Obama To GOP: End Tax Breaks For Millionaires, Oil Companies (VIDEO)

WASHINGTON (AP) -- In a blunt challenge to Republicans in Congress, President Barack Obama insisted Wednesday that limiting selected tax breaks for oil companies and the super-wealthy must be part of any deficit reduction plan.

"That's not radical," he said at a White House news conference. He was quick to add that a bipartisan agreement is possible to cut deficits, raise the government's debt limit and avert a threatened financial crisis.

Republicans in Congress have been insistent in recent days that any deficit reduction be limited to spending cuts, including reductions in benefit programs such as Medicare and Medicaid, and exclude additional revenues.

But Obama said both parties must be prepared to "take on their sacred cows" as part of the deficit-reduction negotiations.

In his opening remarks, the president called on lawmakers to renew a payroll tax cut that took effect on Jan. 1, identifying it as one of several measures lawmakers could approve to help create jobs. He also urged passage of trade agreements with Panama, South Korea and Colombia, and an overhaul of the nation's patent laws.

Obama's last previous full-fledged news conference was in March. In the intervening months, the economic recovery has slowed, the president has announced a plan to begin withdrawing U.S. combat troops from Afghanistan and the administration has joined an international military coalition working to prevent the rout of rebels hoping to topple Libyan leader Moammar Gaddafi.

Above all loom the negotiations with Congress on deficit cuts demanded by Republicans as the price for supporting an increase in the nation's debt limit.

The president stepped to the podium not long after the International Monetary Fund publicly urged lawmakers to raise the debt limit, now $14.3 trillion, and warned that failure to do so could produce a spike in interest rates and "severe shock to the economy and world financial markets."

It recommended a long-term strategy for reducing red ink, warning that cutting deficits too quickly could slow the weak recovery of the U.S. economy.

The budget deficit is projected to reach a record $1.4 trillion for the current fiscal year, which ends Sept. 30.

Comments

[PRONESE]

01:44 AM on 07/11/2011

President Obama extended the number of years that depreciation on aircraft can be claimed from 5 to 7 years in the stimulus plan that not a single Republican voted for.
Smell the hypocrisy.
R/ PRONESE

[sarmi70366]

11:25 AM on 07/02/2011

END YOUR HUGE BLOATED BIGGER GOVERNMENT SOCIALISTIC COLLECTIVIST INCOME REDISTRIBUTION WASTEFUL SPENDING WAYS.

[Oginikwe]

01:00 AM on 07/03/2011

COULDN'T AGREE MORE--END CONTRACTS FOR HALLIBURTON, BLACKWATER, AND OTHER CORPORATTIONS--END SUBSIDIES FOR THE OIL COMPANIES, GAS COMPANIES, AGRIBUSINESS, ETC. ETC.

(Are we done yelling now?) :D

[rhuffie]

07:26 PM on 06/30/2011

To Obama;
STICK TO YOUR GUNS, FOR GOD'S SAKE!!!!
YOU SAID YOU AREN'T GOING TO CAVE ON EXTENDING TAX CUTS FOR THE WEALTHY LIKE YOU DID LAST TIME...PLEASE, PLEASE, PLEASE BE GOOD TO YOUR WORD THIS TIME...I'M TRYING AS HARD AS I CAN TO HAVE HOPE!!!

[Montana Mining]

06:41 PM on 06/30/2011

Then-Senator Barack Obama in 2006, speaking about the budget’s $9 Trillion Debt Limit. With President Bush in office, here’s what Sen. Obama had to say…

“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that “the buck stops here.” Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.”

[jharris344]

06:46 PM on 06/30/2011

Oddly enough that was 2 years before Bush finally tanked the global financial markets!! LOL!

[jharris344]

06:47 PM on 06/30/2011

Oddly enough, that was after Bush came into office with a surplus! He left after putting us over $11Tril in debt!!

[Montana Mining]

05:51 PM on 06/30/2011

(continued) It is easy in times of high oil prices for the administration to attack the industry so as to evoke class warfare and make people believe they are looking out for the citizens, when, in fact, it is primarily the citizens they are going after. The bottom line is that if investment capital for domestic drilling is harder to come by, it translates to less market stability, decreased national security, and higher fuel prices for us all. If President Obama were being completely honest and forthright with us today , instead of proposing that we "get rid of tax breaks for oil companies" , he would have said "Today, I have um-uh called on uh congress erh-uh to pass a law preventing U.S. um citizens from investing in domestic energy and-um, uh furthermore, I have directed my um staff to begin collecting $1.00 per uh gallon of um-er-uh additional federal fuel taxes."

