponents of the president's agenda.

That might be the first clue that this is potentially not a neutral document. One of the authors is also a former official in George W. Bush's Treasury Department.

Text Only
Community News Network
  • 20140729-AMX-GIVHAN292.jpg Spanx stretches into new territory with jeans, but promised magic is elusive

    The Spanx empire of stomach-flattening, thigh-slimming, jiggle-reducing foundation garments has expanded to include what the brand promises is the mother of all body-shaping miracles: Spanx jeans.

    July 29, 2014 1 Photo

  • Medical marijuana opponents' most powerful argument is at odds with a mountain of research

    Opponents of marijuana legalization are rapidly losing the battle for hearts and minds. Simply put, the public understands that however you measure the consequences of marijuana use, the drug is significantly less harmful to users and society than tobacco or alcohol.

    July 29, 2014

  • linda-ronstadt.jpg Obama had crush on First Lady of Rock

    Linda Ronstadt remained composed as she walked up to claim her National Medal of Arts at a White House ceremony Monday afternoon.

    July 29, 2014 1 Photo

  • Can black women have it all?

    In a powerful new essay for the National Journal, my friend Michel Martin makes a compelling case for why we need to continue the having-it-all conversation.

    July 29, 2014

  • Dangerous Darkies Logo.png Redskins not the only nickname to cause a stir

    Daniel Snyder has come under fire for refusing to change the mascot of his NFL team, the Washington Redskins. The Redskins, however, are far from being the only controversial mascot in sports history.  Here is a sampling of athletic teams from all areas of the sports world that were outside the norm.

    July 28, 2014 3 Photos

  • 'Rebel' mascot rising from the dead

    Students and alumni from a Richmond, Va.-area high school are seeking to revive the school's historic mascot, a Confederate soldier known as the "Rebel Man," spurring debate about the appropriateness of public school connections to the Civil War and its icons.

    July 28, 2014

  • Fast food comes to standstill in China

    The shortage of meat is the result of China's latest food scandal, in which a Shanghai supplier allegedly tackled the problem of expired meat by putting it in new packaging and shipping it to fast-food restaurants around the country

    July 28, 2014

  • wd saturday tobias .jpg Stranger’s generosity stuns Ohio veteran

    Vietnam War veteran David A. Tobias was overwhelmed recently when a fellow customer at an OfficeMax store near Ashtabula, Ohio paid for a computer he was purchasing.

    July 28, 2014 1 Photo

  • Screen Shot 2014-07-28 at 1.33.11 PM.png VIDEO: High-dive accident caught on tape

    A woman at a water park in Idaho leaped off a 22-foot high dive platform, then tried to pull herself back up with frightening results. Fortunately, she escaped with only a cut to her finger.

    July 28, 2014 1 Photo

  • CATS-DOGS281.jpg Where cats are more popular than dogs in the U.S.-and all over the world

    We all know there are only two types of people in the world: cat people and dog people. But data from market research firm Euromonitor suggest that these differences extend beyond individual preferences and to the realm of geopolitics: it turns out there are cat countries and dog countries, too.

    July 28, 2014 1 Photo