Missing From Obama's Speech: Business Tax Cuts

In President-elect Barack Obama's major economic address, he laid out one dozen key planks of the American Recovery and Reinvestment Plan, including initiatives to:

1. "double the production of alternative energy in the next three years"

2. "modernize more than 75 percent of federal buildings and improve the energy efficiency of 2 million American homes"

3. "[create] jobs building solar panels and wind turbines, constructing fuel-efficient cars and buildings, and developing the new energy technologies that will lead to even more jobs"

4. "make the immediate investments necessary to ensure that within five years all of America's medical records are computerized [to] save billions of dollars and thousands of jobs"

5. "equip tens of thousands of schools, community colleges and public universities with 21st-century classrooms, labs and libraries"

6. "put people to work repairing crumbling roads, bridges and schools"

7. "starting to build a new smart grid that will save us money, protect our power sources from blackout or attack, and deliver clean, alternative forms of energy to every corner of our nation."

8. "expand[] broadband lines across America so that a small business in a rural town can connect and compete with their counterparts anywhere in the world"

9. "invest[] in the science, research and technology that will lead to new medical breakthroughs, new discoveries, and entire new industries."

10. "[give] 95 percent of working families will receive a thousand-dollar tax cut"

11. "continue the bipartisan extension of unemployment insurance and health-care coverage"

12. "help struggling states avoid harmful budget cuts"

All the chatter this week has been about the suggestion that Obama would add several business tax breaks to the package, but there was no mention of that today.

Meanwhile, the widespread criticism that such tax breaks would be ineffective at healing the economy appears to have taken root among key congresspeople, raising the likelihood that business tax cuts won't be part of the final bill.

I can't fully predict that business tax cuts will get stiff-armed by Congress. But it is clear from today's speech that business tax cuts are not the centerpiece of Obama's plan. The centerpieces are major public investment in America's foundation, tax cuts for working families and aid for squeezed state governments.

Even if business tax cuts end up in the final package, they will not negate all of those positive components, so crucial to mitigate the pain of recession in the short-term and to put America on a sustainable path in the long-run.

So keep pushing against ineffective business tax breaks, but also push for swift passage of the overall American Recovery and Reinvestment Plan. (Campaign for America's Future has set up a page to easily contact your congresspeople and voice your support.)

Because every day of delay limits our ability to blunt the impact of the already 13-month long recession. And we need jobs now.

Originally posted at OurFuture.org

Comments

[DailyMantra]

He has stated plans to cut small business taxes

http://www.youtube.com/watch?v=lunSuQCQD_c

[sonoffestus]

I have owned a small business for over twenty years, I have never felt over taxed. The bigger problem for small business is the cost of healthcare insurance. The tax argument is a red herring. It allows folks to shift the conversation from health insurance to the tax boogyman. Universal Health Insurance would go a long way in helping small business survive and grow.

Now, if you want corporate tax breaks fine, but it has to be tied into job creation in the USA. You want a tax break, tell me how many jobs you will generate. If the number isn't met , you have to pay back the proportional amount of dollars you were given as a tax break.

The problem with corporate tax breaks is that corporations will invest that money in the most profitable business unit. In todays marketplace that usually means outside of the US. Corporations are not created to benefit society in general , but rather to benefit their shareholders. Unless, government works to secure its citizens investment in America(taxes), then corporations will continue to ship our wealth off shore to the benefit of their shareholders. This is their intended goal and legal responsibility.

[Drdemocrat]

Good point!

[TomTheAlmostUgly]

"Business tax cuts"? Oh, please. Does anybody really think that we have a recession because businesses are overtaxed? No we have a recession because the customers -- the American people -- have no money to spend.

HOW ABOUT A BAILOUT FOR JOHN Q. CITIZEN?

We now are in the absurd situation in which the porn industry thinks they're entitled to a bailout! And they'll probably get one, before the American people do.

[AnnfromCA]

Yes, I do.

[SethBLiNK]

By not putting in business tax cuts but also not rolling back the Bush tax cuts, he avoids one fight or two and accomplishes the same thing.

[Danigirl65]

In response to this post and Reverend Draco's comments in particular, Obama's stimulus package DOES include business tax cuts - FOR SMALL BUSINESS - as it should. As a small (7 employee), family owned industrial distribution company, my company has been hurt deeply by seven years of bad policy that only helped the BIG companies, but left small companies to fend for themselves. Not to mention, being affected by the automotive down-turn (3 million jobs tied to automotive, my butt).

Some posters need to realize that they shouldn't bunch "business" into one lump group - there are many small businesses out here who are in desperate need of help.

[ReverendDraco]

And there should be no mention of business tax cuts . . what their *should* be is mention of raising taxes for businesses, and cutting taxes almost entirely for individuals. . . since businesses have income and working people do not.
I think a tax of 50% for any business making over $1 billion a year is more than reasonable. . . think of it as membership dues for the I-am-allow­ed-to-lega­lly-rob-pe­ople club.

[LeftRight]

I partly disagree with you there. First because the businesses DO pass the taxes on to the people. And second because the UBER rich, and even just the rich, need to be paying more. Not because I want to punish them, but because when the highest personal tax rate is actually high, the leaders of a company don't take so much money out of the company, which leaves more money in the company for ACTUAL investment in jobs!!

[newmexicogold]

Microsoft and Novell paid $0 in corporate taxes in 2006 and 2007. One of the Republican corporate tricks was to pass an allowance for 'employee re'investment.' This was intended to offset corporate taxes by giving a taxable write-off for stock purchaces by executives. Bookkeepers realized they could use this for all employee transactions. 401k contributions then became a tax offset.

Corporate laws and taxes need to be restored to when the US was most productive - for it's citizens, not for the profit margins that generate wealth for a few.

[XME]

May sound good in theory, but in reality, that would just cause a HUGE number of businesses that are still in America to move overseas.

[LeftRight]

No it wouldn't. What would happen is that they would simply pass the costs along....

[AnnfromCA]

They already have.