A Trillion Dollars & 19 Months Later… Obama Proposes Tax Cuts for Business
Posted by Jim Hoft on Tuesday, September 7, 2010, 6:08 AM
Gee… That only took 19 months and a trillion dollars.
Obama now wants tax cuts for business.
Hooray.
Obama is the worst jobs president since the Great Depression. The Obama-Pelosi economic plan resulted in a cumulative 7.5 million jobs deficit. By every objective measure the democrat’s Trillion dollar stimulus bomb was a complete disaster.
Barack Obama and Nancy Pelosi tripled the national deficit last year by nearly a trillion dollars – something unheard of in our nation’s history.
After an unheard of record deficit last year of $1.4 Trillion the economy is on track to experience a $1.3 Trillion deficit this year.
Instead of focusing on the economy the past two years the radicals in Washington beat up on business and rammed through an unpopular nationalized health care entitlement program.
After all of the failure Obama now wants tax cuts.
FOX News reported:
President Obama, in one of his most dramatic gestures to business, will propose that companies be allowed to write off 100 percent of their new investment in plant and equipment through 2011, a plan that White House economists say would cut business taxes by nearly $200 billion over two years.
The proposal, to be laid out Wednesday in a speech in Cleveland, tops a raft of announcements, from a proposed expansion of the research and experimentation tax credit to $50 billion in additional spending on roads, railways and runways. But unlike those two ideas, both familiar from Obama’s 2008 campaign, the investment incentive would embrace a long-held wish by conservative economists that had never won support from either Republican or Democratic administrations.
“Temporary investment incentives like this can have big effects because they really pull investment forward,” R. Glenn Hubbard, dean of the Columbia University School of Business and a former chairman of the Council of Economic Advisers under President George W. Bush. “This could have a big stimulative effect.”
But the response Monday from business lobbyists hinted at uncertain political prospects for the idea: Many said a higher priority for their members remains extension of the Bush income-tax rates for higher earners that are set to expire at the end of 2010. Obama and many congressional Democrats want to let those breaks expire.
Administration officials hope businesses spooked by the faltering recovery but with investments already on the drawing board will rush to take advantage of the tax break. The tax would be retroactive to Sept. 8, the day it is announced, so businesses won’t delay planned investments while waiting for congressional action.
This is what you call desperation.
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Chippy commented:
Blah, blah, blah! This president, all he talks about is unions. This 50 billion dollar stimulus is a pension bailout for the unions.
FreakyBoy commented:
How stupid are these people?
Allowing the Bush tax cuts to expire will only offset the economic benefits of Obama’s proposed business tax cuts.
Zero sum baby.
bill-tb commented:
Yep, but it is consumers that make the economy go round. And they need jobs, and that needs demand …
What Obama knows about free market economy, you could write on a Kenyan pinhead.
antilbr commented:
STUPID is as STUPID does….Can we start impeachment hearings already….This IDIOT could’nt run a lemonade stand in the middle of the Sahara desert…MORON……
squeaky commented:
and market watch predicted stimulus fraud could be 50 billion just 15 months ago. ripe for the wolves in society who know the chances of being caught are probably nill. now the next round covers 6 years – stretch it out long enough and bet that the dupes forget the gist and accept the re-write.
http://www.marketwatch.com/story/stimulus-fraud-could-hit-50-billion
chuck in st paul commented:
A short term fart into the hurricane of negatives.
It’s not about accelerated tax write-offs! It’s the cost of labor and the HUGE tax bite coming in January. Add to that fears of a carbon tax and a VAT which will destroy consumer demand through skyrocketing prices, and what business would be foolish enough to invest in new plant and equipment??!!?? To put the icing on the cake, there’s Barry’s push to switch us from cheap easy to produce energy supplies into unicorn farts, dilithium crystals, and perpetual motion machines which is going to cause severe shortages of supply and skyrocketing energy costs which will also add to prices of goods and services.
The 52% still don’t get the picture. They are mildly annoyed that Utopia has been put on hold while they consider that Barry might have oversold it, or… quelle surprise! He might have lied..!!!!eleventy!!
Get out and vote in NO!-vember. This has got to stop!
Agent 99 commented:
HMmmm!!! My post went ‘zip’
This is TEMPORARY and two…it’s a Tax Credit!! As someone on Yahoo noted “Right! CREDITS?…No Tax Cuts. Well. I’ll start saving BHO “”CREDITS”" for his reelection in 2020/Sarc….
