There are very few polticians like Senator Charles ‘Chuck” Schumer in the nation. At least that is what one might hope at times. Especially when you hear about Senator Schumer’s outburst against “job-killing taxes”.
In Rochester, NY Senator Schumer was at American Aerogel Corp. It was there that he decided to take on the $20 per worker surcharge that the US government charges State Government for loans to cover unemployment. The cost to American Aerogel Corp is $1,000 a year. Which Sen. Schumer is adamant about repealing.
Sen. Schumer stated,
Sounds impressive, but we thought about it for a moment.
Senator Schumer supports the Health Care Reform. It is a law that the CBO has determined will increase the national deficit – against the promises about the law prior to passage. Increasing the deficit is a problem for the nation, and has caused a downgrade in the credit rating that may soon cause an increase in interest rates. A scenario that we believe is similar in outcome to the result of a default for business and individuals, as when Sen. Schumer wrote to us on the debt ceiling crisis and said,
“Default would raise interest payments and weaken the dollar — causing average New Yorkers to pay more for everything from gasoline to food. Interest rates would skyrocket, costing the average American $1,000 more a year to pay their mortgage.
But forget about the similarity in outcome. Forget about the increase in the deficit.
The Health Care Reform is a tax. Not because we think so, but because that is the EXACT justification the Federal Government is using in courts versus the 26 States that are trying to prove the law unconsitutional. So Sen. Schumer opposes an admittedly small tax, but supports staunchly a massive tax.
Looking strictly at job growth or reduction, the Health Care Reform will cause at least 30% of companies to drop healthcare, with 50% at least considering doing so, according to the McKinsey Quarterly Report. That’s because of the increased cost. Simple logic states that if 30% will definitely drop coverage, and another 20% are thinking about it, due to the cost increase, then the remaining 50% who have the same cost increase are less likely to hire new employees. They simply won’t be able to afford them.
More specific, according to Thomas Miller, Resident Fellow, American Enterprise Institute:
Much more certain to occur will be various tax and regulatory disincentives that mean slower growth by smaller businesses, reduced labor participation and working hours by lower-wage workers, and less saving and investment by higher-income taxpayers facing new Medicare taxes on their capital income. Other taxes in the law initially imposed on a medley of health industry sectors will eventually be passed through to the pockets of patients and consumers.
So higher taxes is bad for business and job growth. Sen. Schumer is upset that there is an increase of $20 per worker, because it is bad for business. But he supports a law that will increase taxes far more than $20 a worker. A law that cost in 2010:
Thats before the law even started to take effect. Imagine the costs in 2014, when the full effect of the law is in place. Again, higher taxes are “job-killing taxes” according to Sen. Schumer.
But forget all of that. Throw it all out of the window.
The reason that New York State must pay $95 million for the loan to pay State unemployment, is because “Congress didn’t extend the interest-free provision” in 2009.
Where does Senator Charles Schumer work? How long has he been in elected office?
The very “job-killing tax” that he is adamant about repealing, is from his own failure to ensure that the interest-free provision was included in the first place. A failure that occured when the Democrats had a super-majority in Congress and could pass ANY Bill they wished no matter the Republican opposition. Plus, Sen. Schumer is a senior and high ranking Democrat that can, and often does, get to hold sway over how a Bill is written and what it will include.
So, when you actually consider the cause-and-effect of this new tax on New York businesses, when you consider the hypocrisy of higher taxes being approved and smaller taxes being challenged, you have to wonder what Senator Schumer is up to. What is it that he is trying to obscure from the view of voters? We also wonder why, so far as we have seen, not one major news media organization has asked Sen. Schumer why he did not ensure the interest-free provision was included in 2009?
In the end one thing is clear, Sen. Schumer is posturing. He is trying to gain credit and political influence among voters today for trying to fix a problem that was caused by his inaction and failure in the past. Whether voters will reward him for his past ineptitude is unclear, but the fact that he desires that outcome is crystal clear.
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