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  • Morning Bell: Obama's Crony Capitalist Trap Door

    The Obama White House says it hates tax “loopholes,” and the American people abhor them with good reason. They’re the ultimate in unfairness, allowing those in the know to wiggle their way out of playing by the same rules that apply to the rest of us. That’s why, at first glance, the Obama Administration’s latest “framework” to cut the corporate tax rate while closing corporate tax loopholes might sound like a good twofer.

    Before you give the President a gold star for good governance, take a step back, turn up the lights, look around the room, and you’ll see that President Obama has replaced some of those tax loopholes with a giant trap door that’s just the right size for all of his political cronies to slip through.

    Here are the details of Obama’s latest crony capitalist ploy. Yesterday, the President proposed reducing the corporate tax rate from 35 percent to 28 percent. That’s certainly a landmark moment – a liberal President calling for a lower corporate tax rate is a Nixon goes to China moment. It’s also long overdue, considering that the U.S. corporate tax rate is the second highest in the world, making it nearly impossible for American companies to compete in the global economy. But here’s where the trouble begins.

    Under the President’s “framework,” he singles out specific industries he doesn’t like — oil and gas, insurance, and small aircraft manufacturers, for example — and proposes to close what he asserts are their loopholes, thereby raising their taxes. But with his other hand, he opens a trap door and waves his friends through, cutting their tax rates to 25 percent “and to an even lower rate for income from advanced manufacturing activities.”

    The President’s best friends get access to second trap door leading to even lower rates. Who slides on through? Those who qualify for tax incentives designed to “encourage investment in clean energy.” The net effect of all this tax reform subterfuge will be a free pass for the “right” industries, a downfall for the “wrong” ones, and a windfall for lobbyists who can get their clients through the trap doors.

    By the way, this new plan to make America’s businesses “more competitive” is slated to raise $250 billion over 10 years. You read that correctly: The President is trying to convince America he is lowering taxes to make America stronger by, well, raising taxes to make America weaker.

    Another example of how Obama likes to slam those who offend is a set of disastrous proposals for U.S. multinational corporations — companies that earn income at home and abroad. Today, if a company earns money overseas, it is taxed by the foreign government, taxed again at home, and then run through some convoluted rules to prevent double taxation. Instead of eliminating that domestic double tax (like most countries have), President Obama wants to tax foreign earnings even more heavily. He says he wants to prevent companies from outsourcing around the world.

    But instead of convincing those companies to keep their work in the United States, the President will encourage them to close up shop and sell the whole company to the highest foreign bidder. The result? A tax-induced fire sale on U.S. companies sold to foreign companies so that none of their profits will be subject to taxation, and U.S. tax revenues and economic fortunes will plummet.

    Next step? American workers will be left holding the bag. Remember that President Obama said he wants to raise corporate taxes on net. Combined with his budget proposal to nearly triple the dividend tax rate, the net effect is likely to raise the hurdle rate on business investment, which means less business investment. Less investment means labor productivity growth slows, and so wage growth slows. In other words, the President would leave American companies less competitive, and he would leave American workers with lower wages.

    Tax reform shouldn’t work this way. America shouldn’t work this way. The U.S. corporate tax rate is too high, and real reform can bring it down. Congress and the President should pursue revenue-neutral corporate tax reform centered on, reducing the corporate tax rate, and reducing the tax rate on small, non-corporate businesses as well, and work to make U.S. companies more competitive around the world. That’s a far fairer, far smarter plan than a trapdoor tax policy that benefits the few, the proud, and the privileged.

    Quick Hits:

    Posted in Energy [slideshow_deploy]

    94 Responses to Morning Bell: Obama's Crony Capitalist Trap Door

    1. Bill_n_Baltimre says:

      let's get away from the term "crony capitalism", and call a spade a spade – it's corruption.

      and Frank Luntz agrees.

      • Grey Dog says:

        Amen

      • Jeanne Stotler says:

        Ditto, call a spade a spade

      • Ken Jarvis says:

        "call a spade a spade"
        Is that meant to be Racist?