Agent 99 commented:
JIM!! DESPERATION!! Exactly!!! ((In the meantime..just NOW saw this)) In just 120 days, the largest tax hikes in the history of America will take effect. They will hit families and small businesses in three great waves on January 1, 2011:
First Wave: Expiration of 2001 and 2003 Tax Relief
In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. These will all expire on January 1, 2011:
Personal income tax rates will rise. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed). The lowest rate will rise from 10 to 15 percent. All the rates in between will also rise. Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates. The full list of marginal rate hikes is below:
- The 10% bracket rises to an expanded 15%
- The 25% bracket rises to 28%
- The 28% bracket rises to 31%
- The 33% bracket rises to 36%
- The 35% bracket rises to 39.6%
Ginger commented:
What the fraud/Kenyan is doing has been planned for years. Every thing he does is to take down our country. His plan is to make America a Muslim country. Our country is loaded with natural resources that the Muslims want.
Hey you union WORKERS how long do you think that the Kenyan fraud is going to keep bailing you out? How many of you are “Whiteys?” GET IT THROUGH YOUR GREEDY THICK HEADS… YOU ARE JUST PAWNS TO THAT FRAUD! Sorry for shouting but someone has to start waking the union people up. THEY ARE JUST BEING USED. The union leaders are the only ones that are really benefiting with their big salaries! You a you shoud take a bigger look at their books and you would most likely NOT like how they are really spending your money.
hermie commented:
Except the ‘tax cuts’ will have so many conditions (such as specific ‘green’ or ‘sustainable’ requirements, or union labor requirements) that manufacturers will have to spend much more and go through far more red tape than they would have constructing a regular facility. But Obama will claim that he offered a ‘tax cut’ but ‘greedy corporations’ refused them.
Multitude commented:
Actually, the write-off for R&D may be useful… in assisting companies in R&D of further automation investments which will allow for even lower levels of domestic employment.
What a surprise, coming from a community agitator and a bunch of career government types who’ve never spent a day in a real business.
Palinfan commented:
Those of us on the right who are paying attention are not fooled by this sudden reversal in policy by Obama – it’s plain to see he’s flailing as election time bears down. However, I can’t imagine that anyone watching him carefully from the left will be pleased either. They absolutely hate the idea of tax cuts. This should be interesting.
KR commented:
Agent 99 #8,
The full list of marginal rate hikes is below:
- The 10% bracket rises to an expanded 15%
- The 25% bracket rises to 28%
- The 28% bracket rises to 31%
- The 33% bracket rises to 36%
- The 35% bracket rises to 39.6%
———————
If this is accurate, then the Bush Tax Cuts gave the lowest bracket the largest percentage of a tax break. So much for the false claim that it just benefited the rich.
And now with the Bush tax cuts ending the lower earners will have their tax increase by 50%, compared to only 3-4.6% for the other brackets.
JerryT commented:
hermie
September 7th, 2010 | 7:13 am | #10
“Except the ‘tax cuts’ will have so many conditions…”
—- You hit the nail on the head! Add to that, they will screw business and us, in some other way. Gov’t never gives credit or allows cuts without picking it up somewhere else.
Joanne commented:
Election time – better govern closer to the center. It isn’t believed that this next 350 billion dollar stimulus is going to pass before the November elections, which gives the democrats ample time to push BS and never ever intend to implement it. Obama lied before the last election to win, and he hasn’t stopped yet.
averagemelon commented:
#10
So Astute!
All of us must remember: EVERYTHING THAT COMES OUT OF THE PRESIDENT’S MOUTH IS A LIE. Start from this fact and plan ahead. This country is going to economically collapse on January 1. 2011.
kato commented:
Leftist administration demonstrates yet again that it doesn’t understand the dynamics of a vibrant free-market economy.
After legislating the most onerous regulatory regime since war rationing during World War II, and having not written any of the rules, business remains paralyzed in this country.
Who is going to build, who is going to hire in the face of such uncertainty?
The Obama Politburo is building billions of dollars of bridges to nowhere, creating some jobs now but saddling the future with colossal liabilities. A recipe for disaster, but standard operating procedure for leftists. Uncle Joe is in hell, smiling.
Agent 99 commented:
SORRY!! Here is the rest FROM ‘me’ @ # 8
Higher taxes on marriage and family. The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of income. The child tax credit will be cut in half from $1000 to $500 per child. The standard deduction will no longer be doubled for married couples relative to the single level. The dependent care tax credit will be cut.
The return of the Death Tax. This year, there is no death tax. For those dying on or after January 1 2011, there is a 55 percent top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.
Higher tax rates on savers and investors. The top capital gains tax will rise from 15 percent this year to 20 percent in 2011. The top dividends tax rate will rise from 15 percent this year to 39.6 percent in 2011. These rates will rise another 3.8 percent in 2013.
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