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Obama Offers Tax Cut (That Raises $50B In Taxes)

From the New York Times:

Obama Proposes Deal Over Taxes and Jobs


CHATTANOOGA, Tenn. — President Obama came to a cavernous Amazon distribution center here Tuesday and backed a cut in corporate tax rates in return for a pledge from Republicans to invest in more programs to generate middle-class jobs…

With a sea of cardboard boxes serving as a backdrop, Mr. Obama described a “grand bargain” for the middle class that he said would stimulate the economy while giving businesses the lower tax rates they have long sought.

“If folks in Washington really want a ‘grand bargain,’ how about a grand bargain for middle-class jobs?” Mr. Obama told a crowd of 2,000. “If we’re going to give businesses a better deal,” he added, “we’re going to give workers a better deal, too.”

It was the president’s first concrete proposal in an economic offensive that he inaugurated last week in Illinois to set his terms for coming budget battles with the Republican-controlled House.

But only the packaging was new. The president essentially cobbled together two existing initiatives that have been stalled in Congress: corporate tax changes and his plan to create jobs through education, training, and public works projects.

Mr. Obama outlined the terms of his tax plan in early 2012 during the presidential election, when he said the corporate tax rate would be reduced to 28 percent, from 35 percent, with a lower rate of 25 percent for manufacturing firms.

While the president presented the proposal as a concession, Republicans dismissed it more acidly than usual. “It’s the opposite of a concession,” said Brendan Buck, a spokesman for Speaker John A. Boehner of Ohio.

This is the pattern with Obama. Everything he claims is usually the opposite of reality.

In the Republicans’ view, Mr. Obama’s offer was less of a “grand bargain” than an effort to extract a new fiscal stimulus program with money from a corporate tax cut that would end up, for accounting reasons, initially generating billions of dollars of revenue for the government.

In other words, Obama is calling a tax increase of $50 billion dollars on business a tax cut. He is calling his latest push for another round of stimulus a new "grand bargain."

Administration officials said that the proposal, like past tax overhauls, would raise additional revenue on a one-time basis that could offset new spending. That money, the officials said, could be used to finance the investment in jobs.

The revenue would result from the transition to a revised code — for example, as companies paid a one-time fee on profits they earned overseas but did not bring home because they did not make them subject to American tax rates…

Don’t worry. A way will be found to turn this ‘one-time’ tax hike into a yearly revenue stream. For instance, they could jack up the ‘minimum foreign tax’ until it nets $50 billion a year.

Even the White House’s rollout of Mr. Obama’s proposal in Chattanooga became an excuse for finger-pointing. White House officials said they briefed Democratic and Republican lawmakers on Monday evening and tried to reach out to Mr. Boehner’s aides. But Mr. Buck said the Republican leadership learned of the initiative from the news media

Which just shows how serious Obama is about the whole thing of ‘reaching out.’

The choice of Amazon was meant to illustrate Mr. Obama’s theme of a job revival in America. The company recently announced plans to hire 5,000 more workers at 17 fulfillment centers, where it packs and ships customer orders. But the White House came under fire because many Amazon jobs pay only $11 an hour, and the pace of the work in these warehouses has been described as exhausting…

And never mind that the DC City Council and other Democrats across the country are trying to make it illegal for companies like Amazon to pay less than $12.50 an hour.

This article was posted by Steve on Wednesday, July 31st, 2013. Comments are currently closed.

4 Responses to “Obama Offers Tax Cut (That Raises $50B In Taxes)”

  1. David says:

    What’s to worry? It is a “one time tax”. Just like that “one time” phone excise tax imposed to fund the Spanish-American war in 1898. It’s not like that is STILL coming out of our cell phone bills!

  2. Rusty Shackleford says:

    Barry “The Bug” Obama: Hey…youse ain’t been payin’ yaw fair share. I sees you gots a nice house. Shame if sumpin’ wuz ta happin’ to it, if you get my drift. Nice fambily, too. Hey….Harry….Joe….lookit diss pitcha of da nice fambily dis guy’s got heah.

    Harry: Very nice….cute little woman…and da kids….and awww….lookit dat pooch.

    Joe: What pitcha? What dawg? I don’t see nuittin’

    Barry “The Bug” Obama: Yeah…youse just keep sayin’ dat ya mook. Jeez….why do I awways git stuck wid da stoopit mooks?

    Anyhow….youse gotta pay, see? Udderwize, me n’ Joe an’ Harry heah can’t be….uh….responsible for stuff dat might happins…ya know? Like…if a big accident was to occur, sudden-like and your cute doggie or one o’ yer kidz wuz to…oh…come up missin’ or somehow all busted up…ya know?

    So….pay up.

  3. GetBackJack says:

    This is clearly a version of the old saw, “Don’t piss down my neck and tell me it’s raining”

  4. bousquem25 says:

    I would be all for increased tax revenues if it meant that the economy was healthy and growing again with the increased revenues coming from increased business profits and alot more business existing. As it is Barry is just trying to score political points with his base and the media while making the problem worse. Of course all his crony corporate buddies will find exemptions for their taxes and tax shelters while leaving the taxpayer holding the bag. Barry and the clowns already have the money spent in their minds and what their next revenue source idea will be. The money will be spent in vote buying schemes for union jobs and crony capitalism deals.

    The only “grand bargin” is with himself, he has decided he is only pushing for this much instead of some larger amount that will be pissed away on some political pork barrel project. I also wonder if “reaching out” to republicans meant some staffer tried to call one republican and after 3 rings on the phone hung up and said that they had reached out.

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