Expiration of the Bush-era tax cuts for annual incomes above $250,000 in a weak economy will translate to layoffs, Sen. Jim DeMint claimed Tuesday on CNBC.
“The issue is it’s a quarter of America's work force working for those people who are likely to get a pink slip, at least some of them, when the president gives them a new tax bill, so the president is focused on the things that are going to hurt jobs almost every time he’s opening his mouth,” he said on “The Kudlow Report.” “He’s playing politics to try to distract attention from his impact on our economy.”
President Obama recently announced that he would seek to extend the so-called Bush tax cuts only for the first $250,000 of income.
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“The top 2 percent of Americans are paying the highest proportion of national taxes of any country in the world. If we want to talk about fairness, we need to look at a simple flat tax rate,” said DeMint, R-S.C “Republicans want to keep the current tax rates the same until we can replace them with a simple flat rate, with a new president and hopefully a new Senate.”
Economist Austan Goolsbee disagreed.