President Obama Spoke in the Rose Garden
Politics / US Politics Sep 13, 2011 - 05:12 AM GMTBy: George_Maniere
In a speech in the White House Rose Garden Monday morning, that I’m sure he hoped no one was watching, President Barack Obama said he would pay for his $447 billion jobs plan by ending a series of tax breaks for oil and gas companies, hedge-fund managers and people making more than $200,000. In total, this plan would end about $467 billion of tax breaks over 10 years.
The president has previously proposed ending the tax breaks, but has faced stiff resistance from Republicans. By choosing to end the tax breaks, the White House is likely setting itself up for a fight with Republicans. Over the summer, Republicans said they wouldn't end tax breaks amid concerns doing so as the U.S. is coming out of a recession would hamper the recovery.
I believe it would be fair to say this tax increase on job creators is the kind of proposal both parties have opposed in the past. The President went on to say that we remain eager to work together on ways to support job growth, but if I may be so bold he did not point out that this proposal doesn't appear to have been offered in that bipartisan spirit.
The President disputed the notion that raising taxes on the wealthy would hurt growth. He went on to say that the measures to pay for spending were spread out so that there would not have negative impacts. He is also taking a gamble that Republicans are willing to budge on taxes after getting bruised, politically, over a tough budget fight in the summer. He said that he thought most Americans would easily end tax breaks for oil and gas companies and hedge-fund managers to spur growth.
I believe that is not a hard choice for most Americans to make if the choice is creating economic growth and jobs. Whether that is the outcome remains to be seen.
President Obama said he would be sending his jobs plan, including details of how it will be paid for, to Congress later Monday. Mr. Obama urged Congress to pass the package. The President said "This is the bill that Congress needs to pass—no games, no politics and no delays."
The following is a list of tax breaks that will be ended or limited to pay for the jobs bill, according to the White House:
- Limit on itemized deductions ($200,000 individuals, $250,000 families).
- Carried interest would be treated as "ordinary income" rather than at capital-gains rate.
- Oil- and gas-company tax breaks.
- Corporate-jet depreciation would change.
In conclusion President Obama will still need to gain bipartisan support to pass the measure, though he tried to include concessions from both parties to make the plan more agreeable.
By George Maniere
http://investingadvicebygeorge.blogspot.com/
In 2004, after retiring from a very successful building career, I became determined to learn all I could about the stock market. In 2009, I knew the market was seriously oversold and committed a serious amount of capital to the market. Needless to say things went quite nicely but I always remebered 2 important things. Hubris equals failure and the market can remain illogical longer than you can remain solvent. Please post all comments and questions. Please feel free to email me at maniereg@gmail.com. I will respond.
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