We need lots and lots of tax cuts. For one,lets cut the capital gains tax to between 1 and 5 %. cut the individual incometax to a max of 10-15 %. Cut all business income taxes to ZERO. And fire about half of all non-essential fed employees. Like 3/4 of all congesssional staffs and committee staffs. Ger rid of a bunch of the fed departments like HUD and Education. And this would just be a baginning.
On Tue, Jan 6, 2009 at 2:49 AM, Lone Wolf <[email protected]> wrote: > > Obama stimulus plan to include major corporate tax cuts > By Jerry White > 6 January 2009 > > For weeks, spokesmen for the incoming Barack Obama administration have > suggested that they would respond to the economic crisis by launching > a massive program of public spending, with some supporters comparing > the scope of the planned economic stimulus package to Roosevelt's New > Deal measures during the Great Depression. > > Details of Obama's proposals began to emerge on Monday, and it is > clear that the US president-elect is proposing a relatively small > "stimulus" package, which will include further massive tax incentives > for corporate America. The provisions for ordinary people will do next > to nothing to alleviate the impact of the greatest economic crisis > since the Great Depression. > > This weekend the Obama transition team revealed that 40 percent of the > estimated $675-775 billion it plans to spend over the next two years > on its economic package would be earmarked for tax cuts, with about > half going to big business. > > The Wall Street Journal noted that the "Obama tax-cut proposals, if > enacted, could pack more punch in two years than either of George W. > Bush's tax cuts did in their first two years." Many of Obama's > proposals, the newspaper wrote, were, in fact, extensions of measures > carried out by the Republican administration over the last eight > years. > > One such provision under the Obama plan would allow businesses to > reduce taxes by claiming immediate depreciation of half of their > spending on new equipment, rather than spreading out that depreciation > over years. > > Another would allow businesses to write off the huge losses they > incurred last year and any suffered in 2009, enabling corporations to > apply retroactively for refunds on taxes paid over the last five > years. > > Corporations will also get thousands of dollars in tax credits for > each job supposedly created or retained. > > Under the plan, ordinary working people will receive a tax credit > worth up to $500 for individual workers and $1,000 for families—adding > up to about $150 billion of the total package. This under conditions > in which the decline in the value of US homes alone will lead to the > wiping out of some $6 trillion in US household wealth. > > This means families crushed by high levels of debt and other living > expenses will either pay a little less in taxes or receive a rebate of > a few hundred dollars. The new administration will also adjust payroll > taxes for the current year, meaning an average worker is likely to see > his or her paycheck increase by about $10 a week! > > The proposed $300 billion in tax cuts were greater than expected and > immediately won praise from Republicans who had criticized the > previous focus on government spending. Senate Minority Leader Mitch > McConnell (Rep.-Kentucky) praised the tax cuts, saying they were "the > sort of thing we could have bipartisan agreement on," adding that > "Republicans, by and large, think tax relief is a great way to get > money to people immediately." > > The Democrats, who will increase their majority when the 111th > Congress convenes Tuesday, had said they hoped to have a stimulus > package approved for Obama to sign immediately after being sworn in on > January 20. Congressional leaders are now saying they will need until > mid-February to craft a bipartisan agreement. Obama has said he wants > an 80 percent approval from Congress—giving the Republican minority > that was overwhelmingly defeated at the polls virtual veto power over > the legislation. > > In discussions with congressional leaders Monday, Republicans > reportedly pressed for even larger tax cuts along with deep cuts to > the federal budget to offset increased spending. For their part, Obama > and leading Democrats, such as House Speaker Nancy Pelosi, insisted > they would be "fiscally responsible" and vowed to carry out "radical > reforms" to reduce spending. > > Ten percent of the package is directed towards extending unemployment > benefits or providing temporary extensions of health care coverage, > even though millions are facing the loss of their incomes and medical > benefits. On Friday, the Labor Department is expected to announce that > another 500,000 jobs were lost in December, bringing to 2.4 million > the number of jobs lost in 2008, the most since World War II. > > While a portion of the stimulus money is directed toward public > infrastructure improvements and aiding city and state governments, the > Democrats, like the Republicans, insist these projects will be based > on corporate profitability. Obama aides indicate that 80 percent of > the 3 million jobs the package will supposedly create or "save" will > be in the private sector, including private contractors working for > the government. > > In his weekly address, President-elect Obama said, "If we don't act > swiftly and boldly, we could see a much deeper economic downturn that > could lead to double-digit unemployment." These measures, however, are > likely to have little effect on the hemorrhaging of jobs, which is > continuing unabated as manufacturing activity, consumer spending and > lending contract sharply. > > William Gale, a tax policy analyst at the Brookings Institution, told > the Wall Street Journal that much of the money would likely go to > companies that would have hired more people anyway. Other critics have > noted that companies could simply add temporary or contract employees > to qualify for the tax breaks. In addition, several corporations have > already "retained" jobs by imposing unpaid holidays and reducing wages > and benefits, as several corporations have already done. > > During his campaign Obama said he would eliminate the Bush tax breaks > for those making above $200,000. No tax increases on the wealthy, > however, were included in the plan, with spokesmen for the incoming > administration suggesting such measures would undermine efforts to > encourage businesses to hire workers. According to the New York Times, > his aides "have signaled that they will wait to let Mr. Bush's tax > cuts for the wealthiest Americans expire in 2010, rather than try to > repeal them sooner." > > Just as he has done on foreign policy, Obama has embraced the most > right-wing economic policies in order to defend the interests of > America's financial elite. This will produce shock and disappointment, > and ultimately anger and opposition, among working people who voted to > end these reactionary policies. > > On Monday Times columnist and economist Paul Krugman—who is one of the > liberal media supporters of Obama—expressed concern over the > Democrats' collaboration with the Republicans and warned that a > stimulus package could be too little and too late to prevent a > financial meltdown. > > "The fact is that recent economic numbers have been terrifying, not > just in the United States but around the world," he wrote. > "Manufacturing, in particular, is plunging everywhere. Banks aren't > lending; businesses and consumers aren't spending. Let's not mince > words: This looks an awful lot like the beginning of a second Great > Depression." > > The precarious state of the US economy was underscored Monday with the > reports of sharp declines in auto sales in December, closing out one > of the worst years in the history of the US auto industry. GM, Ford, > Toyota, Honda and Nissan all suffered more than 30 percent falloffs, > with Chrysler sales plummeting by more than 50 percent. > > > > -- *~@):~{> --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