      • KHM says:

        @Bill_n_Balt,
        Well said! It is corruption on a grand scale.

      • Lula says:

        Obama is the world's biggest deceiver…a shameless liar ~ who is without a conscience ~ only the God less ones are capable of have no conscience. Anyone who agrees with this things is made of the cut of clothe, the godless! what can anyone hope to see and to her from someone like that? of course the untruth and hypocracy.

      • George Gallo says:

        Crony Fascism is suitable since the decisions of importance to firms or entire industries that affect the profitability to their investors are made by the administration czars, or if not made by them then overturned upon review. All for the good of, well, fill in the blank. Why is there little steelmaking in the USA since before the World Trade center was built out of Japanese girders? Look to the jawboning of JFK in 1960 that forced the players to abandon their capital investments required to stay competitive. And why do we build no hulls from the steel we do not make? Because the labor unions were coddled at the expense of Beth Steel once again, courtesy of a crony congress. Fascism, that is what we got, like it or not.

    2. Pamela says:

      If anyone still has doubts about Obama wanting gas prices to continue to rise, look at his latest tax “cut” proposal. Targeting oil and gas companies is no accident. Their tax hikes will be yours to pay at the pump.

    3. Cecelia P. says:

      God help us if this man gets re-elected.

    4. Dr. Pete Kleff says:

      Your analysis is spot on, but misses the underlying issue. The problem is that for a half century taxes have been used primarily as a social engineering scheme, rather than a revenue system. While Obama might be exteme and obvious in his method, he is far from the first politician to manipulate taxes.

      • NewLibber says:

        You are absolutely spot on. 70,000 pages of tax code support your assertion. But it is worse than a "social engineering scheme" – our tax code is nothing more than political payoffs for votes, from all ends of the political spectrum. The good 'ol boys (and gals) in Washington had to politically destroy Herman Cain, because he wanted to turn the lights on in Washington with a flat tax – no more loopholes, credits, deductions, etc. – another indication that your statement is on the right track…

      • Ken Jarvis says:

        What we need is a NSTx – National Sales Tax
        10% NSTx = 8% to the treasury
        1% = to soc sec
        1% = to medicare
        A tax paid when $$$ is spent.

        • Doug Nicholson says:

          The FairTax is the way to go. More info at: fairtax.org

        • Dave Roberts says:

          The one post of yours I agree with … almost. NSTx is the fairest way to tax the electorate, but 10% won't come close to supporting the bloated government we currently have … or are you proposing that the government should shrink to live within the 10% that you proposed? If that be the case, then carry on, Mr Jarvis!

        • DMJ says:

          I'm all for this as long as we get rid of the federal income tax at the same time. No more spending hours doing tax returns and no more IRS with the power to destroy lives.

      • Joan says:

        He may not be the first politicia to manipulate taxes, but he certainly is the worst and most expensive. We have to look at the future and Obama CANNOT be it or we will (the middle class, such as it is) will all be living on the streets while he and his cronies will be laughing all the way to the bank that he owns.

      • Paul G. Littlefield says:

        Right on Dr. Kleff, this was one of the early abuses of the Constitution. A second to it, is the practice of "Private Legislation" where by if you make a payoff, you get a law passed that lets you bypass IRS regulations. I think alot of it has to do with sheltering large sums of money for pension purposes. The motivation for it is confiscatory taxes and being taxed more than once on the same earnings. The attribution of "GREED" is misplaced. The greed is the legislaters' greed for power.

      • Donald Bly says:

        People need to understand what Obama, "Citizen of the World", means when he talks about wealth redistribution. He means FROM America TO the rest of the world.

    5. Lee Farquharson says:

      If this nation insists on taxing income, personal and corporate, then the only fair way to do this is a flat tax on gross income (no deductions at all) and the rate be set to a reasonable level such as 10%. We need to make this country a tax haven for businesses.

      • Clearhead says:

        I presume you meant "NET" income, not "gross", as in some instances taxing "GROSS" income would almost preclude any "NET" income.

