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  • Morning Bell: Get to Work Stopping the Obama Tax Hikes

    Last night, during a taped interview with 60 Minutes, President Barack Obama told Steve Kroft: “I thought the economy would have gotten better by now. One of the things I think you understand as president is you’re held responsible for everything. But you don’t always have control of everything.” President Obama is right: presidents often do get too much of the credit and too much of the blame for the economic performance of the country. But there is one aspect of the economy that President Obama does have control over: taxes. And at a time when our nation’s unemployment still hovers around 10%, President Obama’s tax plan raises taxes by $1.8 trillion over the next 10 years.

    The White House wants you to believe that only the wealthy will pay higher taxes under the President’s plan. Don’t believe them for a second. These hikes include reducing the child tax credit, re-imposing the marriage penalty, raising taxes on small businesses (the American jobs engine), raising dividend taxes (draining seniors’ incomes), raising capital gains taxes (diverting money from job-creating investments) and raising some personal tax rates.

    The Heritage Foundation Center for Data Analysis has estimated the impacts of the Obama tax hikes and found they would: 1) decrease inflation-adjusted gross domestic product (GDP) by $1.1 trillion by 2020; 2) decrease business investment by $33 billion a year; 3) decrease personal savings by $38 billion in 2011 alone; 4) decrease consumer spending by $706 billion through 2020; and 5) kill an average of 693,000 jobs a year through 2020. Congress must Get to Work Stopping the Obama Tax Hikes. Specifically, Congress must:

    • Block the Obama Tax Hikes. The current lower taxes must be made permanent for all individuals, businesses and investors. Government must get out of the way so the American economy can grow and create jobs.
    • Permanently Eliminate the Death Tax. Congress must stick with current policy and permanently repeal the death tax once and for all.
    • Eliminate the Alternative Minimum Tax. Congress has enacted temporary patches from time to time to ameliorate the impact of the AMT on a growing number of taxpayers. Congress should repeal the Alternative Minimum Tax for good.
    • Repeal the Obamacare Taxes. As part of the repeal of the Obamacare statute, Congress should eliminate the Obamacare taxes, including the “surtax” on dividends and capital gains which hinders economic growth and job creation.
    • Lower Corporate Income Taxes. The top U.S. corporate tax rate should be reduced to 25% to help eliminate the incentive to move businesses and jobs overseas.

    According to a new Rasmussen Reports poll, 58% of likely U.S. Voters say tax increases will hurt the economy while just 18% feel increasing taxes will help our economy. Minority Whip Eric Cantor (R-VA) told Fox News Sunday yesterday: “I am not for raising taxes in a recession, especially when it comes to the job creators that we need so desperately to start creating jobs again. I am not for sending any signal to small businesses in this country that they’re going to have their tax rates go up.” Conservatives must pay close attention to what this Congress does and be prepared to hold leaders accountable. That is why The Heritage Foundation has created the Solutions for America: Get to Work checklist. Stopping the Obama Tax Hikes is just one of five tasks Congress must complete – as the BARE MINIMUM REQUIRED – to fulfill its electoral mandate. You can download and print all of the “Get to Work” fact sheets and checklist, here.

    Quick Hits:

    • On 60 Minutes last night, President Obama blamed a sluggish economy for heavy Democratic electoral losses.
    • Also on 60 Minutes, President Obama said if we don’t pass another economic stimulus the U.S. economy could enter a “new normal” of high unemployment.
    • The high cost of alternative energy is making new projects tough to sell.
    • Texas is considering dropping out of Medicaid.
    • You can listen to Heritage experts James Carafano, Brian Riedl, Curtis Dubay, David Azerrad and Nina Owcharenko discuss Heritage’s new Checklist for the incoming Congress, here. Subscribe to Heritage podcasts, here.
    Posted in Ongoing Priorities [slideshow_deploy]

    31 Responses to Morning Bell: Get to Work Stopping the Obama Tax Hikes

    1. Jeanne Stotler, Wood says:

      BHO doesn't get it or chooses to ignore the fact that when taxes are raised on ANYTHING, we all pay, higher taxes mean higher cost and these are passed on to US the consumers as goods costing more. We need the price of goods to come down as a lot of us are bringing home less than we did 2 years ago, medical ins. is higher and although retires will not get a raise in SS they will pay more in medicare and medicare supplements will most likely go up, they did last year which meant smaller checks for those on SS. If the "Bush"" tax cuts expire every working American will feel it and it will cause food, and all other goods to increase, we will most likely come close to double diget inflation and more job cuts.

    2. KC - New Mexico says:

      As long as the “not very intelligent” democrats in the House elect Pelosi to be their leader – again, and with the arrogant attitude that Reid brings to the Senate, I doubt that the democrats will change their approach. After all, Obama did not listen or hear what the majority of Americans want. Neither did the remaining democrats in the House or Senate hear what is being demanded. Last night on the news, it was still evident that Obama does not get it regarding taxes.

