With the nation’s economy still having a dismal performance and with barely 5 weeks left before the midterm elections, Obama is trying to come to the aid of his Democratic party in order to avoid any major losses in November. Recent polls show that GOP candidates are either leading or are in a tightly contested race against their Democratic rivals. The president is devising a newer strategy that aims to rekindle the same 2008 campaign magic that propelled him into the presidency. It also aims to give him the opportunity to thoroughly explain his policies and regulation into the public in a calm and orderly manner.
The biggest fear for Democrats this November is when their avid young supporters are just going to stay at home rather than vote. The two-step strategy will involve four states which aim to urge Democrat supporters to let their voices be heard and participate in the polls. Pres. Obama and his team will also try to persuade voters who are yet to decide on who to support on that the proposed alternatives by Republicans are unacceptable and will do no good for the nation. It was remembered that the President warned Democrats and their supporters that all will be lost such as the Obamacare, stimulus, etc. if Republicans take back control of Congress.
In a recent interview, Obama told Democratic voters that it would be “inexcusable” and “irresponsible” for unenthusiastic Democrats to skip the midterm elections because the consequences are so severe that it would erase the years-worth national agenda. On the eve of Tuesday, the president is expected to proceed to the University of Wisconsin campus in Madison where he will be heading a rally which aims to replicate his youthful and enthusiastic 2008 presidential campaign. Meanwhile, Obama will also hold numerous campus rallies to warn young voters that the “hope and change” they embraced two years ago is at risk of being erased if Republicans will win these coming elections.
In a time where Democratic candidates are in a defensive stance trying to defend the present administration's expanded health care benefits, stimulus spending and other initiatives. Pres. Obama has called on Democrats to become less apologetic and be more assertive instead in convincing voters that the administration along with the Democratic-controlled Congress is indeed trying to move the country forward towards progress and development. The recent releasing of the “Pledge of America” by GOP officials is seen as a move that would benefit Democrats more according to White House Officials.
On Monday, Pres. Obama told student journalists that Republican have signaled plans to give $4 trillion worth of tax breaks with $700 billion of whom will go directly to rich people. Each of them will get an average of $100,000 check. The president and his administration aim to let the Bush-era tax cuts expire for households earning $250,000 or more a year. Pres. Obama is scheduled to hold backyard events on Wednesday in Des Moines, Iowa, and Richmond, Va., before returning to Washington that night. He will be using these backyard events to criticize the Republican pledge and show to the voters the consequences they may face if Republicans win this November.
Showing posts with label expiration of tax cuts. Show all posts
Showing posts with label expiration of tax cuts. Show all posts
Tuesday, September 28, 2010
Thursday, September 16, 2010
Change of Heart: More Democrats now oppose the Obama Plan for Tax Cuts
With just a couple more months to go before the U.S. midterm elections, American politicians are now more than busy wrapping up their campaigns and at the same time deciding on critical issues in order to boost their image. Since the start of the recession, the nation has been very consistent in asking the government for one specific thing and that is to create jobs. The previous stimulus package presented by no other than Pres. Obama was seen as a failed attempt in generating employment. And today, the voting population has been very concerned about creating jobs up to the point where it will greatly influence their votes come election time.
The previous tax cuts by then President George Bush are already expiring and Congress has been puzzled by the possibility of extending it. Meanwhile, U.S. President Barack Obama has called for the expiration of these tax breaks. He later proposed that these tax cuts will only be extended to families who earn less than $$250,000 a year. It is interesting to note that over half of the total income in the United States is concentrated to the top 10% of the list of wealthiest people in the nation. He wanted to raise taxes especially to the wealthy class stating that this will generate enough income for the government to pursue other projects and avoid any further deficit.
Previously, Democrats have strongly supported Obama’s stance on this matter. But on Wednesday, and upon seeing the disagreement and discontent of millions of American citizens, numerous Democrats have softened their stance and now support the extension of tax cuts for all people regardless of income. Democrats have received intense pressure on their stance for this matter especially those who are running this November. Rep. Jim Marshall of D-Ga. argued that at this time of recession, the government should be well aware of consequences and avoid raising taxes.
Recently, there were about 31 nervous Democrats who signed a letter that was urging House Speaker Nancy Pelosi and Majority Leader Steny Hoyer, to abandon the Obama plan and support the extension of Bush-era tax cuts to everyone. With 435 House seats, 37 in the Senate and the Democratic majorities in both houses on the line, Democrats are afraid of being afraid of being tagged as “Tax Hikers” especially that the election is getting nearer. Obama has blamed the sudden change of heart to Republicans who wanted to take hostage the middle class tax cuts so that they can come up with an additional tax cut for the wealthiest 2% of the nation.
While Obama only supports tax cuts for people earning $250,000 and less, Republicans support a full renewal of all tax cuts, regardless of income, despite a 10-year cost to the government of about $700 billion above Obama's plan. House Republican leader John Boehner said that “If we're serious about helping our economy this month we need to stop the tax hikes, and we need to cut spending,". With several weeks to go, we can expect both parties to come up with strategies in order to win the hearts of the people and gain control of the House and the Senate.