    6. Paul says:

      I agree with this new Obama TaxCare article! What can we the people do to stop it?

      • Robert C. Whittaker says:

        There is not much anyone can do about Obama's agenda. Have you noticed that the Department of Justice, Home Land Security, the FBI, at least three Justices and numerous members of the Senate and House are in Obama's hip pocket They are covering everything he does and wants. Would not surprise me if the election isn't already fixed as well. What say you ?

        • Jeanne Stotler says:

          The sad truth is George Soros is behing all this and is laughing at how easy it was to do it. Just read "Shadow Party, Shadow Goverment" Now is the question HOW DO WE STOP THIS??

    7. Red Hawk says:

      Why would anyone ever give Obama a gold star for anything related to his body of work as the president?

      • Jules says:

        Cuz they are clueless. They believe everything the MSM puts out, at the behest of the Ovomit administration. Sheeple, a gentle word to describe the fools who ascribe to the current prez's agenda as being good for this nation.
        Liberalism is a mental disorder.

      • Ken Jarvis says:

        Obama gets a GOLD STAR for his Constant fight with the
        Do Nothing GOP Congress.

        • DMJ says:

          Congress was supposed to be "doing nothing". It was supposed to be extremely difficult for Congress to get anything done because the Founders knew that the more Government gets done, the worse it is for the People.

      • Donald Bly says:

        Haven't you heard… Everyone gets a gold star… no matter how crappy your work… its so everyone has good self-esteem… you don't want O'bummer to not get a star? Do you?

    8. glynnda says:

      It will be up to the corporations by voicing their displeasure and 1. NOT contributing to his campaign and 2. take this to court, should it be passed. Crony capitalism is a nice word for corrupt…..it's time we start calling it what it is…..are we living in the Tammany Hall days again?

      Can we say GE, GM, SOLYNDRA??????? all of these companies did and will give back to his campaign for showing this favor to them. In my opinion Corporate America or any other interest should not be able to give to any political entity…..only private citizens and that should be limited….not to a percentage but to a dollar amount.

      Glynnda

    9. Capitol Rush says:

      Hey Brownfield:
      Stop trying to fix the unfixable. The U.S. tax code is unfair, divisive and antiquated and it fuels political class warfare. We need to move from a tax system based on income to a tax system based on consumption. Most of the Eastern Bloc countries in Europe who embraced capitalism and democracy rejected the income tax system of the U.S. and embraced a tax system based on consumption and they are all flourishing. The only way to save this country is to adopt The Fair Tax system.

      • Brenda says:

        Europe's consumption tax is added to their already existing sales tax. It is an added tax not the only tax.

    10. jack says:

      I expected better from Heritage F., not political rubbish. Congress passes the tax laws, not Obama. He just signs them. I had watched with Shock and Awe when during the Bush years, our tax payers money was wasted on the businesses that supported Bush campaign. Nothing changes, not because Obama or Bush are right or wrong, but because Heritage kind foundations are never fair, nor are they consistent. I feel Heritage foundation serves the need of their donors. So what is the difference between you and Obama or Bush? You are all corrupt.

      • Gary Smith says:

        Well Jack who do you think tells them boys what he would like and what he will do for them?? Imterested in your idea of a perfect world…

    11. Michael Rivers says:

      It's not capitalism if the government is rewarding some and punishing others. Crony capitalism is an oxymoron, just like socialist capitalism, jumpo shrimp, communist capitalism, old news, Chinese capitalism, and open secret. You can call a dog a cat, but it won't make it bark. Call it what it is–crony socialism!

      • JohnD says:

        I couldn't agree more! This is crony socialism, just as things operated in the USSR, and probably still do in Russia.

    12. inverbrass says:

      Unfortunately the only options available to us are impeachment or defeat him at the polls. This is what happens when those who vote for a living outnumber those of us who work for a living, a triumph of those who do not think critically over those who do.