Decisions are presently being made that will have long standing consequences for all of us. We had had better wake up and hold our government and our media accountable for their actions and the propaganda that is being used to make those actions seem more palatable to us all.

[jharris344]

06:09 PM on 06/30/2011

LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! And, of course, the republicans would shout "YES!!" to all of this? LOL! LOL! LOL! LOL! LOL! LOL! I mean, we can't even get repubs to think about raising taxes! LOL! LOL! LOL! LOL! LOL! LOL!

[Montana Mining]

06:25 PM on 06/30/2011

why the hell would anyone want to raise taxes , particularly in an already crumbling economy ????

[Montana Mining]

05:49 PM on 06/30/2011

(continued) Investors are allowed a tax deduction for the portion of their total investment that is considered to be IDCs (intangible drilling costs) , these are the nonrecoverable expenses associated with drilling a new well (rig time,cement, fuel, drilling mud, etc. items paid for which cannot be recovered, salvaged and/or resold-reused ) . According to 612 of IRS code, Intangible Drilling Cost (IDCs) may be deducted in the year paid, rather than capitalized and depreciated. This is the same federal tax treatment extended to the "risk capital" portion of any other domestic business investment and without an IDC deduction allowed, there would be no incentive for people to invest in something as inherently risky , yet necessary, as domestic oil & gas drilling. For the federal government to single out investors in any particular industry (such as oil & gas) simply because the Obama administration admittedly "does not like them" or they are presently "making too much profit" is flat out wrong, it is no different than stating certain people must pay more tax because of their skin color or religion.

[jharris344]

06:10 PM on 06/30/2011

Actually, most of their tax breaks come from accounting tricks that pile loses in the US while taking their gains to more tax friendly coutries!

[Montana Mining]

05:47 PM on 06/30/2011

President Obama stated today:
"The tax cuts I'm proposing we get rid of are tax breaks for millionaires and billionaires, tax breaks for oil companies and hedge fund companies and jet owners,"
(at least he didn't say "oil subsidies" today, as he has repeatedly referred to said tax breaks in the past)

What is being continuously ignored is the fact that the majority of these tax breaks are afforded to the individual investors whom, in aggregate, provide the vast majority of capital for domestic drilling. When I say "investors" , I am not referring to wealthy individuals, day traders that invest for a living, or huge hedge funds, I am talking about working class people, blue collar workers, single parents, retired people, almost anyone with a 401k or other retirement vehicle. Drilling new wells , even in proven areas, is risky business, there are no "sure things" and the risk capital expended to drill with typically comes, in aggregate, from individual investors , even when it is a major oil company doing the drilling. Oil is a volatile commodity and oil which costs $60. per bbl to produce that is selling for $80. per bbl today might well be selling for $40. per bbl tomorrow, it is unpredictable and government intervention does not help to stabilize the marketplace.

[jharris344]

06:11 PM on 06/30/2011

LOL!! LOL!! So, what you're saying is we need to stop whining about welfare to big oil because some analysts are investing our 401K's in them? LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL! LOL!

[Montana Mining]

06:19 PM on 06/30/2011

No , I am saying that funds for domestic drilling come from individual investors and those individual working interest INVESTORS are the ones that receive IDC tax deductions, NOT big oil companies as Obama keeps saying

[Kurfco]

05:07 PM on 06/30/2011

A tax deduction for a business expense is not a "tax break". Companies deduct the cost of their employees, their health coverage, the cost of materials to manufacture and ship products, etc. Would Huffers consider these to be "tax breaks"?

Prepare yourselves. The blather about eliminating the deduction for corporate jets will go nowhere. Believe me Warren Buffet and his NetJets and the industry built around corporate jet manufacture, sales and service will have wasted no time to explain, as Nevada did when Obama poor mouthed Las Vegas: "What are you thinking?! In a deep recession, are you trying to kill off another industry?"!
Get prepared to never hear this uttered again.

[GeorgieGirl9]

02:46 PM on 06/30/2011

GOP to Obama: quit campaigning for one minute and negotiate on the debt ceiling.

[jharris344]

06:13 PM on 06/30/2011

US Citizens to GOP: stop holding our country hostage by acting like a bunch of goons! Raise the debt ceiling and move on! You bunch of cry babies!!

[Moll Flanders]

12:22 PM on 07/02/2011

US citizens to both parties: stop acting like self-interested, greedy children and do the job you were elected to do.

[Profficer1979]

09:37 PM on 06/30/2011

GeorgieGirl9:


The Republicans in congress have refused the tax increases proposed by Democrats. In contrast, the Democrats have agreed to many of the spending cuts proposed by Republicans.

