View Full Version : Cantor to the rescue!

04-23-2012, 05:16 AM
Finally the GOP comes up with a jobs Bill, or do they?

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> H.R. 9, sponsored by Majority Leader Eric Cantor (R-VA), would give a massive, deficit-financed windfall to hedge fund managers, sports team owners, celebrities and other wealthy people. It would increase tax compliance burdens on small businesses and actually incentivize businesses to put off making investments and new hires until 2013 or later. (For our full analysis, click here.) The White House has issued a veto threat.

In arguing that his bill would create jobs, Cantor is now touting an analysis by Gary Robbins of Fiscal Associates. Robbins, a leading purveyor of supply-side economics for decades, appears to be the only economist that Cantor could find to help sell his bill. <u>Robbins was last heard from using recycled supply-side arguments to sing the praises of Herman Cain’s tremendously ill-conceived “9-9-9” tax plan as a paid consultant to the Cain campaign.</u>

So if anyone is likely to conclude that Cantor’s tax cut is a good way to create jobs, it’s Robbins. But even his analysis finds that Cantor’s bill is a dud.

Robbins predicts that Cantor’s tax cut — a one-year, 20 percent deduction for businesses that qualify — would add $42.6 billion to the federal budget deficit. (That’s a little less than Congress’s official estimate of $46 billion because Robbins’ revenue estimates are based on his own assumptions about economic growth.) Robbins also estimates that such a one-year tax cut would create <u>39,000 jobs.</u> <span style='font-size: 14pt'>So according to the analysis that Cantor is touting on his own website, H.R. 9 would increase the federal deficit by <u>$1.1 million for every job created.</u> </span></div></div>

Yes, I know. Some Dems voted for it as well [ most didn't] but its a Republican proposal.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">HR 9 is a giant windfall for the very wealthy, not an incentive for small business job creation

Under Rep. Cantor’s bill, in general, all businesses with fewer than 500 employees are eligible for the tax deduction on their active domestic income. The term “small business” evokes images of mom-and-pop stores or startups hoping to expand, but in fact a very wide range of enterprises owned by extremely wealthy people have fewer than 500 employees. These businesses and their owners would reap a giant windfall from the Cantor bill.
<span style="color: #3333FF">An exchange during the House committee’s consideration of the bill between Rep. Xavier Becerra (D-CA) and Thomas Barthold, who heads Congress’s nonpartisan Joint Committee on Taxation, underscored that Rep. Cantor’s tax cut could potentially provide large windfalls to the owners of a host of enterprises that are a far cry from the image Cantor tries to evoke of the struggling small-business owner. These include:

Professional sports franchises, such as the Los Angeles Dodgers, which were recently sold for $2 billion
Donald Trump’s Trump Tower Sales & Leasing
Paris Hilton Entertainment, Inc.
In addition to the owners of enterprises like these, the Cantor bill would provide a sizeable tax cut to many highly paid professionals, including lawyers, lobbyists, doctors, stockbrokers, hedge fund managers, and other financial industry professionals. These well-compensated professionals are among the least in need of a tax cut—and also unlikely to use the extra cash from a tax cut to expand operations or hire others. As one economist asked when discussing the Bush tax cuts, <span style='font-size: 17pt'>“Should we give the hedge fund managers millions of dollars of tax relief on the possibility that they might hire another office assistant?”</span> The same question should be asked of Cantor’s bill. </div></div>

Cantor says, "of course!"

Q.......... liars and hypocrites (http://www.americanprogress.org/issues/2012/04/cantor_bill.html)

Gayle in MD
04-23-2012, 07:04 AM
From your link:

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> In sum, H.R. 9 is an ineffective giveaway to the rich, poorly targeted toward small businesses, and even more poorly targeted toward job creation. It would create a new special loophole that would further complicate the tax code and arbitrarily select winners and losers. And it would worsen deficits with little or no job creation to show for it. The House should reject this approach in favor of more powerful measures to create jobs.


<span style="color: #CC0000">If we don't get rid of the Republicans in this election, this country is sunk!

G. </span>