    13. bonner83856 says:

      Mr. Obama is truly an evil man and pathological liar. What this article did NOT mention, or I did not see it, is that most of the people waved through the trap door are union employers. When Heritage (?) states it is "large aircraft manufacturers" who will get the nod…they are the employers of truly gestapo, high contributing unions versus a mom and pop shop. Lord I wish Santorum or Romney had been decent, straightforward fist-pounding Republicans.

    14. DK Wog says:

      I read this and wanted to throw up. Increasing gas prices is exactly what Obama wants! He wants "Green Energy", so if he strangles the oil and gas industry, people will be forced to buy "Green (aka-more expensive) Energy". So far his record on green energy stimulation is not very good though.

    15. minuteman55 says:

      President Obama has never believed in the free market system. All you have to do is read what he has written and listen closely to what he says. So why should he start now. He is trying to appeal to the independent voters. Appearing to be centrist and pro business which is so very far from the truth.

    16. Curt Krehbiel says:

      "Tax reform shouldn't work this way. America shouldn't work this way. The U.S. corporate tax rate is too high, and real reform can bring it down."

      Corporations are tax collectors not payers. Taxes to a corporation are a cost of doing business and are passed on to the consumer just as are other costs of production. The consumer pays the corporate tax when purchasing the product produced by the corporation. Corporate taxes serve only to increase the price of the product making it more expensive in foreign markets with lower tax rates.

    17. Clearhead says:

      “and to an even lower rate for income from advanced manufacturing activities.” For instance, Chevy Volt, Solyndra,etc.

    18. toledofan says:

      Hopefully, the historians, will document all of this corruption and identify Obama and his administration as the most corrupt in modern history. The only alternative is to give him the boot in November and if we don't do that, America as we know it, will be gone forever.

      • Christine says:

        I agree. I am still saddened by people and their "ignorance". I have a lot in my family, and I just want to spit. There is nothing I can do or say so I just pray. Well 2012 is supposed to "call" out all of this corruption, worldwide. I can only hope and pray it does. We all deserve to have governments that have integrity, and do what is best for ALL people. Enough is enough with politics as usual. We were not born to serve our government, and if Obama gets re elected, that is exactly what we will be doing. But really more important is that we kick out all that oppress "We The People" and vote for people who have the courage to make the tough decisions, and make our government smaller. It is not sustainable the way it is going.

    19. boberic says:

      Something else to consider. One of yhe unintended consequences is that because of ths 49% tax in dividends is that corporations will simply stop paying dividends, And plow the money back to increase profits.

      • chris says:

        …and investors will leave because they wanted dividends but can't have them anymore, leaving the companies with less actual funding…

    20. haroldson says:

      Any thing obama does is to further his socialist agenda, Grease some cronies palms or buy some votes or just con the people of America.. The truth is not a part of his being, He has lied every since the first of his run for office, Never stopped yet.all. , lies and why he is not in prison is beyond me, any one else would have been run out of the country.

    21. Dennis Dybicz says:

      First of all, why do we keep referring to this puppet as "President". After all, the liberals referred to President Bush as Mr. Bush. Besides, this fraud in the White House is nothing more than a slick talking puppet of behind-the-scene conspirators who are out to destroy this great country. People need to stop blindly supporting him at the ballot box, open their eyes, ears and mind to realize he is helping to sabotage this country because he does not like America. He has slick people putting words in his mouth (actually, on the teleprompter) to mislead people. People had best stop and think about what is going on. Remember, if we have a gov't that can give you things because it wrongly takes from others, that this same gov't will one day take back what it has given to buy your vote. Do you really trust this administration?

      • Christine says:

        I know Dennis. It is very sad that people believe all that he says. My brother believes everything he says. And he is an intellect. Which is why he thinks that oil companies are evil, and corporations are out to screw everyone. I want a government that takes responsibility, and remembers who they work for. I am praying that 2012 brings an end to our evil empire, meaning corrupt government, and puts people in office that are committed to make this thee greatest nation. We are the example for the rest of the world, and the rest of the world can prosper under proper leadership. He does not even deserve to be in office. He is a joke. I pray to God that whatever this clown is hiding, it gets blown up in his face! Because I have never seen such disgust over a president by the people. The media, yes, not the people.

