Obama plows ahead with plans to raise taxes, not create jobs
What better way for President Obama to welcome me back from the beach than with a wrong-headed plan to jack up income taxes on “the rich.” From the Hill:
The White House said Monday that President Obama wants to pay for his $447 billion jobs bill by raising taxes on the wealthy and businesses.
In fact, we don’t really need to go beyond that first sentence: Obama’s bright idea is to pay for a jobs bill by raising taxes on businesses. The economy be damned, this president is determined to take money from job creators and use it to renovate school buildings. That would be bad enough — but, as Megan McArdle explains, it’s already too late for school-renovation projects to navigate the federal procurement process in time for work to begin next summer. Which means we’re back to spending money on jobs that aren’t ready for shovels.
Still, let’s soldier on to the details as provided by Jack Lew, director of the Office of Management and Budget:
The chief provision…would be to limit itemized deductions for individuals who make more than $200,000 a year and families that make more than $250,000, something the Obama administration has previously pushed to do through its budget proposals. Lew told reporters at the White House press briefing that this would raise about $400 billion.
The administration would tax the income investment fund managers make, known as “carried interest,” as regular income instead of as capital gains, which has a low 15 percent tax rate. This is another longstanding administration goal that has been resisted by Wall Street as well as some Democrats.
The administration estimates the capital gains change would provide $18 billion in revenue.
The administration also wants to eliminate tax breaks for the oil-and-gas sector, which would raise $40 billion, the administration said.
Another $3 billion would come from changing the way corporate jets depreciate. With a few other revenue increases, Lew indicated the total measures proposed by the administration would bring in $467 billion, $20 billion more than the cost of the bill.
Note, above, that line about the first item being “something the Obama administration has previously pushed to do through its budget proposals.” One wonders whether Obama has produced a “jobs bill” so much as a “tax increase justification bill.”
As it happens, I agree in principle with reducing or eliminating deductions and credits from the tax code — but as a trade-off for lowering marginal tax rates. Instead, Obama plans to raise tax rates on these same taxpayers (while apparently double-counting the increased revenues as part of his deficit-reduction package). He is effectively trying to make the tax code more complicated, not simpler. And experience teaches us that the wealthy are best positioned to take advantage of a complicated tax code and send Uncle Sam less money than he expected. This is a lose-lose-lose.
And yet this is not the only major flaw with Obama’s proposal. The congressional “super committee” tasked with drafting a deficit-reduction plan this fall is expected to consider flattening the tax code — that is, removing loopholes and lowering rates — for all taxpayers as part of its package. But if Obama removes loopholes for high earners to pay for his jobs plan, does anyone really think the super committee is then, separately, going to remove loopholes for the middle class?
And without that component, everything else on Obama’s list of “pay-fors” amounts to peanuts relative to the cost of the jobs bill.
This plan will win plaudits from the likes of MoveOn.org — and given the president’s deep political problems heading into 2012, maybe that’s all it’s designed to do. But it’s a double-whammy for the millions of Americans who are out of work and tired of hoping for change.
– By Kyle Wingfield
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211 comments Add your comment
Dusty
September 19th, 2011
3:39 pm
Well, it looks like liberals have a PLAN all worked out. First is the Robin Hood Plan. “Take from the rich” or “They made it & we take it” Plan.
If that doesn’t work, then there’s the “Fail once like a dunce. Do it again” Plan. Bound to work on shovel shifting and thoughtless temporary talent. In five years, the first signs of “progress” will appear. The country goes bankrupt so NOBODY has any money including the rich. Everybody is equally poor.
This will be called SUCCESS by Democrats.
Aquagirl
September 19th, 2011
3:41 pm
The U.S. sold her soul for short term profits and cheap consumer goods and now it’s time to pay the fiddler.
There’s really nothing to add to this. We’ve built our economy on these things and people are shocked…shocked! at the collapse. Duh.
Tiberius - Your lightning rod of hate!
September 19th, 2011
3:42 pm
Hillbilly D, great post!
I’ll add that government policies have artificially inflated prices and markets in order to protect people from losing value which has skewed the economy in the rest of the world’s favor. Housing prices and wages have got to be allowed to bottom out to restore a natural balance to our economy if we are ever going to hope to compete with the rest of the world again in manufacturing.
