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Saturday, October 01, 2011

Obama's Jobs Bill Aka Tax Increase Plan Doesn't Have Enough Democratic Support

By Susan Duclos

Barack Obama wants his $447 billion tax increase plan which he calls a "jobs" plan, passed by Congress and sent back to him for his signature. When he presented his plan he insisted it be "passed now", even before he submitted the actual plan to Congress. Then Obama toured the country insisting his plan be passed now, 90 times in the first few days after submitting it.

Barack Obama has made a pitch to the American public insisting that Republicans are keeping his bill from being passed, until he discovered that many Democrats won't support the plan either and Senate Democrats, who hold a majority, do not even have the votes within party to pass his pretend jobs bill.

Senate Majority Whip Dick Durbin (D-Ill.) said, at the moment, Democrats in Congress don’t have the votes to pass President Obama’s jobs bill, but Durbin added that that situation would change.

Why won't vulnerable Democratic Senators support Obama's plan?

“The oil-producing-state senators don’t like eliminating or reducing the subsidy for oil companies,” Durbin said. “There are some senators who are up for election who say ‘I’m never gonna vote for a tax increase while I’m up for election, even on the wealthiest people.’ So, we’re not gonna have 100 percent of Democratic senators. That’s why it needs to be bipartisan and I hope we can find some Republicans who will join us to make it happen.”
Now he focuses his weekly radio address to urge Congress “to get its act together” and pass his jobs bill.

There are reasons why vulnerable Senate Democrats are worried about supporting Obama's tax increase plan.

Obama’s Tax Hike Would Affect 50 Percent of All Small Business Income. According to a report issued by the Joint Committee on Taxation, the President’s proposed tax hikes will affect “50 percent of the approximately $1 trillion” in small business income reported each year.

75 Percent of Small Business Owners File Taxes as Individuals. In a statement released by the National Federation of Independent Business (NFIB) CEO Dan Danner noted that “at least 75 percent of small businesses file taxes on business income at the individual rate, and reinvest those earnings to grow the business and hire workers,” adding that, “with small businesses still struggling to recover and grow, this plan sends a bad message to job creators.”

750,000 Small Businesses Would Be Hit with President Obama’s Tax Hike. According to an Associated Press fact check, the majority of businesses that would be hit by the President’s tax hike are “small, even tiny businesses.” In fact, the Joint Committee on Taxation found that the tax hike would impact about 750,000 taxpayers who report business profits on individual income returns.

Small Businesses Account for 65 Percent of New Jobs Created in the U.S. According to the Small Business Administration, “small firms accounted for 65 percent (or 9.8 million) of the 15 million net new jobs created between 1993 and 2009.”

Backing Obama's plan would be political suicide for Democrats in the Senate, because 23 of them up for reelection in 2012 with only 10 Republican Senators up.

Obama's tax increase plan is dead on arrival, as a whole, in the Republican controlled House of Representatives as Obama knew it would be to begin with because he was told no plan raising taxes on Americans would get passed through the House.

With 90 percent of Americans believing economic conditions remain poor, Obama losing support from every demographic going into 2012, the economy stalled and perhaps heading into another recession, and unemployment still over 9 percent, Obama had to do something to distract attention from his failure to improve economic conditions when he had a Democratically controlled Senate and House, so he made a deliberate decision to re-introduce the only thing he had left.... class warfare.

If those poor saps are out there protesting Wall Street, they are not protesting Obama.

Obama has managed to divide the country more than anyone else ever has and even his own donors and supporters are telling him ENOUGH.

(Additions made to this post)