    22. Obama's solution to outsourced compaines- raise their taxes until they are forced to sell to foreign bidders, when they could have been convinced to keep their work in the US to keep the US competitive in the foreign market. One more step to diminishing our status as the world's greatest nation. Sad.

    23. CPB says:

      wow, Would hope the US Chamber of Commerce speaks up on this

    24. Seth Warner says:

      Careful: This statement
      "By the way, this new plan to make America's businesses "more competitive" is slated to raise $250 billion over 10 years. You read that correctly: The President is trying to convince America he is lowering taxes to make America stronger by, well, raising taxes to make America weaker." conflicts with the Lafferian view held by many Heritage followers that a lower tax rate will increase business activity and therefore increase tax revenues.

    25. jlo says:

      In the your first paragraph you commend Obama for proposing a “framework” to cut the corporate tax rate while closing corporate tax loopholes . I strongly agree with this sentiment. Later, however, you chide Obama for increasing revenues by $250 billion over the next 10 years through that very same proposed "framework". If tax rates are reduced, isn't the $250 billion in increased revenue the result of closing looplholes? I thought the whole idea of closing loopholes was to generate revenues by eliminating unfair (and unethical) tax advantages. If so, the increase in revenue associated with closing loopholes is a good thing, not a tax increase as your article implies. I'm no Obama fan, but this kind of doublespeak does Heritage and the conservative cause no good whatsoever.

      • ThomNJ says:

        Take a look at it again. The article points out that it is SELECTIVE taxation of those businesses that the left doesn't like; so the increase in taxes paid is born on the backs of industries hussein would like to punish. You can see it in obamacare with the new tax installed this year on medical device manufacturers, because they were the one group that chose to buck the legislation early on. hussein has said – before he was president – that he wanted to hurt the oil and coal industries – that is what he is doing – or wants to do – and the idiots in Congress, on both sides of the aisle – are complicit.

    26. Seth Warner says:

      Careful: This statement
      "By the way, this new plan to make America's businesses "more competitive" is slated to raise $250 billion over 10 years. You read that correctly: The President is trying to convince America he is lowering taxes to make America stronger by, well, raising taxes to make America weaker." conflicts with the Lafferian view held by many Heritage followers that a lower tax rate will increase business activity and therefore increase tax revenues. It is 180 degrees off course.

    27. guest says:

      Is there any reason that American companies cannot move their headquarters to countries that have a more favorable tax rate?

    28. Lloyd Scallan says:

      Does it not seem strange that Obama is making policy that flies in the fact of most Americans, doing so now, just before the November elections? Could it be that the "fix is in". That the DNC has got the elections so wired that there is no chance that Obama will lose. Almost every day another distortion from Obama and his lackeys. Is he overloading the system with so much B.S. that the people cannot or will not keep up? Then when everyone is so sick of the lies, they just give up trying to understand it all. That's when Obama will strike the final blow that will collapse this nation.

    29. Jeanne Stotler says:

      This person in the WH was give a free pass, no other presidential candidate has gotten a free pass on revealing their past, grades, etc. Today we still know very little of the truth behind BHO and even if he is eligible to sit in the oval office. Let's face it, we've been had, Geo. Soros (read Shadow party, shadow Goverment) has done a great job and all the lemings fell in line. Liberals hate free thinkers, because we tend to rationilize our thoughts, we ask questions and seek truthful and rational answers. We need to revamp our schools and universities so that our younger citizens can learn the true history ofthis country and compare it with the history of Communism and other regimes.

    30. MJF in CT says:

      Time to get rid of Mr. Obama. The Liberals had their fling, now we have to pick up the pieces – and we will!

