President Obama demanded on Monday that Congress pay for his $447 billion jobs bill with higher taxes on the rich and businesses.
The tax proposals, which have all previously been advocated by Obama, underline the White House’s political agenda for the fall, which increasingly is focused on setting up congressional Republicans as foils on the economy during the 2012 presidential race.
Few, if any, of the proposed tax hikes have any chance of being approved by the Republican-held House, but they all could help the White House frame the GOP as protecting Wall Street money mangers and corporate interests at the expense of the middle class.
At the same time, the attacks on the rich open Obama up to new charges of class warfare, not only from Congress, but from the Republicans campaigning to replace him.
“The president is asking Congress to make choices,” White House press secretary Jay Carney said at his briefing, where Office of Management and Budget Director Jack Lew laid out $467 billion in higher taxes.
Obama did not mention any of the tax hikes in his own appearance Monday at the Rose Garden, where he implored Congress to approve the jobs bill he presented last week.
“This is a bill that will put people back to work all across the country,” Obama said, holding up the bill while surrounded by teachers, construction workers and first responders he said would be helped by it.
“This is the bill that will help our economy in a moment of national crisis,” he continued. “No games. No politics. No delays. I’m sending this bill to Congress today, and they ought to pass it immediately.”
The chief provision announced by Lew would limit itemized deductions for individuals who make more than $200,000 a year and families that make more than $250,000. Lew said the proposal, previously included in White House budget proposals, would raise about $400 billion, a higher estimate than the administration has previously offered for the provision.
The White House also targeted hedge fund managers, owners of corporate jets and oil and gas companies for higher taxes.
All have previously been targeted for higher taxes by the White House, but many of the provisions will be difficult to move in Congress.
For example, Obama would tax the income investment fund managers make, known as “carried interest,” as regular income instead of as capital gains.
But not all Democrats are on the same page on whether to scrap the carried interest exemption, which allows hedge fund managers and private equity investors to be taxed at a 15 percent rate even if they make millions for this income.
Some in the party have argued that the exemption needs to be ended as a simple matter of fairness. But Reps. Jared Polis (D-Colo.) and Mike Quigley (D-Ill.) have argued that getting rid of the exemption would hurt the real estate market and other parts of the economy, not to mention stifle entrepreneurship.
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.
4 Responses
TAX AND SPEND obama is at it again Class warfare
RICH is earning $125,000 a year (married couple “cut off” for rich is $250,000, so divide that by two). At that level, a family of four qualifies for need-based financial aid at private university. When Obama talks about “millionaires” and “billionaires” it is apparent he is ignoring the decimal point (just like many shuls, where an offer of 100 for an aliya means $10 – we should feel sooo flattered).
Obama and his team just can’t change their social philosophy
Class warfare here we go again… or is it still?!
If you tax the people making money they will have less money to hire people. This is simple! So in english, he wants the “rich” people to pay more in taxes so they could get a tax break for hiring new workers whom they would then have to pay into ObamaDoesntCare because they have the workers. So if we cut everything out, there is NO tax incentive to hire anyone because it will cost them more.
How could anyone think this guy is smart and intelligent? He is a walking tipish.