The previous tax cuts by then President George Bush are already expiring and Congress has been puzzled by the possibility of extending it. Meanwhile, U.S. President Barack Obama has called for the expiration of these tax breaks. He later proposed that these tax cuts will only be extended to families who earn less than $$250,000 a year. It is interesting to note that over half of the total income in the United States is concentrated to the top 10% of the list of wealthiest people in the nation. He wanted to raise taxes especially to the wealthy class stating that this will generate enough income for the government to pursue other projects and avoid any further deficit.
Previously, Democrats have strongly supported Obama’s stance on this matter. But on Wednesday, and upon seeing the disagreement and discontent of millions of American citizens, numerous Democrats have softened their stance and now support the extension of tax cuts for all people regardless of income. Democrats have received intense pressure on their stance for this matter especially those who are running this November. Rep. Jim Marshall of D-Ga. argued that at this time of recession, the government should be well aware of consequences and avoid raising taxes.
Recently, there were about 31 nervous Democrats who signed a letter that was urging House Speaker Nancy Pelosi and Majority Leader Steny Hoyer, to abandon the Obama plan and support the extension of Bush-era tax cuts to everyone. With 435 House seats, 37 in the Senate and the Democratic majorities in both houses on the line, Democrats are afraid of being afraid of being tagged as “Tax Hikers” especially that the election is getting nearer. Obama has blamed the sudden change of heart to Republicans who wanted to take hostage the middle class tax cuts so that they can come up with an additional tax cut for the wealthiest 2% of the nation.
While Obama only supports tax cuts for people earning $250,000 and less, Republicans support a full renewal of all tax cuts, regardless of income, despite a 10-year cost to the government of about $700 billion above Obama's plan. House Republican leader John Boehner said that “If we're serious about helping our economy this month we need to stop the tax hikes, and we need to cut spending,". With several weeks to go, we can expect both parties to come up with strategies in order to win the hearts of the people and gain control of the House and the Senate.
Wednesday, September 1, 2010
The Kind of Tax Cuts that will Really Help the Economy
On May 15, 2001, the Economic Growth and Tax Relief Reconciliation Act of 2001 was formally introduced in the House as H.R. 1836 by Rep. William M. Thomas. Not long after, then President George W. Bush signed the bill into law on June 7, 2001. The act basically made significant changes in several areas of the U.S. internet revenue code. It meant the implementation of tax reduction schemes on income tax rates, estate taxes and taxes on retirement plans. All these tax cuts are set to retire at the end of the year 2010 Congress decides to act and extend it further.
Today, there have been debates with regards to extending these tax cuts or not. We can clearly see the massive effect of the economic recession to the American economy. The high unemployment rates are attributed to the sudden collapse of financial institutions and business firms who felt the huge impact of the recession. Figures show that about 15 million Americans are still unemployed as of the moment. Many politicians believe that one of the short term solutions to these problems is an extension to the previously implemented tax cuts by Bush.
Democrats have shown less support for tax cuts while Republicans strongly oppose the idea of spending more. So what kind of tax cuts should be implemented then to generate jobs faster and help the economy recover? Simple, the kind of tax cuts that will generate more jobs is that one that business companies get only if they spend more money. One concrete idea was to implement a temporary cut in the payroll system so that employers will be relieved of the cost of employing people. By suspending the taxes that cover social security and Medicare, Washington will be able to lower the cost of keeping or hiring workers.
There are other viable suggestions that are presented by U.S. lawmakers. One solution was to implement an expanded tax credit that will benefit the new clean energy projects. Another is the expansion of tax credit for businesses that will increase their workforce or hire more employees. Although these tax cuts will generally not solve the long term economic problems that the nation has faced, it will certainly help avoid the resurfacing of newer problems such as a double dip recession. The most helpful thing that the government can do is to generate more jobs as people badly need it today. We may have long work to do but as long as we start now, we will be assured of victory in the future.
Today, there have been debates with regards to extending these tax cuts or not. We can clearly see the massive effect of the economic recession to the American economy. The high unemployment rates are attributed to the sudden collapse of financial institutions and business firms who felt the huge impact of the recession. Figures show that about 15 million Americans are still unemployed as of the moment. Many politicians believe that one of the short term solutions to these problems is an extension to the previously implemented tax cuts by Bush.
Democrats have shown less support for tax cuts while Republicans strongly oppose the idea of spending more. So what kind of tax cuts should be implemented then to generate jobs faster and help the economy recover? Simple, the kind of tax cuts that will generate more jobs is that one that business companies get only if they spend more money. One concrete idea was to implement a temporary cut in the payroll system so that employers will be relieved of the cost of employing people. By suspending the taxes that cover social security and Medicare, Washington will be able to lower the cost of keeping or hiring workers.
There are other viable suggestions that are presented by U.S. lawmakers. One solution was to implement an expanded tax credit that will benefit the new clean energy projects. Another is the expansion of tax credit for businesses that will increase their workforce or hire more employees. Although these tax cuts will generally not solve the long term economic problems that the nation has faced, it will certainly help avoid the resurfacing of newer problems such as a double dip recession. The most helpful thing that the government can do is to generate more jobs as people badly need it today. We may have long work to do but as long as we start now, we will be assured of victory in the future.
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