FACT: Based on a simulation of the Moody’s Analytics macroeconomic model, an across-the-board tax increase would precipitate a double-dip recession during the first half of 2011.
Employment would decline throughout 2011, bottoming out 8.6 million jobs below 2007 levels.
Unemployment would remain above 10% through late 2012.
GDP would drop to 0.90% growth in 2011.
The economy would not return to full employment until 2015.
FACT: The proposal to increase income taxes for those earning over $250,000 technically applies to 2% of taxpayers. But the facts are far more compelling. The top two income brackets:
Already contribute 50% of all tax dollars
Spend 25% of U.S. personal outlays
Generate 50% of small business income
FACT: Further, those with income under $250,000 will be impacted by the increase in dividend and capital gains taxes:
- 24% of tax filers with income less than $250,000 would be hit by increased dividend taxes and 10% by increased capital gains taxes
- Half of seniors earning under $250,000 would have to pay higher taxes from dividends, capital gains, or both.
FACT: Over the next ten years, Heritage Foundation projects a loss of $1.1 trillion to GDP if current tax rates are not extended.