More Evidence that Obama’s Recruiting of Democrat Carmona Will Haunt Arizona

PHOENIX – On the heels of last week’s devastating 8% unemployment report, two new reports on the economy confirm President Obama’s tax hike plan and defense spending cuts will destroy even more jobs, including 50,000 in Arizona.  Democrat Richard Carmona, who was recruited to run for the U.S. Senate by Obama, would increase the power of Democrats to push these damaging tax proposals and cuts in defense industry jobs.

Ernst & Young released a study today showing unemployment would increase by .5 percent – meaning roughly 710,000 fewer jobs nationally – if the president’s small business tax hike is imposed.  And new research prepared for the Aerospace Industries Association predicts a loss of 1.1 million jobs nationwide if defense spending cuts go into effect.

“At a time when our country is so desperate for economic recovery, President Obama and his Democrat friends like Richard Carmona are raising taxes and hurting job creators,” said Tim Sifert, spokesman for the Arizona Republican Party.  “Carmona and his liberal Democrat pals are once again showing how ineffective they are in encouraging job growth and a strong economy.”

BACKGROUND …

Democrat tax hikes will cost 710,000 jobs:

* Output in the long-run would fall by 1.3%, or $200 billion, in today’s economy.
Employment in the long-run would fall by 0.5% or, roughly 710,000 fewer jobs, in today’s economy.
* Capital stock and investment in the long-run would fall by 1.4% and 2.4%, respectively.
* Real after-tax wages would fall by 1.8%, reflecting a decline in workers’ living standards (“Long-run macroeconomic impact of increasing tax rates on high-income taxpayers in 2013” Ernst & Young, July 2012)
Defense Cuts will kill 50,000 Arizona Jobs:
“Arizona: 49,189 Total Job Losses,” (Stephen Fuller, George Mason University, “State Employment Impacts of the Budget Control Act of 2011, Table 3.”) 

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