John
September 19th, 2011
3:42 pm
Tiberius – Your lightning rod of hate!
That’s part of the problem. Until someone starts investing in our country and our workers, the economy will stay stagnant. Obama wants to invest in our infrastructure just as our government did after the depression and other down economic times. It has gotten us out of hard times before so it’s known to work but Republicans won’t have it…even though Republicans supported such measures in the past. Republicans care about 2 things…making sure Obama is a one term President even at the expense of the country and protecting the wealthy from tax increases since they all signed their souls to Grover Norquist.
John
September 19th, 2011
3:46 pm
Alabama Patriot
What? You said they can do whatever they want to with their money. I only said as long as it’s legal. If you believe they can do whatever they want with their money, let’s see what happens if they finance terror organizations or launder money, etc.
No wheres did I say sitting on it is illegal.
Dusty
September 19th, 2011
3:47 pm
AquaGirl
You may be collapsed but I’m not. Sorry you sold your soul but I didn’t. This is still the greatest country ever. Too bad you haven’t noticed. Would CPR help your condition?
Tiberius - Your lightning rod of hate!
September 19th, 2011
3:59 pm
John, TEMPORARY spending at the cost of borrowing more money has NEVER been the solution to getting out of recession or depression (long-term), and with our debt and deficit right now at record levels it is an even worse prescription for failure.
And that phony “Republicans have supported it in the past” argument is about as grade-school as you can get (but typical for our Carnival Barker-in-Chief). Just because “A” Republican, or “some” Republicans supported something in the past doesn’t mean a majority of them do now, nor does supporting something in the past with different economic conditions that allowed for that support mean that the support could or should be there now.
John
September 19th, 2011
4:00 pm
While we’re talking about taxes…has everyone noticed while Republicans are protecting the wealthy from tax increases at the same time they are in support of increasing taxes on the working class? Obama has called on Congress to extend his payroll tax cut and cut it even further…a tax cut that applies to all working class and their employers but Republicans are not supporting it. Republicans support tax hikes as long as those tax hikes does not affect the wealthy.
TO THE USUAL LAIRS!
September 19th, 2011
4:01 pm
The obumer stimulus bill created what jobs?
Promise made: Unemployment would not rise above 8%. In reality… promise broken! Unemployment rose to 10% and above.
Fact: Since the PORKULUS 1.0 spending bill past there has been a net job loss!
Dusty
September 19th, 2011
4:02 pm
HillBilly,
I am glad to see you here but usually you are not quite so pessimistic. If everybody in the USA feels that way, nothing will work.
Reminds me of a ball game. If the players think they are losing and give up, then the game is lost.
I’m not blind nor deaf but let’s not bury the country with misery. We’ve been through a lot worse.
Tiberius - Your lightning rod of hate!
September 19th, 2011
4:10 pm
“While we’re talking about taxes…has everyone noticed while Republicans are protecting the wealthy from tax increases at the same time they are in support of increasing taxes on the working class?”
Of course, that statement isn’t even remotely true, and you know it, John.
Just because you don’t like one part of what finances the bill doesn’t mean you’re against other parts of the bill. Yours is a particularly weasely argument that is all-too-typical of the political discourse the left and right are guilty of these days.
If you want to make these types of statements feel free to do so, as long as you understand that there are some of us on here that are going to call you out on them. If you want a free shot at making inane statements such as that, the Bookman blog is ready when you are.
Jefferson
September 19th, 2011
4:11 pm
The GOP never wants to pay its bills as shown from 2000-2008. Now they want to lie to the citizens and back out on their promises to them. Nothing has changed with that crowd.
John
September 19th, 2011
4:13 pm
Tiberius – Your lightning rod of hate!
Infrastructure spending has always been bipartisan…not just supported by “A” Republican.
Hillbilly D
September 19th, 2011
4:14 pm
Dusty
I’m pessimistic because I don’t see anybody, in a position of power, doing anything to make things better. And everybody you talk to wants things to get better but they’ll still run to WalMart and buy stuff made in China, because it’s cheaper. If it don’t last and you have to throw it away and get another, was it really cheaper? But that’s another discussion for another day.
