The LuLac Edition #2284, December 3rd, 2012
WHO ARE THE JOB CREATORS?
For the last twelve years, we’ve heard that businesses big and small are the job creators. Partially true. The country is full of adventurous men and women who struck out on their own and took a chance, poured their heart and soul into an ideas or making a product that people would want to buy. These people are to be commended. But the ultimate job creators are the consumers that buy the products. Consumer demand sometimes spurs on innovation. But consumer demand creates the growth of a business. So with that in mind, I give you a message from the White House regarding the impact of the middle class tax cut on Pennsylvania. Worthwhile reading.
98 percent of Pennsylvania families who make less than $250,000 a year and would not see an income tax increase under the President’s plan. …Because Middle-class Families Drive Pennsylvania’s Economy… The bulk of economic activity comes from American families buying basic necessities like clothing and healthcare; durable goods like cars and furniture; and the food and gifts that millions will enjoy over the holiday season.
The retail industry employs 14.8 million Americans – including 637,400 in Pennsylvania – and has been a key part of the recovery.In the 40 months since the recession ended in June 2009, the retail industry alone has been responsible for more than 9 percent of overall employment growth and has added 438,000 jobs in the past 32 months.
Over the course of this year, American consumers are on pace to spend around $5 trillion on retail sales. And with the start of the holiday shopping season, which accounts for close to one fifth of industry sales nationwide,retailers can’t afford the threat of tax increases on middle-class families.
Which Is Why Raising Taxes On The Middle-class Will Hurt Pennsylvania’s Economy Pennsylvania’s economy can’t afford that right now. New analysis by the President’s Council of Economic Advisers (CEA) finds that:
This sharp rise in middle-class taxes and the resulting decline in consumption could slow the growth of real GDP by 1.6 percentage points in Pennsylvania.
Faced with these tax hikes, the CEA estimates that consumers in Pennsylvania could spend nearly $8.6 billion less than they otherwise would have in 2013 just because of higher taxes. Consumers nationwide would likely spend nearly $200 billion less than they otherwise would have in 2013.