The Herald Banner, Greenville, TX

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
  • The virtues of lying

    Two computational scientists set out recently to simulate the effects of lying in a virtual human population. Their results, published in the Proceedings of the Royal Society B, show that lying is essential for the growth of a cohesive social network.

    July 31, 2014

  • Sunburn isn't the only sign of summer that can leave you itchy and blistered

    You've got a rash. You quickly rule out the usual suspects: You haven't been gardening or hiking or even picnicking, so it's probably not a plant irritant such as poison ivy or wild parsnip; likewise, it's probably not chiggers or ticks carrying Lyme disease; and you haven't been swimming in a pond, which can harbor the parasite that causes swimmer's itch.

    July 30, 2014

  • Survey results in legislation to battle sexual assault on campus

    Missouri U.S. Sen. Claire McCaskill joined a bipartisan group of senators Wednesday to announce legislation that aims to reduce the number of sexual assaults on college campuses.

    July 30, 2014

  • An alarming threat to airlines that no one's talking about

    It's been an abysmal year for the flying public. Planes have crashed in bad weather, disappeared over the Indian Ocean and tragically crossed paths with anti-aircraft missiles over Ukraine.

    July 30, 2014

  • Sharknado.jpg Sharknado 2 set to attack viewers tonight

    In the face of another "Sharknado" TV movie (the even-more-inane "Sharknado 2: The Second One," premiering Wednesday night on Syfy), there isn't much for a critic to say except to echo what the characters themselves so frequently scream when confronted by a great white shark spinning toward them in a funnel cloud:
    "LOOK OUT!!"

    July 30, 2014 1 Photo

  • 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

Featured Ads
Promotions
Poll

Does Dallas head coach Jason Garrett need for the Cowboys to make the playoffs during the 2014 football season to keep his job?

Yes
No
Who knows with Jerry Jones as owner?
     View Results
Facebook
Must Read
Photos


See more photos and purchase prints here.

AP Video
Florida Panther Rebound Upsets Ranchers Small Plane Crash in San Diego Parking Lot Busy Franco's Not Afraid of Overexposure Fighting Blocks Access to Ukraine Crash Site Dangerous Bacteria Kills One in Florida Workers Dig for Survivors After India Landslide Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN Raw: Deadly Landslide Hits Indian Village Obama Chides House GOP for Pursuing Lawsuit New Bill Aims to Curb Sexual Assault on Campus Russia Counts Cost of New US, EU Sanctions 3Doodler Bring 3-D Printing to Your Hand Six PA Cops Indicted for Robbing Drug Dealers Britain Testing Driverless Cars on Roadways
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide