Obama Promises Tax Increases and More Failed "Stimulus"

During his speech this afternoon in Ohio, President Obama outlined his latest ideas about the economy: Tax Increases on Small Businesses

Claim: President Obama: “We are ready, this week, to give tax cuts to every American making $250,000 or less. For any income over this amount, the tax rates would go back to what they were under President Clinton. This isn't to punish folks who are better off -- it's because we can't afford the $700 billion price tag.”

Fact: Raising taxes on small businesses is a job killer, and since when is affordability a criteria of this administration? The Obama Administration has spent $5.6 trillion in 19 months and has signed a $1.2 trillion “stimulus” that failed to create jobs and the $1.2 trillion ObamaCare bill.

In addition, according to IRS data, nearly 50 percent of small businesses are subject to the top income tax rate.

Failed Stimulus Package

Claim: President Obama: “Not everything we've done over the last two years has worked as quickly as we had hoped, and I am keenly aware that not all our policies have been popular.”

Fact: The president’s primary policy for jumpstarting the economy – his $1.2 trillion stimulus – was supposed to keep unemployment under 8 percent. However, unemployment is currently at 9.6 percent and has been above 9 percent for 16 consecutive months.

Same Failed “Infrastructure” Spending

Claim: “Now, there are still thousands of miles of roads, railways, and runways left to repair and improve. And engineers, economists, governors and mayors of every political stripe believe that if we want to compete, we need to rebuild this vital infrastructure.”

Fact: In February, 2009, President Obama claimed that because of the $150 billion for infrastructure in his first stimulus, “nearly 400,000 men and women will go to work rebuilding our crumbling roads and bridges.” After 19 months the economy has shed 3.6 million jobs and the President wants $50 billion more to rehash the same failed borrow and spend policies.

Deficit Spending

Claim: President Obama: “Of course, they are right to be concerned about the long-term deficit -- if we don't get a handle on it soon, it can endanger our future. And at a time when folks are tightening their belts at home, I understand why a lot of Americans feel it's time for government to show some discipline too.”

Fact: 2011 is predicted to be the third straight year with deficits of more than $1 trillion. The highest one-year deficit before Mr. Obama became President was $458 billion. During the next ten years, deficits under this administration’s policies will total $8.5 trillion, by far the highest ten-year period in U.S. history. ###

TEXT and IMAGE CREDIT: The House Republican Conference Press Office at (202) 226-9000 or Matt Lloyd (matt.lloyd@mail.house.gov) || Mary Vought (mary.vought@mail.house.gov)