Wicker Questions Bernanke on Impact of Raising Taxes on Economic Growth
Tuesday, July 17, 2012
WASHINGTON, DC – Senator Roger Wicker (R-Miss.), a member of the Senate Banking, Housing, and Urban Affairs Committee, today questioned Federal Reserve Chairman Ben Bernanke about the tax increase scheduled to take effect on Jan. 1 if Congress fails to act.
President Obama has suggested a plan to raise taxes on individuals earning more than $250,000 per year, which would impact many small businesses, but Bernanke stated that tax increases could hamper economic growth if the increases reduced incentives and demand.
Click here to watch Senator Wicker and Chairman Bernanke.
Wicker: “The president came out last week and reiterated his request that suggests we raise taxes on the $250,000 and above. I think you’ll agree in terms of the federal deficit that’s a fairly small amount that would be a tax on job creators and would make your numbers worse, wouldn’t it?”
Bernanke: “It could if it reduced incentives and if it reduced demand.”