      Having stated the above, I do agree with HF that the tax issue needs to be solved and voted on now. May be now is the time for the Tea Party and Republican party as well as the more conservative Democrats to rise up and speak. The arrogant leadership just does not hear or listen – now they need to be forced to listen. I suggest a barrage of mail, text, and email to both the mainstream media and to Washington. Protests on the streets will help as well – get the media to realize that this is a serious issue and that the American public has had it with Washington.

    3. Glynnda White, Orlan says:

      I would suggest going further than your suggestions. The Fair Tax would eliminate all income tax, vat taxes and best of all shut down the IRS. The organization has far too much and over reaching police powers and the cost to run this particular behemoth runs in the billions- don't know how much, but they employ what?…..a hundred thousand people?……in government circles this will translate into multiple billions of dollars.

      Money being hidden outside of the US would come, employers would be able to hire more people…….and on and on and on….

      Also as far as health care, if the government is insistent on mandating health care for everyone how about they put in place an HSA account for every CITIZEN? They could partially fund the account, the state and local governments could partially fund the accounts, employers and citizens could partially fund the accounts. Every man/woman and child would have these accounts and the citizens or their parents would be responsible for purchasing the health care that is best for their particular family situation. As in all HSA accounts, the money would only be spent on health related care, the definition of which should be greatly widened.

      WOW!!!!! Shut down the IRS and Medicaid/Medicare!!!!!!!

      Both of these measures take a great amount of power and control out of the hands of the government, something we need terribly. Let's keep moving on PRIVATIZING government run orgs such as Fannie and Freddie, Shut down the FED, Social Security since the government's job on leaving untouchable funds sucks, etc etc. and finally – tell the UN it needs to be headquartered where the most problems are so they can be of help such as Africa or the Middle East and get them out of here….I think the SEIU and the AFL-CIO should go with them.

      Glynnda

    4. Pragmatic in Texas says:

      Obama blaming the economy on Democrat losses during the past election just proves how ineffective and weak he is as POTUS. What scares me the most is after the last stimulus caused unemployment to rise 3%, he STILL believes that printing more money we can't back up with capital is the way to solve our economic problems. He just doesn't get it, and never will.

      All I can hope for is a true economic conservative is elected in 2012.

    5. Tony, Brick, NJ says:

      Whether you agree with President Obama's policies or not you need to respect him as a person and as our President. After all, he is our President – both yours and mine.

      Your constant reference to him as "Obama" instead of "President Obama" is very disrespectful. Your reference to the health care program which, by the way, is presently the law of the land, as "Obamacare" is also disrespectful.

      I'm going to say what many Americans are thinking but don't want to mention: if President Obama was white he wouldn't be putting up with one tenth of the disrespect he receives not only from the Heritage Foundation but from Conservatives and the Tea Party as well.

      He is our President! Start giving him the respect that both he and his office deserves!

    6. Blair Franconia, NH says:

      Yesterday there was a debate on Fox & Friends Sunday, there was a debate about

      Obama and the Democrats' chances and whether Obama will be like Ronald Reagan

      and Bill Clinton. As for Obamacare, that's either dead, dying, on life support, or in the

      Witness Protection Program. However, for some members of Congress, Barney Frank, Nancy Pelosi, and Harry Reid, it's back to the future. Why? Because the Democrats have a death wish. They were in denial about William "Dollar Bill"" Jefferson, who was caught with 90 Large in cold, hard cash in freezer, both Barney

      Frank and Maxine Waters were in denial about Fannie and Freddie, Barney Frank wanted to "roll the dice" when it came to home mortgages, (his words not mine), and like Connecticut's senior senator, he was an FOA, (Friend of Angelo Mazillo), the founder of Countrywide Home Mortgage Company. What did Barney Frank and other members of Congress do? They got preferential treatment when it came to

      getting mortgages____if you or I did what what our public masters are doing, we'd

      be put in the deepest cell in Leavenworth. We also tax cheats like Tim Geithner and

      Charles Rangel, either enforcing, or writing, our tax laws. Then there's another ethically challenged "public servant." Her name is Maxine Waters. Maxine Waters intervened in a bank that her husband has a seat on its board. This is the same Maxine Waters who believes every conspiracy theory out there about the federal

      government experimenting on black people and black neighborhoods. Next time,

      we go after Frank, Pelosi, Reid, Rangel, and Waters, and let them establish their own law firm in San Francisco. We need Obamacare's higher taxes like we need the proverbial hole in the head.

