Given all the other news today, there will be little coverage of president Obama's threat to undermine the bipartisan tax deal that was about to be passed in Congress. The deal was negotiated by Democrat senator Harry Reid and Republican representative Dave Camp. As majority leader of the senate (for another few weeks at least), Reid well knows what can be passed through the Senate. Camp is the chair of the House committee in charge of taxation and he too has the clout to make a final deal. There have been efforts all year to negotiate a compromise deal between the Republicans and the Democrats and a deal had finally been reached. Then, at the last minute, Obama stepped in and threatened to veto the bipartisan compromise. In typical Obama fashion, he left the negotiations to Congress and then got involved only to undermine any forward progress.
The tax deal covers all sorts of provisions in the tax code that either expired at the end of 2013 or will expire at the end of this year. Perhaps the most important of these provisions for the economy are the rules which allow accelerated depreciation for new investments and a tax credit given to businesses for research and development. The dollars involved are roughly a bit more than half of the total included in the bipartisan deal. Allowing accelerated depreciation for new investments makes it less expensive for companies to set up new ventures, new equipment, new buildings, and all sorts of other items that result in economic growth, new jobs and higher wages for America's workers. The credit for research and development promotes the discovery of new inventions, new products, new production methods and other sorts of advancements that help give American companies a competitive edge over foreign competition. Again, this means higher economic growth, new jobs and higher wages for America's workers. Both Democrats and Republicans recognized that these measures are needed to help the economy. This is what Obama opposes and threatens to veto.
Obama's stated reason for opposition is that the bill gives breaks to business but not to the middle class. First of all, Obama obviously does not understand the impact of taxes on America. Helping the economy helps everyone including the middle class. Indeed, one of the main reasons why the average middle class family has seen its income fall during Obama's presidency is that Obama has put so many additional burdens on business that economic growth has been slowed and stagnant. Second, Obama is just wrong in his description of the bipartisan bill. The agreement includes an extension of the tax credit given to families paying for college. The bill also includes a new provision allowing special tax benefits to disabled Americans. It extends a batch of other middle class tax benefits as well.
The real truth is that Obama wants to be able to announce that he is fighting against business interests and for the middle class. He knows that few people will ever hear the truth about what he is actually doing. Obama is, once again, counting on what he believes to be the "stupidity" of the American voter. He figures that what he says is more important than the truth. In fact, Obama believes that he can take steps that actually undermine the middle class while claiming to fight for them and get away with the fraud.
I used to think that the president of the USA had the best interests of the country at heart. Oh, sure, many times I disagreed with the analysis of the White House occupant, but I took it on faith that the president was sincere in his belief that he was doing what was good for America. After watching Obama for years, I no longer have that expectation. Clearly, Obama has only his own interests in mind.
The tax deal covers all sorts of provisions in the tax code that either expired at the end of 2013 or will expire at the end of this year. Perhaps the most important of these provisions for the economy are the rules which allow accelerated depreciation for new investments and a tax credit given to businesses for research and development. The dollars involved are roughly a bit more than half of the total included in the bipartisan deal. Allowing accelerated depreciation for new investments makes it less expensive for companies to set up new ventures, new equipment, new buildings, and all sorts of other items that result in economic growth, new jobs and higher wages for America's workers. The credit for research and development promotes the discovery of new inventions, new products, new production methods and other sorts of advancements that help give American companies a competitive edge over foreign competition. Again, this means higher economic growth, new jobs and higher wages for America's workers. Both Democrats and Republicans recognized that these measures are needed to help the economy. This is what Obama opposes and threatens to veto.
Obama's stated reason for opposition is that the bill gives breaks to business but not to the middle class. First of all, Obama obviously does not understand the impact of taxes on America. Helping the economy helps everyone including the middle class. Indeed, one of the main reasons why the average middle class family has seen its income fall during Obama's presidency is that Obama has put so many additional burdens on business that economic growth has been slowed and stagnant. Second, Obama is just wrong in his description of the bipartisan bill. The agreement includes an extension of the tax credit given to families paying for college. The bill also includes a new provision allowing special tax benefits to disabled Americans. It extends a batch of other middle class tax benefits as well.
The real truth is that Obama wants to be able to announce that he is fighting against business interests and for the middle class. He knows that few people will ever hear the truth about what he is actually doing. Obama is, once again, counting on what he believes to be the "stupidity" of the American voter. He figures that what he says is more important than the truth. In fact, Obama believes that he can take steps that actually undermine the middle class while claiming to fight for them and get away with the fraud.
I used to think that the president of the USA had the best interests of the country at heart. Oh, sure, many times I disagreed with the analysis of the White House occupant, but I took it on faith that the president was sincere in his belief that he was doing what was good for America. After watching Obama for years, I no longer have that expectation. Clearly, Obama has only his own interests in mind.
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