Speaking of baseball, what’s wrong with your Braves? A couple weeks ago I thought they were home free unless they totally collapsed. They better get it together.
The Obozo Rule
September 19th, 2011
4:16 pm
How’s that shovel ready obazo infrastructure building project coming along over at Solyndra?
Appears things got so busy even the FBI had to lend a hand.
Just saying…
John
September 19th, 2011
4:24 pm
Tiberius – Your lightning rod of hate!
My statement isn’t remotely true? What Republican has come out publicly in support of that portion of the bill even if they don’t support the rest of the bill? Their argument against this part of the bill is that this tax cut wouldn’t be permanent. Strange though they supported the Bush temporary tax cut as well as the temporary extensions of the Bush tax cuts.
Tiberius - Your lightning rod of hate!
September 19th, 2011
4:29 pm
“Infrastructure spending has always been bipartisan…not just supported by “A” Republican.”
Usually, but not always. And infrastructure isn’t the only spending in that bill. But this time, it’s the “How are we going to pay for it?” that is the sticking point.
John
September 19th, 2011
4:30 pm
By Republicans own definition, if they allow the Obama temporary payroll tax cuts to expire, then they have increased taxes.
MarkV
September 19th, 2011
4:34 pm
Tiberius @3:28 pm
“When people start off their posts with the term “You mean” they are trying to deflect from the actual meaning of the original post because they don’t have a valid argument against it without the deflection.”
A silly defense when caught at writing a silly.comment.
Dusty
September 19th, 2011
4:34 pm
HillBilly,
The Braves have a few ups and downs but they are still the best. If they could keep everybody off the DL things would be a little better.
But a lot of rookies are fighting for ‘em and doing their best. Altogether, they will make a good show. But like you say, they better get it together SOON and I am all for that. GO Braves!!
Do let us discuss Walmart sometimes.
Tiberius - Your lightning rod of hate!
September 19th, 2011
4:36 pm
“My statement isn’t remotely true?”
What part of “not remotely true” do you NOT understand?
“What Republican has come out publicly in support of that portion of the bill even if they don’t support the rest of the bill?”
Conversely, which Republican has come out in “favor” of a tax hike on the working class as you so childishly put it? I believe you need a refresher course on how bills go through the legislative process.
you see, YOU have to prove YOUR statement is true, as you were the one that made it.
Tiberius - Your lightning rod of hate!
September 19th, 2011
4:38 pm
“A silly defense when caught at writing a silly.comment.”
Another deflection. I suggest sticking to the original post, as you are once again digging a deeper hole for yourself, MarkV.
Tiberius - Your lightning rod of hate!
September 19th, 2011
4:40 pm
“By Republicans own definition, if they allow the Obama temporary payroll tax cuts to expire, then they have increased taxes.’
Yet “Republicans” aren’t calling for the payroll tax cuts to expire, John, which is your contention.
John
September 19th, 2011
4:45 pm
Tiberius – Your lightning rod of hate!
No problem…here’s part of the memo from the Republican House leadership to their caucus signaling they could possibly support it if it were permanent. However, they supported temporary extension of the Bush tax cuts for the wealthy.