    7. Dennis Georgia says:

      These traxes are essential to this country, when allowed to return to their original level thsi country will hurt like never before. the DEATH TAX should be ended for ever, we should not have to give the "guvment" 55% of what we have made in a life time. Taxes were already paid on this. The dems and obama are not for the common person, they only know tax and spend. One of the things that got this idiot in office was his platform "spread the wealth", people sucked it up like sugar water. This was also one of the platforms of Ho Chi Min in North Vietnam, a Comminust leader. One does wonder where obama got his platfrom from.

    8. Brian says:

      It is past time to dismiss the attempted propagandizing on behalf of this administration by the legacy media and recall the principles upon which our republic was formed. The stakes are too high for two more years of "give him a chance". This has to be the most expensive on-the-job training exercise of all time.

      We can no longer afford government as a charity nor can we afford to waste money on the square-peg-in -round-hole futility of turning Constitutional functions into social engineering efforts. As we attempt further these two fantasies the bill only gets bigger.

    9. Judith in Michigan says:

      President Obana's statement that "I thought the economy would have gotten better by now…" was unsettling, to say the least. It says, to me, that the best and the brightest individuals he has advising him really aren't so bright after all, or the statement is actually a "red herring", meant to distract and mislead the citizens.

      Assuming the advisors and Mr O are intelligent people, then the only conclusion is that the policies they are pursuing are deliberate moves to degrade America.

      There is quite a lot of talk going on, world-wide, about One World Governance. Perhaps The United States is being prepped for just this occurrence.

      So, will this administration follow the sound advice of The Heritage Foundation's experts, which are also being echoed by other fiscal experts, or will it keep on it's course toward economic ruin that will surely follow?

      Well informed Americans figured out the answer and spoke on Nov 2nd.

    10. George Dubendris, Ru says:

      Once again it's all part of Obama's plan to achieve world economic parity.

      Not by helping to bring the rest of the world up to our standard but by bringing us down to theirs.

      It's all in ," The Roots of Obama's Rage."

    11. Frank Roberts, Gaine says:

      The fair tax would stop this nonsense,raise more income, and create the best business atmosphere in the world.

    12. Ken Jarvis - Las Veg says:

      TAX THE RICH – THEY HAVE THE $$$.

      The GOP and HF makes it sound like Obama

      Invented taxes.

      ATTENTION ALL – OBAMA DID NOT INVENT TAXES.

    13. Dave Provo, UT says:

      I have yet to hear the president or any leader in his party say "We need to cut spending or we need to reduce the size of the federal government." Their mind set is print phony money, raise the debt ceiling, find new sources to borrow from, buy up our own debt, and the cure all, tax the rich. We will soon see hyper inflation and all its ills if we do not start cutting our federal spending say by 10% per year for 10 years. It will be hard to see all that delicious pork disapear but our survival as a nation depends on it. I would even take a cut in my social security IF all other spending programs were cut first, including government employee salaries.

    14. William Person says:

      I have gone to the Tax Foundation's web site to look up stats regarding the number of people in this country who make over $250K per year (under 4 million people). That was about a year and a half ago so the stats they ahd were for 2006. In my layman's attempt to get the facts, it appears there is not enough of them to come close to covering the spending Washington is commited to. That only means that eventually we all will pay for this spending. Also if you confiscate every dollar the "rich" make you still can not cover this spending. Heritage, why don't you put up the numbers–you can't fight the numbers!!!!!!

      DO the MATH!!!

    15. Jan Rose Cunningham says:

      Watching Cspan this morning I saw your Texas man "Fed Up." He went to some tea party events but must not have listenend. First: small government which balances the budget. This does not mean throwout the baby with the bath water. Most Americans like Social Security- fix it. Goldamite Paulson had no problem finding money to bail out the rich with taxpayer funds. Second: Do not force citizens to pay for insurance. This is really forcing citizens to pay for bonds to cover private equity funds.

    16. Drew Page, IL says:

      I would agree with all of the Heritage recommendations, but do you think BHO will? I don't doubt the Heritage facts and figures, but do you think they will make any difference to BHO?

    17. TREVOR MERCHANT BRON says:

      FROM THE OUTSET I WERE AWARE THAT THIS MAN BARACK OBAMA OF WHO I HAVE BESTOWED ON HIM THE TITLES OF A GODHEAD, EMPEROR .AND MESSIAH DUE TO THE MAIN STREAM MEDIA OF THE FOURTH ESTATE THE WALL STREET BANKERS SUCH AS GOLDMAN SACHS AND OTHERS WHOM GAVE TO HIM HUGE SUMS OF MONEY TO AMOUNTS OF THE SEVEN HUNDRED FORTY NINE MILLION DOLLARS IN THE PRESIDENTIAL ELECTION OF THE YEAR 2008 AND MANY MANY OTHERS OF THE SOCALLED ELITES AND INTELLECTUALS ALL OF WHOM HAVE AND CONTINUE TO THIS DAY TO INDICT AND CONVICT ANYONE EVEN MYSELF A BLACKMAN FROM THE DOMAIN OF JAMAICA FOR CHALLENGING AND QUESTIONING BARACK OBAMA YOU ARE LABELLED AND CALLED RACIST .MORE TO COME TREVOR MERCHANT .MONDAY NOVEMBER 07.2010

    18. wallyblu says:

      Does anyone really think that the rich will pay the tax?

