Listening to the Democrats this summer, you’re unlikely to hear about an impending tax increase. In an effort to sanitize their historically irresponsible decision to raise tax rates in the midst of a struggling economy, President Obama and the congressional majority say they are merely “allowing the Bush tax cuts” to expire.

Skillful messaging perhaps, but cold comfort to the millions of Americans and small businesses who aren’t concerned with what their effective tax rate was in 2001. For them, on Jan. 1, one of two things will happen: Taxes will go up, or taxes will stay the same. Coming to grips with this reality will be crucial to jumpstarting the economic recovery. Decisions on whether to buy an appliance, invest in a company, or expand a business are made by taking into account after-tax returns in the future — not in the past.

Democrats want Americans to believe that by letting tax rates rise they have discovered religion as deficit cutters. But after a two-year assault on the federal trough in which Congress passed the notoriously wasteful stimulus and added a new health care entitlement, few Americans are even bothering to listen. In reality, the harm this tax increase will inflict on jobs and gross domestic product will strongly outweigh any presumed boost in tax revenues.

American businesses are sitting on top of a record $2 trillion in cash — money that could be spent hiring more workers, funding new projects or paying out dividends to investors. But right now these dollars remain stuck on the sidelines.

Already grappling with weak demand for goods and services, businesses of all sizes have five main costs and expenses that impact their bottom lines. Thanks to the agenda in Washington, all are going up, turning the White House’s much-touted “Recovery Summer” into the “Summer of Uncertainty.” Here’s a look:

• Taxes will jump next year on everything from ordinary income, capital gains, dividends and estates. And with our national debt soaring, the prospect of even more tax increases in the future seems more likely.
• Health-care costs are growing as a result of Obamacare’s mandates and inflationary impact on premiums.
• Energy costs remain in limbo as leading Democrats, led by Sen. John Kerry, float the idea of passing cap-and-trade during the lame-duck session of Congress.
• Credit is becoming more expensive and is increasingly out of reach for most small businesses, partly because the 2,300-plus page financial regulatory bill encourages banks to horde their capital rather than lend it.
• Labor costs also threaten to climb higher as labor unions dig in their heels and gear up for another push to pass card check.

During last night’s Oval Office address, President Obama vowed that America would “nurture the ideas that spring from our entrepreneurs.” But if government doesn’t stop penalizing hard work and discouraging risk taking, there won’t be any entrepreneurs left.

In this environment, it’s understandable why businesses — which have pared their expenses by laying off over 2 million workers since Congress passed the stimulus in February 2009 — would be reluctant to start hiring again. Hence the disappointing 71,000 jobs created by the private sector last month — a figure too small to keep up with the growth of the workforce, let alone take a bite out of the 9.5% unemployment rate.

No matter how much money President Obama borrows and spends, our economy simply will not recover until small, medium and large businesses have the confidence to put Americans back to work.

Republicans categorically oppose hiking taxes in times of economic crisis. For the past 19 months, we have offered better alternatives to the stimulus, cap-and-trade and the health care overhaul that keep the growth of government in check. We have taken a scalpel to the budget and offered up hundreds of billions of dollars of spending cuts. I don’t believe any American thinks that this $3 trillion is being well spent.

Next year, President Obama is going to preside over one of the largest tax increases on families and small businesses in American history. How his administration has convinced itself that this is a good idea right now is beyond comprehension.

Mr. President, the federal budget is teeming with waste. If you want to rein in the deficit, Republicans welcome you to sit down with us and go line by line through the budget to cut needless spending. But don’t impose sweeping tax hikes that will only make a bad economic picture much worse.

Minority Whip Eric Cantor questions the motives behind the $26 billion bailout bill approved by the House

Rep. Eric Cantor (R-Va.) discusses the job market and the upcoming elections with CNBC.

Henrico job fair attracts long lines
By Andy Jenks
NBC 12

At Henrico’s Deep Run High School, there was a competition that attracted a big crowd. But it’s not a sporting event, nor is it anything one might call entertaining.

The competition was for a paycheck, and way of life. More than 3,000 people packed a job fair knowing full well that they outnumber the positions available.

Way in the back of a line that seems impossibly long is Amy Harmon, who worked for Circuit City until it went under.

“There’s a lot of folks that need jobs, and that are willing to come on out and look for jobs,” Harmon said.

Amy and everyone else lined up very early for the chance at just a few seconds of face time with potential employers.

“I was expecting this, ’cause no one has jobs, and it’s starting to hit this economy real bad in Virginia,” said job seeker Michael Jones.

The job fair, hosted by Rep. Eric Cantor (R, Henrico), comes at a critical time.

“When you have over 100 people in line an hour and a half before the doors open, I think indicates a real need to bring job seekers and employers together,” Cantor said.

The Richmond-area unemployment rate is inching upward, slightly, to 7.6 percent, and the region’s public employment center in Henrico is preparing for millions less in federal stimulus aid.

“Government spending money doesn’t create jobs. This jobs fair is trying to match up people looking for employment to be hired,” Cantor said.

Cantor’s involvement, though, was criticized by Democrats, who pointed out that some of the industries on display benefited from stimulus money. But on this day, politics took a back seat to reality.

“I need work. Just like everybody else. There are a lot of people that need work,” said job seeker Gordon Bengtson.

That’s why so many say it’s worth it to wait in line, and imagine the first step toward a new career.

“I just have as much chance as the next person, so I’m good,” said job seeker Janet Johnson.

The job fair, which included a police presence and refreshments, was paid for with taxpayer dollars. A Cantor spokesperson was not immediately able to confirm what was spent.

Rep. Eric Cantor appears on CNBC’s Squawk Box to discuss business issues among current legislation.

House Republican Whip Eric Cantor appeared on Fox News “On the Record” with Greta van Susteren to discuss the overwhelming response from the American people to cut spending and the Republican efforts to bring some fiscal restraint to Washington.