    31. OBAMAGOTTAGO says:

      I continue to marvel at how perfectly incompetent Obama is in his misunderstanding of business related, foreign affairs, and social issues — to name a few. His ideals and beliefs are the absolute perfect product of having had dysfunctional rearing, numerous associations with radically maligned and disconnected individuals, the total absorption of radically socialistic principles, and sadly, a non-believer in the Divine Providence, in my opinion. Had he not the false self-protecting shell of a truly narrcisstic individual, perhaps by now; after three and a half years of everything he has tried to implement having functionally proven to fail, he may have admitted to himself as a total failure and see how greatly he has damaged the American people who so blindly allowed him to ascend to power. We are becoming a god-less society and what we are now living as a nightmare with Obama, does not speak well for the will and moral structure of our lost ways.

    32. Peggy G. says:

      How tragic for Americans and ruinous to our country that we have a person in the Oval Office whose beliefs run totally counter to free enterprise and to our Constitution. Through taxes and regulations and brutish power grabs that are unconstitutional, he has wrecked our free enterprise system. He has chosen far leftist czars (how appropriate a term!) to rule our economy, our healthcare, and our lives and to do end-runs around our Congress. Now, after ramming his socialist healthcare down our throats, he is forcing green energy on us — even though it's incredibly expensive, inefficient, and premature and there is ample evidence that man-made global warming is a lie that only enriches screwball people like Al Gore. Solyndra cost us millions of tax dollars before it went bankrupt, and there are many other taxpayer subsidized green energy companies who will also go belly-up after they take our money and run. The most transparent administration in history is in reality the most corrupt. The "hope and change" president is looking for a new slogan for his campaign. With the rampant corruption and our economy in a shambles, what comes to mind is "crash and burn."

    33. LynnAtlanta says:

      So, how will our new conservative President change all of this? Can he?

    34. KC says:

      May be our government will push the smart thing to do – establish the flat tax that is fair to all. No more tax credits, no more exceptions and multitudes of deductions. No more letting 50% of America off the hook from paying taxes. Instead, promote the flat tax and decrease the need for IRS, tax attorneys, and the complications of the tax forms.

      Using a simple example of 10% income flat tax (I am sure the real number is much less), the millionaire who brings in an income of one million would pay $100,000. (This should make the liberals happy) The family who brings in an income of $250,000 would pay $25,000. The family who brings in an income of $50,000 would pay $5000. Religious organizations (all of them) would pay on the revenue or income made. All businesses (profit and non-profit) would pay tax on revenue. Even the poor who are receiving all the benefits from those who pay a lot in taxes would pay the flat tax based on the equivalent amount of benefits received. They would pay in a monetary form or through civil work provided to their communities.

      State income taxes would be based on the same principle. The additional taxes would be FICA, and Medicare. If you want these entitlements, then you pay into the system. Gross receipts tax would be added where needed.

      We can no longer survive with an America based on entitlements. Everyone owes and everyone pays in one way or another. The flat tax is simple, fair to all, and would provide financial stability for the government. There would be enough tax based money to adequately fund our failed schools and failing infrastructure.

      • DMJ says:

        A flat tax would still need the IRS. Any income tax requires a bureau to make sure everyone's paid and check the accuracy of their income. IMHO, where we work and how much money we make is none of the government's business.

        We need a consumption tax ONLY. We would still need a bureau to collect the tax businesses collect. However, the people's personal information would stay out the government's prying eyes and people's lives would not be put at risk by an overpowerful government agency. The tax collecting bureau would not have to be as big as the IRS is now because the amount of entities would drastically decrease.

        The best case scenario would be to make the consumption tax a Constitutional amendment which includes the tax rate staying at a certain percentage FOREVER.

    35. KC-NM says:

      May be our government will push the smart thing to do – establish the flat tax that is fair to all. No more tax credits, no more exceptions and multitudes of deductions. No more letting 50% of America off the hook from paying taxes. Instead, promote the flat tax and decrease the need for IRS, tax attorneys, and the complications of the tax forms.

      We can no longer survive with an America based on entitlements. Everyone owes and everyone pays in one way or another. The flat tax is simple, fair to all, and would provide financial stability for the government. There would be enough tax based money to adequately fund our failed schools and failing infrastructure.

