Eric Cantor: Beware the Obama Tax Increases

Rep. Eric Cantor is warning about the Dem's plans to allow the Bush tax cuts to expire thus raising taxes on pretty much everybody in the middle of a very weak economy:

Listening to the Democrats this summer, you're unlikely to hear about an impending tax increase. In an effort to sanitize their historically irresponsible decision to raise tax rates in the midst of a struggling economy, President Obama and the congressional majority say they are merely "allowing the Bush tax cuts" to expire.

Skillful messaging perhaps, but cold comfort to the millions of Americans and small businesses who aren't concerned with what their effective tax rate was in 2001. For them, on Jan. 1, one of two things will happen: Taxes will go up, or taxes will stay the same. Coming to grips with this reality will be crucial to jumpstarting the economic recovery. Decisions on whether to buy an appliance, invest in a company, or expand a business are made by taking into account after-tax returns in the future — not in the past.

Democrats want Americans to believe that by letting tax rates rise they have discovered religion as deficit cutters. But after a two-year assault on the federal trough in which Congress passed the notoriously wasteful stimulus and added a new health care entitlement, few Americans are even bothering to listen. In reality, the harm this tax increase will inflict on jobs and gross domestic product will strongly outweigh any presumed boost in tax revenues.

Read the rest of it here.

As Cantor points out businesses are sitting on a huge amount of cash right now because of the uncertainty of the tax situation and because they still don't know what Obamacare will do to their bottom line. Rather than hire new people the companies are hoarding cash to try and survive a bit longer.  I can't blame them, but until business feels secure in adding to their payroll the recovery will not happen.