Exactly what is there left to negotiate? More spending cuts?

Let us assume that Obama gives up on tax increases and agrees to everything the Republicans want. Do you think that Senate Democrats will vote for the bill? Let me answer the question for you: Absolutely not.

So Obama isn't really negotiating, he mediating.

It seems pretty obvious to me what is happening. Everyone sensible person agrees that bad things will happen if the debt ceiling isn't raised. The Republicans are using the threat of disaster to push some of thier initiatives through. There isn't really much the President can do about it except use the bully pulpit to shed light on their plan and hope that they back away from it.

[Freddie27]

01:47 PM on 06/30/2011

I'm so thankful Obama's President. You can not sort out the deficit by just raising taxes, or by just cutting spending. You need to do both.
P.S. Baggers - cutting spending DOESN'T mean abolishing the program

[KER2]

10:27 PM on 07/01/2011

Can I ask what is a Jewish Atheist? Just curious.

[Mamadiez]

12:30 PM on 06/30/2011

How quickly we forget. I find it incredibly refreshing to have a President who steps up to the podium and fields any and all questions with intelligence. It's true that what he is asking for in the budget negotiations is not radical in the least. The Republicans are clinging to their ideology at the expense of the people. I know it's all about Obama now and no one wants to look back, but people, remember that the previous 8 years took us from a record surplus to the brink of financial destruction and record deficits. Why would we want to adopt the policies that got us here? Let's focus on creating jobs and not lose sight of who we are in the process.

[GeorgieGirl9]

02:47 PM on 06/30/2011

What press conference did you watch - certainly wasn't the one Obama gave yesterday.

[Montana Mining]

05:54 PM on 06/30/2011

um uh yeah well um he sounds uh really um er intelligent and um

[jharris344]

06:13 PM on 06/30/2011

Don't let your envy show too much!! LOL!!

[Profficer1979]

09:41 PM on 06/30/2011

@Montana Mining

Do you measure intelligent speech by counting "ers" and "ums"?

Was his message lost due to incoherent sentences?

[debbiej845]

11:46 AM on 06/30/2011

Typical Obama - blaming others. He could have held this blame the corporate jet owners/bad economy campaign invoked press conference from Air Force One - or did Michelle take it on her African safari with extended family trip. Got a good idea - Obama put out your own budget. I'd work for a corporate jet owner any day, other than a politician who spends money like it's not his. And we can take a taxi to the airport - not one of the many limousines that this administration has acquired and tripled the size of their limo fleet.

[Tanya OaksBrooks]

02:22 PM on 06/30/2011

The POTUS has to travel by AF-1, mostly for security reasons. Are you suggesting that he take a commercial flight? Do you think Obama is the first president to do press conferences on AF-1? There is a documentary that you can watch online that's all about that plane. It shows the room set up for press conferences, the gym, office, two kitches, bedrooms, the huge staff and all the structural requirements including the non-classified parts of the security systems.

Oh, did I mention this came out in 2003?

Do you think the POTUS can take a taxi to the airport? Again...security. Your limousine comments are completely wrong. It started with Michele Bachmann claiming that Obama had increased the size of the limo fleet by 73% (a far cry from tripling it), and even that was proven false.

Here's proof:

http://www.factcheck.org/2011/06/bachmanns-waterloo/

The germaine part: "She criticized the president for a 73 percent increase in government "limousines." But one department accounted for the increase, and it had a long-term plan, pre-dating Obama, to add armored vehicles. The term "limousine" includes armored vehicles and sedans, not just actual limos."

PRE-DATING OBAMA. That means that they were ordered under Bush.

Speaking of blaming others...

[rhuffie]

07:29 PM on 06/30/2011

TO MUCH FOX

[debbiej845]

09:17 PM on 06/30/2011

NOT ENOUGH FOX - you have too much ABC, NBC and CBS - all lap dogs for democrats. Look at some facts on paper and quit listening to liberals in New York. OBAMA GAVE THE MOST TO ALL OF THESE COMPANIES when he passed his STIMULUS. That was as bad as his CASH FOR CLUNKERS. He's not a business man, never has been, does not understand what it is to be in business and never will. When he leaves office and takes his tax cheat Geitner with him, business will invest in their corporations as then they'll realize a conservative will be in office and then people will have HOPE for the future.

[septsong]

09:48 AM on 06/30/2011

duh... its a no brainier. if the 787 billion stim had done is job.. we would 1. not have the unemployment at 10% and 2.. he would not be asking for me.. the real issue.. is America's lack of confidence or trust in his ability.. up till now they have no sense of success with his policies.. they are huge failures... throwing more money at them is not the answer.. Leadership is..and he lacks that on a major scale.. and it shows..