      It's like putting a tax on eggs, do you think the chickens will pay the tax, no it will be the people who buy eggs that pay the tax.

    19. wallyblu, Zion IL says:

      Does anyone really think that the rich or businesses will pay the tax?

      It's like putting a tax on eggs and expecting the chickens will pay the tax. The people who buy the eggs will pay the tax.

    20. T.Walt, California says:

      @Tony,NJ You are way off. First, the article refers to Obama as 'President Obama' several times. Second, you can criticize without being disrespectful. To stand idly by as our country is transformed into a socialist nation by the current administrations policies is not something you can expect from those of us on the right. And btw, Bush was disrespected by the left every time he turned around. Finally, why is it always the left that keeps reminding us of the color of Obama's skin. Could it be they are projecting their own racism?

    21. john arizona says:

      Tony, Brick: Oh please, get off the "ain't it awful how we're treating a black man" campaign. For the over whelming number of people in the USA, they don't care if the president is black, yellow, green or orange. When a person with the power of the presidency tries to stomp on the constitution, lead the country into socialism, and use his (or her) office for personal gain, they deserve to be disrespected, and BHO has done it all!

    22. john arizona says:

      Ken Jarvis: What constitutes a rich person, and what are you planning to do after you've taken all the rich people's maney.

      BHO didn't invent taxes, but he has certainly taken taxation to another level.

      Remember what Margaret Thatcher said: "Socialism is good until you run out of other people's money." You and BHO don't think we will ever run out of other people's money, so you would keep taxing all of us who do pay taxes, so we can "take care of" the 47% of the people in the USA who don't pay taxes. Wake up and quit drinkling the kool aide, Ken.

    23. Tom Rankin, Morgan C says:

      Audit the Fed

      End the Fed

      Prosecute the Fraud

    24. Ben C. Ann Arbor, MI says:

      Yes Ken, the rich have money – problem is there are not enough rich with enough money to cover the debt. We don’t have a federal revenue problem – we have a spending problem. Cut the spending first – then we will talk about federal revenues.

    25. Elaine Lincolnton NC says:

      I'm sorry but this president does not get off the hook that easily. He is responsible for all our economic problems at this time, he created them.

      At the rate he is going his aim is to totally destroy the economy of this nation plain and simple.

      "George Soros: needs to be arrested and tried as an Insurrectionist along with all those who assisted in this countrys downfall. I have been saying since G. Bush's second presidency that Soros is a danger to us all. Insurrection and Treason are still crimes against this nation and punishable in a court of law.

    26. James Milligan Kathl says:

      Our jobs are needed but not at the expense of our independence. If our private sector goes back to work, we the people will flourish again and so will our nation. If the job market only allows for union jobs then we the people will not flourish, unions and big Gov't pollicies will florish , and we the people will be made dependents on unions and big Gov't. and this is unconstitutional……

    27. Pete Turano, Albuqer says:

      I like your idea of reducing corporate tax rates to 25%. What effect would lowering rates even lower, say 10-15% for companies that produce things that the USA doesn't manufacture anymore, such as clothes, shoes, TVs and such. Might this ecourage corporations to stay in the USA, keeping manufacturing jobs here.

    28. CS, Ohio says:

      What about the making work pay tax credit? This is schedule to expire at the end of year. This will result in a tax INCREASE to workers.

    29. Neal, Jonesville, MI says:

      On top of reducing Corporate taxes, Congress should pass a bill to allow multi-national Corporations to bring foreign after tax profits back home tax free, to the USA. This will reduce the incentive for companies to spend the money on new plants and other things in the country where the funds are currently. This will have major impact on exporting jobs. This was done on a temporary basis back in the 2001 to 2003 time period. I believe it should done rapidly and permanently.

    30. Dick Hartman Co. says:

      Tony Brick: This is not a racial issue, he is half white!! I for one; of millions, am sick and tired of the race baiting. "YOU MUST GIVE RESPECT TO GAIN RESPECT"….

    31. Robert Perkinson-St. says:

      Please stop conflating "taxes and "tax rates". Increasing tax rates does not necessarily increase taxes. Actually when tax rates were reduced, in the Busch Tax Cuts, tax receipts increased. It would not be surprising to find that increasing the tax rates would reduce tax receipts.

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