Memo On The President’s Jobs Proposal
TO: House Republicans
FR: Speaker Boehner, Leader Cantor, Whip McCarthy, and Chairman Hensarling
DT: September 16, 2011
RE: The President’s Jobs Proposal
Payroll Tax Relief: The President has proposed an extension and a significant expansion of the current payroll tax holiday. The President would more than double the amount of the holiday (up from $110 billion this year to $240 billion in 2012, including an expansion of this proposal to some of the employers’ share of these taxes), and would sunset the entire payroll tax holiday effective January 1, 2013. So while employees would see an additional temporary benefit from this proposal in 2012 (the President would modestly expand the current payroll holiday), they would experience a larger effective tax increase 12 months later when the payroll tax reverted back to its full level. There may be significant unforeseen downsides to large temporary tax cuts immediately followed by large tax increases. Compounding this negative effect is the scheduled increase in all individual tax rates, capital gain and dividend rates, and the elimination/reduction of various individual credits and deductions. In short, we are creating significant new uncertainty in an already uncertain economy. Moreover, the proposal increases general fund transfers to Social Security, something that needs to be carefully considered given the long-term challenges facing that program and the implications of those challenges for taxpayers. Finally, the President proposes to pay for this one-year expanded tax holiday by permanently limiting the ability of those earning more than $200,000 a year to take full advantage of their itemized deductions, including their charitable deductions. With over 40% of charitable deductions being claimed by those impacted by this proposed policy, the practical effect is a tax on and a reduction in charitable giving. This will negatively impact thousands of churches and non-profits. House Republicans are supportive of tax relief for working families and small businesses, but the temporary relief proposed by the President must not cause unforeseen harm to the economy 15 months from now and it shouldn’t be offset with permanent tax increases; and it shouldn’t come at the expense of the nation’s charities. That said, a commitment to honest and fruitful discussions between the White House and Congressional Leaders could lead to potential bipartisan agreement on a plan that avoids these downsides and provides tax relief for the middle class that encourages short- and long-term economic growth and job creation.
Dusty
September 19th, 2011
4:47 pm
Tiberius..Your lightning rod.
Please keep on asking that BIG question: *How are we going to pay for it?”
Everytime I hear the President say that we are going to add thia and that program and it will cost so many trillions to be paid for somehow and sometime in the future, I am truly amazed.
Does the man have no sense of debt and due payment? He embodies the old cynical statement that wonders “Doesn’t he know that money doesn’t grow on trees?” It doesn’t grow on government projects either.
The president is considered an intellectual but he certainly is not even smart about “money”.
John
September 19th, 2011
4:48 pm
Tiberius – Your lightning rod of hate!
“Yet “Republicans” aren’t calling for the payroll tax cuts to expire, John, which is your contention.”
If the Obama payroll tax cuts are allowed to expire due to the fact they would not be permanent, would you then agree the Republican raised taxes on the working class?
I Report (-: You Whine )-: Thee Magnificent!!! mmm, mmmm, mmmmm! Just sayin...
September 19th, 2011
4:48 pm
To the degree the press neglected its function as watchdog and turned cupbearer to a styrofoam demigod, it is a partner in the flaws and failures of what is turning out to be one of the most miserable performances in the modern history of the American presidency.
Even the libs know this^^-
CHICAGO TRIBUNE: Why Obama should withdraw from 2012 race…
Yes, begone obozo.
JF McNamara
September 19th, 2011
4:52 pm
Kyle,
I know you only listen at Republican propaganda, but here it is a bluntly as I can say it.
We need money to pay down our debts. We have to raise taxes on everyone and freeze spending NOW. Unemployment for those with college degrees is less than 4%, and free trade allowed big business to outsource all of our mid tier jobs. Housing is in over supply, so unemployment will remain high. We won’t get significant growth until 2016 (at best). No party and no stimulus will effect what is going on. Take responsability for your actions, Stop passing the burden on, and Pay your bills.
We put it on the credit card, so we need to pay for it. Obama is trying to soft sell that, but Republicans won’t play along. Tell your party to grow up, acknowledge the math, and do their job. Continuing the propaganda of “taxing job creators” and “tax cuts increase revenue” is dumb and counter productive to our real needs. Raise taxes and balance the budget.
John
September 19th, 2011
4:53 pm
Dusty
Get up from under that rock…he is calling for increase in taxes for the wealthy and elimination of some deductions and subsidies to pay for it.
While saying he is not smart about money, did you notice at last week’s Republican tea party debate every one called for the repeal on Obamacare but not a singe one would support repealing Medicare Part D passed by Republicans and signed into law by Bush. Amazing when you consider that Medicare Part D will add more to the deficit than Obamacare since Obamacare is paid for and Medicare Part D is not.
Tiberius - Your lightning rod of hate!
September 19th, 2011
4:54 pm
“If the Obama payroll tax cuts are allowed to expire due to the fact they would not be permanent, would you then agree the Republican raised taxes on the working class?”
