Democrats’ War on American Jobs

A Special Report by the U.S. House Republican Conference

December 2007

Economic Insecurity

American working families are “stressed-out.”

Some key sources of anxiety: Rising health care costs Rising college costs Rising energy costs Doubts about retirement security Subprime crisis in housing Record-high taxes (local, state, federal combined)

(Source: Presentation Testing Research, Fall 2007)

Economic Anxiety is Growing

Zogby poll: Jobs, economy and health care were top concerns of 38.2% of likely voters in October 2007 (compared to 25.7% for economy and health care in June).

“The change appears to reflect rising economic anxiety and a sense that America’s commitment in Iraq will begin winding down next year.”

“[T]here are growing signs people again are worrying more about the economy.”

(Source: Weisman, Robert; “It’s the Economy,” Boston Globe, October 21, 2007)

A Vulnerable Economy “The U.S. economy is being buffeted by a

number of economic forces that are adversely impacting economic growth. . .[Examples] include energy prices and real estate prices.”

(U.S. Joint Economic Committee minority staff, October 2007)

“A massive tax increase ‘would be a drag on the economy’ and, as a result, ‘would probably not be advisable.’”

(Federal Reserve Board Chairman Ben Bernanke, Wall Street Journal,

November 8, 2007)

Dangerously High Taxes

The state and local tax burden on American families and small businesses is now at its highest level in a quarter-century.

(Tax Foundation study, April 4, 2007)

JOB-KILLING TAX HIKES

During the first 11 months of the 110th Congress, the Democrat-controlled House passed legislation collectively raising taxes by more than $330 billion over 10 years.

These tax increases threaten more than 16 million American jobs.

The Farm Bill Tax Hike Threatens 5.1 Million American Jobs Passed July 25, 2007 Raises taxes on “insourcing” companies

operating inside United States. Jobs pay average of $63,428 per U.S.

worker – 32% higher than U.S. average. Among affected employers: Honda North

America, Food Lion, Nestle, Bayer, BASF, T-Mobile.

(Source: Organization for International Investment)

Impact of Farm Bill Tax Hike on Selected States

Source: Organization for International Investment

STATE POTENTIAL JOB LOSS

California 542,600

Florida 226,000

Illinois 226,400

Michigan 202,300

New Jersey 214,000

New York 378,000

Ohio 213,800

Pennsylvania 233,200

Virginia 138,800

The “Energy” Plan Tax Hike

Threatens 4.9 Million American Jobs Passed August 4, 2007 (first bill) Will simultaneously decrease supply and

increase costs of energy supplies to U.S. economy.

All regions of U.S. will be adversely impacted.

Hardest hit: Southeast, Great Lakes, Texas-Oklahoma.

Source: CRA International, November 2007

Impact of “Energy” Plan(Source: CRA International)

REGION PROJECTED JOB LOSS

Texas-Oklahoma 972,000

Southeast (FL, VA, NC, SC, TN, GA, AL, MS)

671,000

Midwest (OH, MI, IN, WV, KY)

595,000

Mississippi Valley (MO, IL, WI, LA, AR)

614,000

The “Mining Ban” Tax Hike

Threatens 170,000 American Jobs Passed November 1, 2007 Would effectively ban American minerals

production and make U.S. entirely dependent on foreign nations.

Idaho mine operator: “This is probably the most Draconian thing that I have ever read in my entire life.”

(Source: Las Vegas Review-Journal, October 2007)

The Investment Tax Hike

Passed November 9, 2007 Job impact: unknown Increases taxes on private equity and

hedge funds (“carried interest”) from 15% to nearly 38%.

Raises taxes on risk income, discouraging job-creating investment and risk-taking.

Will particularly discourage investment in vulnerable communities.

The “Mother of All Tax Hikes”

Threatens More Than 6 Million American Jobs

Introduced October 25, 2007 Would impose 4% surtax on Americans

(including small businesses) earning more than $150,000 a year.

Will affect 10 million taxpayers directly, including small business owners and farmers.

Will trigger loss of more than 1 million American jobs in 2013 alone. (Source: Heritage Foundation)

Impact of Pelosi-Rangel Tax Plan Source: Heritage Foundation

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2008 2010 2012 2014 2016

Impact on U.S.Employment (inthousands)

Real DisposablePersonal Income(in billions ofdollars)

JOB-KILLING SPENDING $330 billion in new taxes will pay for bigger

government, not deficit reduction.

Every $1.00 of higher taxes since 1947 has resulted in $1.07 in additional federal spending (Source: JEC).

No effort to reduce wasteful spending instead of raising taxes on families and small businesses.

House voted to increase entitlement spending by $178.6 billion between January and September 2007.

Wasteful earmarks tucked in spending bills without debate.

Where $330 Billion Goes:

In 2007, Congress raised taxes on families and small businesses to help pay for:

Increased entitlement spending Expanded federal bureaucracy Duplicative, ineffective, wasteful

programs Pork-barrel projects

While raising taxes on families and small businesses, Congress is funding. .

. A regional airport for corporate executives in WI.

A “hippie museum” in Woodstock, NY.

$2 million for yoga and alternative medical research.

“Noah’s Ark” children’s play park in CA.

The Tom Daschle Center for Public Service in SD.

“Monuments to Me” for Reps. Mike Doyle, James Clyburn, Charlie Rangel.

Street improvements for celebrity shoppers in LA’s trendy Fashion District.

An “education project” aboard a 65-foot catamaran sailing Monterey Bay.

“Green pork” for local communities (Al Gore DVDs? Lexus hybrids for Beverly Hills?)

JOB-KILLING LAWSUITS

Lawyers and law firms gave $23.7 million to Democratic Party during the 2006 election cycle.

(Source: Center for Responsive Politics)

Democratic Congress returned favor in 2007 by passing numerous bills encouraging job-killing lawsuits on employers and workers.

Bills Promoting Job-Killing Lawsuits

Lilly Ledbetter Fair Pay Act (removes statute of limitations on job discrimination claims)

Employment Non-Discrimination Act (prohibits discrimination on basis of “perceived” sexual orientation)

Blocked liability protection for companies cooperating with government after 9/11.

Numerous bills banning use of arbitration to settle disputes between consumers and sellers.

JOB-KILLING REGULATIONS & MANDATES

Washington labor bosses gave nearly $60 million in PAC contributions to Democratic candidates in the 2006 election cycle.

(Source: Center for Responsive Politics)

Democratic Congress returned favor in 2007 by passing numerous bills imposing job-killing mandates and regulations on small businesses and employers.

The Minimum Wage Mandate

Threatens 1.6 Million American Jobs Democrat-led House has shown

willingness to impose minimum wage hikes without small business relief.

“Clean” minimum wage increase would impose $5-7 billion unfunded mandate on small businesses (Source:

CBO), destroy 20% of minimum wage workforce (Source: Hoover Foundation).

The Port “Security” Mandate

Threatens 356,000 American Jobs 100% screening mandate imposed

on U.S. ports without regard to feasibility, alternatives, or impact on U.S. workers.

Could cost employers $20 billion and force job losses of 365,305 jobs

(Source: Homeland Security Committee minority staff analysis of Bureau of Labor Statistics data)

The War on American Jobs: SUMMARY

To pay for bigger government, Congress has declared war on American jobs at a time when working families and our economy can least afford it.

During the 2007, the House approved more than $330 billion in new taxes to pay for hundreds of billions of dollars in bigger government and wasteful pork.

These tax increases threaten more than 16 million

American jobs.

Millions more jobs are threatened by new mandates, regulations and lawsuits sought by Democrats’ special-interest allies.