[Tanya OaksBrooks]

02:23 PM on 06/30/2011

A no-brainier, eh?

I'm not even gonna touch that one.

[Birddog13]

03:29 PM on 06/30/2011

Exactly what would this "leader" that we need do to turn around the economy?

[Tresco]

07:57 AM on 06/30/2011

So Exon does not employ tens of thousands of Americans directly on the payroll? Is that your arguement? Are you arguing that Obama really understands how the private sector because he has operated in it running businesses and meeting payroll? He really has done those things? Or are you just making noises because you have nothin' and you don't like to hear what you don't like to hear?

[jharris344]

08:50 AM on 06/30/2011

So, you're advocating continuation of welfare to successful companies? They don't need the money.

[debbiej845]

11:50 AM on 06/30/2011

Show some proof of welfare to successful companies - or did you just hear that out of the President's mouth during his campaign speech? At least you could work for a corporation and pay your taxes. Would you rather give more money to Washington so they can spend it on what they want for the moment and then ask you for more. Keep sending it, they'll keep spending it, you don't honestly believe they'd pay down the debt?!

[m nic]

09:14 AM on 06/30/2011

And, what does any of that have to do with ending credits or subsidies for activities that these companies should and can be paying for on their own?

[Montana Mining]

05:57 PM on 06/30/2011

newsflash: oil companies do NOT, nor have they ever, received government subsidies, that is just another Obama lie

[xen0phanes]

05:50 AM on 06/30/2011

Today Obama announced his latest villain: "The Corporate Jet Owner" the loathsome pinnacle of evil fat-cats, whose tax breaks will keep kids from going to college. In possibly the most dishonest example of demagoguery by the Class-Warrior-In-Chief yet, we are to believe Reps are keeping earnest Dems from real debt reform to protect their friends the Jet Owners (and Big Oil). But there's a hole in the President's argument that you could, well, fly a G6 through.

The DEMOCRATIC congress passed the "Economic Stimulus Act of 2008" amending IRS 168(k) to "allow a 50% additional first year depreciation deduction " (IRS Bulletin 2008-44) and increasing Section 179 expensing to $250K, raising the cap to $800K. They wanted to stimulate (among others) the aircraft industry where jet sales dropped 42% and ~20K were laid-off.

It was Obama who proudly signed H.R.4853 "Tax Relief... and Job Creation Act" containing Title IV, extending the Bonus Depreciation until 2014 and raising the first year deduction to 100%! (Title IV Sect 401 (a) (1)-(5))

Look, people with private jets don't need tax breaks. What're we talking? ~$3B. At what cost? Plummeting sales. 20K aviation jobs?

So the LEADER of the Free World, chiding Republicans for lack of leadership, offers his flagship proposal: raising .075% of the $4T and demagogue private jet users? (600 attended his inauguration.) For those who still believe in him, Rage Against the Machine said it best "WAKE UP!"

[bob789]

07:17 AM on 06/30/2011

Sadly many young liberals will be happy to begin the anti-private jet chant immediately.

While, I might add, telling the world they are critical and independent thinkers.

Obama knows his base.

[capercaper]

10:34 AM on 06/30/2011

Spot on!

[MovieGuy2010]

11:26 AM on 06/30/2011

Silly baggerboy, ONLY the baggers are chanting about corporate jets?

The sane amongst know that was an example, that maybe in the corporate loopholes they want to balance the package of cuts, it might not be.

It's Rush and you tools that are going Lear crazy this morning....

[MovieGuy2010]

11:02 AM on 06/30/2011

Talking point Dejour...

So, did you copy this from Rush, or another right wing feeding source for your daily dosage?

[xen0phanes]

11:54 AM on 06/30/2011

never listen to Rush. Do my own research. I actually started out by thinking "why won't Republicans cede this point? Looks like cronyism at it's worst to defend corporate jet tax breaks." So I ask "what tax breaks are we talking about - specifically?" There are tons of notices within the aviation community and even the IRS at the time of the incentive, explaining how the stimulus was going to help (and it did in this case). GA jet sales were plummeting and they were laying off. But with the deduction, some buyers on the margin chose a new jet over a used on (no deduction there) and it stabilized the industry. But now to pretend that it's some Republican trick to further enrich the millionaires and billionaires when Obama himself signed the increase from 50% to 100% into law just 7 months ago is simply Kabuki theater at it's worst.

[bob789]

03:12 PM on 06/30/2011

Interesting sparky.

As all of you share exactly the same views, what trough are liberals fond of these days?