I don’t do “ifs”, John. As in, “If Space Monkeys invaded the Earth, would life as we know it change”? Since that isn’t likely to happen (nor is your scenario at this time), I don’t do “ifs”.
Nice try.
saywhat?
September 19th, 2011
4:56 pm
Tiberius – Your lightning rod of hate!
September 19th, 2011
4:40 pm
***Yet “Republicans” aren’t calling for the payroll tax cuts to expire, John, which is your contention.***
They’re not? Only took me less than 60 seconds on the google to find that some are.
saywhat?
September 19th, 2011
4:57 pm
http://news.yahoo.com/gop-may-ok-tax-increase-obama-hopes-block-124016578.html
forgot to post the link, but I’m sure with a little effort you can find plenty of your own.
Tiberius - Your lightning rod of hate!
September 19th, 2011
4:57 pm
Yeah, Dusty. I love his “Everything in the bill is paid for” comments.
Yeah, if it was to pass without any changes it would be. As if any bill that ever went through Congress was never changed.
Dusty
September 19th, 2011
5:00 pm
I Report,
You really ever think that Obama would withdraw from the 2012 race? I’d say “Not a chance!”.
In fact, I hope he won’t. We might end up with Hillary in the race and I believe she is more popular than President Obama.
That might not be a problem. But a “blighted bird in hand might be better than a pesky one in the bush” if you get my drift.
Not So Casual Observer
September 19th, 2011
5:02 pm
Once again, Liberal thought is to blame for most all of the problems in the United States, whether economic or taxation.
Liberals are cemented to the idea that you can never take enough money from those who earn to give to those who yearn.
You Liberals need to remove yourself from the lay-about position and actually do something. Give all of your money to those siphoning the wealth of the country into the abyss of welfare.
In the meantime the actual “doers” will be producing and rebuilding the economy destroyed by years and years of a Congress controlled by Democrats.
John
September 19th, 2011
5:03 pm
Tiberius – Your lightning rod of hate!
“I don’t do “ifs”, John.”
But you do. Just the last few post you did in defending Republicans. Didn’t you post…”Just because you don’t like one part of what finances the bill doesn’t mean you’re against other parts of the bill. ” implying they may/would support the bill IF it didn’t contain certain portions.
Tiberius - Your lightning rod of hate!
September 19th, 2011
5:05 pm
I suggest you read your provide link again, saywhat.
It talks about Republicans offering offsetting tax reductions to cover the payroll tax break, which is a zero net change in taxes.
Nice try.
Tiberius - Your lightning rod of hate!
September 19th, 2011
5:12 pm
“But you do.”
Once again, do NOT manufacture what you think I believe in, John. Keep it to what YOU believe, not what you think I believe.
Not So Casual Observer
September 19th, 2011
5:14 pm
“Tax increases for the wealthy” the envious Liberals cried. “Apple has too much money”, the Liberals chanted in unison.
“Here drink this Kool-Aid”, exhorted the Liberals Master, B.H. Obama.
So 20% of the earners pay 40% of the income tax and just over 50% of the earners pay 100% of the income tax – but that is not enough according to the Lib Loons posting here.
“Republicans are trying to raise taxes on the poor”, stated one Loon. No, but the only means to raise sufficient revenue to dent the defict that the Loons so love, is to expand the tax base. What, pray tell, is the problem with everyone paying SOMETHING? Eliminate the earned income credit and employ a minimum tax of 1-3% would be a nice start.
All the Great Society (a Democrat creation) has done is bury people in poverty and create a dependent class. The time has come to put the dependent class to work and have them “earn” their gubment checks with public service.
Also, dump the Internal Revenue Code for a consumption tax.
Dusty
September 19th, 2011
5:15 pm
ah dear John,
I would have to live under a rock if I thought you could correct our economic woes by “stealing” money from the rich and raising taxes eventually on every person in this country. That seems to be the desire of you Democrats. Kill the goose that lays the golden egg.
As to Obamacare, the great medical bruhaha of the century. no one knows what this voluminous batch of regulations will eventually cost or what it will mean to healthcare.
Good healthcare is expensive. If you think Medicare is expensive, wait till Obamacare hits the fan. It will be limited healthcare spread thin at unimaginable costs piled on top of the huge debt we already have.
