What the Wrong Change could Do to Our Jobs and Economy.

Improving the economy is a main issue for millions of Americans. History proves that a key driver of economic growth and prosperity is lower tax rates, which allow businesses to hire, buy goods and services, and make major investments in things like new equipment, automobiles and facilities.

Senator Obama believes that increasing taxes on American businesses at this point and time is the way to return America to prosperity. It’s true that we need a change, but where our economy is concerned, is Senator Obama’s plan the Right Change?

Here’s what the experts say:

Stanford University Economist, Michael Boskin: “History teaches us that high taxes and protectionism are not conducive to a thriving economy, the extreme case being the higher taxes and tariffs that deepened the Great Depression. While such a policy mix would be a real change, as philosophers remind us, change is not always progress.” (“Obamanomics is a Recipe for Recession” The Wall Street Journal, July 29, 2008)

CNBC’s Larry Kudlow: "First off, you don't raise taxes during a recession. That's a no-brainer." (Larry Kudlow, Op-Ed, "Why Not Blame Obama?" National Review, 4/18/08)

James Pethokoukis, U.S. News & World Report: If Obama is correct and the economy ... is 'in a shambles' and 'teetering not just on the edge of recession, but potentially worse,' why would he want to nearly double the capital-gains-tax rate, which is a tax on savings, investment, and, yes, housing? ... [W]hy would he want raise payroll taxes by 6 to 12 percentage points on people making $100,000 or more? And again, Obama said this right after pledging not to raise taxes on people making under $200,000 to $250,000." (James Pethokoukis, "Obama-Clinton Debate In Philadelphia Spawns Weird Economics," U.S. News & World Report's "Capital Commerce" Blog, www.usnews.com, 4/17/08)

Grover Norquist, president, Americans for Tax Reform: “Many Democrats in Congress have proposed making all small businesses (including S corporations) pay this 50-plus percent rate. A small business tax rate that high would be the highest marginal rate faced by them in nearly a quarter-century… Since small businesses create a majority of jobs in America, Main Street closing up shop will have a direct impact on the family budget, as well. Plants and equipment will go unused. Despite the misguided opinions of static scorers in Washington, federal tax revenues will likely decline as the economy staggers into a full-on recession.”

Michael Barone, U.S. News & World Report: “Herbert Hoover raised taxes on high earners sharply and, ignoring a letter signed by 1,000 economists, signed the Smoot-Hawley tariff in 1930. The results were not pretty. Until now, his example has not commended itself to Democrats. One wonders whether voters will agree that tax increases will stimulate the economy.” (Michael Barone, Op-Ed, “Uncle Sam Pays? Sure, Whatever,” U.S. News & World Report, 4/21/08)

Amity Schlaes, Bloomberg News: "When the capital-gains rate is low, America feels like doing business. When the rate is high, the country turns its attention elsewhere. ... If a capital-gains rate increase alone, however, makes it into 2008 law, the U.S. economy will become less competitive compared with other economies at a crucial time. And if you don't mind me saying, that's a spread that can affect a lot of relationships." (Amity Shlaes, Op-Ed, "Wife-Swapping, Taxes And Spreads Are All Related," Bloomberg.com, 8/1/07)

The Tax Foundation: “Among 30 industrialized nations, the United States has the second highest corporate tax rate (39.3%) in the world. As other nations gain on the US in the basic ingredients of economic competitiveness, the imbalance in tax rates is becoming a bigger drag on the US economy. (Tax Foundation)