In his press conference this morning - the first since the election - Obama said that the Bush tax cuts will not be extended for the wealthiest 2%.
Sounding confident and fired up, the president framed the plan as a tax cut for everyone: "Every american including the wealthiest get a tax cut" on the first $250,000 of their income. And, he added, "97% will see their taxes not go up by a single dime."
In other words, the president is sticking with his original plan to end the Bush tax cuts for households earning more than $250,000, part of his proposed resolution to the fiscal cliff looming in 2013.
In a strategic sleight of hand, Obama claimed bipartisan support for the deal. Congress should "at least do what we all agree on," he said, and "keep middle class taxes lowered."
And he made his proposed tax-extension sound like a no-brainer: "we could get that done by next week," and "give folks some certainty before holiday season." He added, "we should not hold the middle class hostage while we debate giving tax cuts to the wealthy."
He repeatedly said that he's open to new ideas "from all sides" on raising revenue. But he ridiculed "vague" approaches like "dynamic scoring" and unspecified "loophole closing" - by implication, approaches that Republicans are liable to offer.
I don't understand the resistance. Let me put it like this, what percentage of your income do you (common person) put up for a new car? How much is added for having to borrow the money?? Now, wonder what percentage of the 2 percenters income is that car - or at least their more expensive car. Of a 15% flat income tax rate, which would it place the most burden on. And the income tax just taxes income not net worth.
I fully support his plan. But there needs to be a resolve SOON, the markets are taking large hits due to uncertainty from the Republican side. If Republicans can accept that one tax increase, I'm sure there will be comprehensive reform from both sides regarding both taxes and spending cuts.
I noticed that some European countries found out he hard way that over taxation to the point of doing away with personal household disposable income is the worst thing to a recovery. Everyone can say what they will but the recovery and stimulation comes from the populace spending money it has over and above the necessities of surviving. There has been no recovery yet demonstrated that has been initiated solely by the government or by the wealthy. We, the people. We have the Power. That's regardless of what politicians or officials want us to think. I also think that's what scares them. Truly unfortunate that WE haven't realized it yet either.
@Rocker Europe is different that the United States. http://www.ecb.int/pub/pdf/scpwps/ecbwp1174.p... The US can raise tax revenues by increasing personal income tax by 30% and capital gains by 6% and we're still raising revenues. Denmark and Sweden on the other hand are on the wrong side of the Laffer Curve and could increase their revenues by lowering their taxes.
@CommonSense - I have a bit of a problem with the 2010 report (summary below) The reference to “Neoclassical” data and conditions… This, owing to the speed at which information and its transference globally impacts across countries that has increased in recent decades. Preprogrammed response needs to be reexamined for effectiveness if you find yourself with variables of ‘new ground’ not encountered before. Not counting the numbers, the speed, interaction, and scope variables disqualifies the 1929 Depression data.
The study did not take into consideration low or rising workforce unemployment i.e Greece, Spain, and Ireland while their economic indicators pulled back after the 2010 report. The raising of the taxation for these countries outpaced the government service and cost cutting programs which should have happened first (theoretically), or at least in tandem. Neoclassical data would not reflect a high unemployment rate in recent terms nor be accurate using the numbers of the Great Depression.
Other than that, from the summary below, I get that this report states that US taxes can be raised on top of what we have already. For many lower and middle class households, these levels would indeed begin to choke disposable income that allows non-essential spending economics. Pull back of that available income and we could possibly see a return to the recessed conditions. Further unemployment will increase the situation. The tax cuts mentioned for the general population tends to keep the disposable income in play. In the report excerpt the sentence 4th from the bottom mentions a ‘steady state’. We are not in a ‘steady state’ but certainly more steady than some. The trick will be to remain that way by: first - federal government programs reduction, second – streamlining the programs for efficiency, third – creating more income base by the choice of illegals path to citizenship and hence official income taxation (on refusal, deportation and enforcement of the entry rules), and fourth – flat income tax program overhaul (without the loopholes) meaning a raise for some. At best, we’re still looking at a 10 year transformation regardless how fast everyone would like to get out of this mess.
That’s my unofficial opinion, BUT, Good debate however, my thanks. My statement still stands – no government, nor the wealthy, has ever raised a country from a recession or depression . Returning to work and paying taxes - Power to the Population.
<C/P excerpt> According to the model the US and the EU-14 area are located on the left side of their Laﬀer curves. However the EU-14 countries are much closer to the slippery slopes than the US. More precisely, we ﬁnd that the US can increase tax revenues by 30% by raising labor taxes but only 6% by raising capital income taxes, while the same numbers for EU-14 are 8% and 1% respectively.,,,,, In addition, our results indicate that tax cuts in the EU-14 area are self-ﬁnancing to a much higher degree compared to the US. We ﬁnd that for the US model 32% of a labor tax cut and 51% of a capital tax cut are self-ﬁnancing in the steady state. In the EU-14 economy 54% of a labor tax cut and 79% of a capital tax cut are self-ﬁnancing. We therefore conclude that there rarely is a free lunch due to tax cuts. However, a substantial fraction of the lunch will be paid for by the eﬃciency gains in the economy due to tax cuts.
This congress has demonstrated for the past four years they aren't willing to work with POTUS. He sat on his thumbs for four years trying not to annoy them. BAD MOVE!! I think he finally "gets" it. The only way to work with this congress is to kick some serious booty!!
@normanbites ...Excuse me? What happened the first 2 years when he had the house and senate? Ah, yes...behind closed doors developing the budget busting Obamacare. Oh, that's right. They didn't develop a budget either.