Wake up, son. Aint nothing free in this world and you won’t get it with ObamaCare.
John
September 19th, 2011
5:16 pm
Tiberius – Your lightning rod of hate!
So if they vote against a bill because they did like another part, then they’re really for it?
joe
September 19th, 2011
5:16 pm
Obama is showing proper leadership. His jobs bill should be passed. NOW!
Obama 2012: Elect him. NOW!!
Tiberius - Your lightning rod of hate!
September 19th, 2011
5:23 pm
“So if they vote against a bill because they did like another part, then they’re really for it?”
What part of “I don’t do “ifs”, do you NOT understand, John?
Look, John, you’re trying to get someone (who is much more aware of what you’re trying to do), to commit to someone elses beliefs or actions that have not taken place in an attempt to smear them or their beliefs.
I don’t play that game, no matter how much you’d like to. I do not paint with a broad brush. I deal in actions, facts, and when it is called for, analysis and opinion. That’s it.
The sooner you understand that and stop trying to wordsmith me into something I do not believe and you aren’t going to get, the better off you’re going to be.
Not So Casual Observer
September 19th, 2011
5:24 pm
I need to understand something…
Social Security and Medicare are essentially insolvent. So the Libs think reducing the amount of those taxes assessed and collected will help solve this insolvency problem how?
Would that be by creating jobs? Libs think temporarily reducing the P/R tax will create create permanent jobs? So why not, you intelligent Liberals, simply go to the end of the rainbow and bring some of the gold back to take up the slack?
The problem behind the “hording of cash”, as you Liberals see business doing, is the unknown future of government meddling in the economy. Regulations produced at a rate exceeding any previous administration, a constant cry of “increase taxes” and out of control government spending are simply three of the problems that are lumped into one by business – a government without leadership.
John
September 19th, 2011
5:24 pm
Dusty
That’s a new one…collecting taxes is now “stealing” money?
Medicare may be expensive but it’s much cheaper than private insurance. But then again, you’re probably one of those Republicans that believe we should let anyone without health insurance die. Oh wait, Ron Paul had the solution…the Churches are going to pay for it. Think I’ll send my health related bills to my Church and see if they’ll pay them off.
Tiberius - Your lightning rod of hate!
September 19th, 2011
5:26 pm
“Obama 2012: Elect him. NOW!!”
Uh, joe?
That is Constitutionally impossible. We cannot “Elect him now”, as we are mandated to elect a President every 4 years, and that doesn’t occur again until November of NEXT year.
How about a little less cheer leading and more substance, OK?
John
September 19th, 2011
5:28 pm
Tiberius – Your lightning rod of hate!
“I deal in actions, facts, and when it is called for, analysis and opinion. That’s it.”
When I cited fact and analysis, you disregarded it. I asked several times for you to cite facts and analysis to back your claim, you ignored every request.
Not So Casual Observer
September 19th, 2011
5:30 pm
Dusty,
One thing ObamaCare does is raise the cost of Medicare to retirees from $96 in 2010 to $246 in 2013 – a 150% increase with the last $100 scheduled after the 2012 election. What a devious bum this Obama is!
That is just one of many hidden costs to the consumers in the ObamaCare Bill. If you think healthcare is expensive now, just wait until the full effects of this abomination of a “reform” bill are felt.
Does anyone think the “Jobs Proposal” by B.H. Obama will be any different?
Dusty
September 19th, 2011
5:30 pm
joe,
At least you are honest. But…proper leadership? Obama? Whooeee! I think you will find some disagreement with your opinion, to say the least.
I Report (-: You Whine )-: Thee Magnificent!!! mmm, mmmm, mmmmm! Just sayin...
September 19th, 2011
5:30 pm
Dusty- obozo just lavished upon al Qeada in Libya a fat stockpile of anti aircraft missiles which I’m sure that the ragheads are now scheming ways to get them across the Mexican border so they can shoot down a couple of juicy American airplanes full of people, have you heard any concerns over this coming from the White House? You think they’ll clamp down on the border?
We have met the enemy and he is…..obozo.