@ACTSmom Yeah, well that's why I'm not pleased with him as well. But putting a genuine Robber Baron CEO in control of the nation did not look like a good solution either. I would have much preferred Elizabeth Warren as POTUS. But that's not how our system works. The way it works, the wealthy use campaign donations to give us the choice between "Bad" and "Worse". I hate doing it, but I did pick "Bad" over "Worse".
@DARSB Actually I want the Congress not to act on anything until after 12/31. I'll gladly pay the taxes I paid under Clinton's admin if all the cuts go into effect. I'll gladly fall off of that fiscal cliff they are all talking about as I think it will be the best thing that could happen.
Tax the rich - You betcha! The gap between the uber-rich and the rest of us has never been greater. The Bush tax cuts for the rich obviously haven't worked or we would have seen the jobs. After 10 years it is time to say enough. Keeping the tax cuts for the poor and middle classes makes sense because they will spend this money and pump it directly back into the economy. The majority of Americans support this and Obama should call the GOP's bluff. Let them vote on a bill to keep the cuts for the bottom 98% of us.
@Canoochee I'm in favor of a progressive income tax that taxes those who can afford it at higher rate than those who can't. Me and about 65% of Americans. And we are going to get it this time. I told you two weeks before the election that Obama would win and I'm telling you now that tax rates on the highest 2% are going up. Bank on it.
Tax the wealthy,(business's). How will that impact those business's? It wont. The added cost will be passed onto everyone else, the consumer. All part of the Muslims master plan to destroy the country from within. Way to go libs, keep attacking what's left of the economy. Pretty soon even Greece will be laughing at us. Maybe Barry should take the day off and play some more golf so the adults can try and correct the socialistic empire that's being forced upon a supposedly free country and its people. THE WELFARE STATE CAN NOT BE SUSTAINED!!! Barry and his supporters need to go and take an Economics 101 class. This time without the drugs and alcohol.
First, wealthy individuals are not businesses. Second, 97% of business owners don't earn anywhere close to $250k, the average makes about $60k. Third, a personal income tax hike isn't a 'cost' that can be passed to consumers. They can raise prices by the same percentage to try and gain more profit, but it will be at the cost of losing customers. Given that businesses strive to operate at a price that maximizes profit, raising that price would no longer maximize that profit and would be counterproductive to their end goal of maximizing profit. If they can raise prices AND raise profits they were not an optimal business in the first place.
@OpEn_MiNdEd Its called reality. Maybe one day you can stay away from the KoolAid and realize it. Just because you support the destruction of the country doesn't mean you'll be praised for your loyalty when this country gets totally destroyed. You'll still be wondering where you freebie entitled life is once everything has collapsed and then you will realize that you've been wrong.
retired too, I have an accountant named " Irving" since '82. I was self employed. The way he set up my retirement an investments has proven to be pure genius One IRS audit survived it everything approved
@martydotcom I was self employed. Survived many audits. There is something wrong with only half the people paying income tax. Unfortunately included in that "half the people" is most the ultra rich. Rupert Murdoch not only paid no income tax, he got back nearly a million dollars. That's simply wrong.
So the 219 Representatives that have signed a pledge to not raise taxes are faced with either breaking their pledge or being villified. Here's a list of the reps that Obama wants to break their pledge. Let's see who of them are strong enough to hold to their credibility.
@Denizen_Kate - consider a world where it is OK to break your pledge. Consider the pledges made to you (salary, insurance, investments, etc...). Consider the calamity caused by the failure of people holding to their pledges that ushered in this latest depression. If these elected officials break their word on this pledge, what's next? For the unprincipled, this pledge might be easily done away with through rationalizing. Even so, whether they cave or prevail, their reelection chances have ceertainly been weakened.
He didn't budge in the last four years, I hardly think he'll start now...not budging is not compromising, I thought he said he wanted compromise. The top 2% can afford a higher tax, but tax them too much and they'll leave and and take the jobs with them...
Because a few extra % points tax on money that doesn't get spent in the economy will make the economy come to a screeching halt? Care to elaborate? Why didn't it happen in the 50's when the top rate was 90%, or in 1996 when it was almost 40%? Could it possibly be that money not being spent in the economy has almost no effect on the health of the overall economy? Could it be that when the govt has incentives for a business owner to not take a HUGE salary and instead find ways to invest it into the economy that the overall economy grows? I know, lots to process, take your time and maybe an econ class.
I am amazed at the lack of critical thinking by the masses. Obama puts everything he does into action on unproven theory. Take the 90 Billion wasted on ":green" energy. Food for thought, real thought.....what happens when, as it must, the tax revenues from the rich are not enough to cover the programs and take down the budget. This is simple math people. Face it. We will ALL be taxed. Read Obamacare. Most of you have no clue. in 2013, many taxes will fall into place. This is the classic frog in the water scenario, start off cold and soon you will not know the water is boiling. Eliminate loopholes, yes, because that causes ALL business's to pay more tax. The best solution is for the 47% not paying any taxes to pay SOME. Again, do the Math. 100,000,000 paying $100 -$1000 each in taxes. THAT is a solution.
I pay 99.00 a month for insurance through SS. In 2014 the rate i will pay will be 247.00 a month & my income will be less than what i get now. Where is this crap comming from ?? A certian potus's administration that is in office now
I say give it to him. Just the other day my grandaughter wanted a bite of my pickle. She is picky as it is. I said no,,and she thought for sure it would be delish...so I let her have a bite. She spit is out right away and looked at me like I did something bad. I say let him have his way. Anyone with half a brain knows it won't make a dent in the debt or economy, and may actually cause more damage. So give the brat what he thinks he wants.