    36. KC-NM says:

      Using a simple example of 10% income flat tax (I am sure the real number is much less), the millionaire who brings in an income of one million would pay $100,000. (This should make the liberals happy) The family who brings in an income of $250,000 would pay $25,000. The family who brings in an income of $50,000 would pay $5000. Religious organizations (all of them) would pay on the revenue or income made. All businesses (profit and non-profit) would pay tax on revenue. Even the poor who are receiving all the benefits from those who pay a lot in taxes would pay the flat tax based on the equivalent amount of benefits received. They would pay in a monetary form or through civil work provided to their communities.

    37. Alcon says:

      This president will not be satisfied until he has successfully destroyed our country. He is obviously unable to tell the truth about anything and has total disregard for the constitution, American citizens, or our way of life and the thing that made this country great.

    38. Harry Adams says:

      It is plain to see; Obama's objective is to bankrupt America.

      • judith says:

        Q:so where did the frist 10 trillon dollar debt come from , who gave tax break to ship jobs overseas,who refused to open our oil reserves when gas prices where over 4.00 a gallon in june of 2008.who wire taped every america.who lowered the tax rate to the lowes in 50 years to the job creaturers.but continuously lost millions of jobs year after year.who didnt captsure osama bin laden,but stood in front of a baner the said
        mission accomplished.
        A:BUSH

        • DMJ says:

          How do these facts take away any of the misdeeds that Obama has done? Neither Bush president was a conservative. IMO, who needs Democrats when we have the Bushes? Bush 1 gave us the war on drugs, which is a Constitutional nightmare, and Bush 2 gave us the Patriot Act which started this whole TSA abomination that allows our citizens and tourists to be molested.

          Obama is a disaster for our country. Nothing that any other person has done will alter that reality.

    39. So again, an example of Socialistic Thinking. I'll break this down to simple terms so the monumentally naive can understand: Child A works hard. Studies every night, turns in her homework on time and gets straight A's on her tests. (because she studied) Child B goofs off, does the minimum required to get by and fails all of her tests. According to our administration, the evil, greedy child A should be forced to take child B's tests for her because it's not fair that child A makes A's while Child B is left behind. Now Child A must work twice as hard to get the same grade and therefore learns that it would be easier to be like Child B. Pretty soon, Child A becomes extinct…

    40. guest says:

      Jack is correct, Congress passes laws, not the president, so many of you on here are so hate filled and delusional it is sad.

      • Wayne Peterkin says:

        Congress may indeed pass laws but Obama has been dedicated to circumventing Congress when Congress hasn't jumped at his command. You are right about one thing. I do in fact despise those who are working so hard to destroy my nation.

    41. He is a politician what do you expect.

    42. Walter says:

      Article 1 Section 4 The President, Vice president and all civil Officers of the United States, shall be removed from Office on Impeachment for, and Conviction of, Treason, Bribery,or other high Crimes and Misdemeanors. Guilty as charged. God help in this time hypocrisy, and loss of wisdom.

      • Jeanne Stotler says:

        The only problem, it's the Senate who hears the charges, Reid will not let this happen, The house can file all the articles of Impeachement they want, they still have to get by the Dems. in the Senate to be heard.

    43. RG Schmidt says:

      Why in Hell is he even listened to when making these proposals? The Constitution is quite clear on where the responsibility–and the authority to impose taxes lies. Will we ever have a Congress with the backbone to take back their rightful jobs? This didn't start with Obama, it's been going on far too long. We need a Speaker with courage. Maybe we can borrow Margaret Thatcher, she's not doing anything.

    44. J Harrod says:

      I'am appalled that someone has yet to accuse BO of treason and taken appropiate action to stop him.

    45. Andre.malloy says:

      why not bring it all down (taxes) let's start 1976 befor all the madness started…BECAUES WE CAN DO THAT! leave salaries as is…companies would have more time to exploreable profitable updates, (should be mandatory) . The Oil, Gas, elect. and Insurance companies have taken advantage of us for years. pushing people to brink of depression and some cases suicide. Bringing business home that should never have left is dound business sence, who are overseas companies selling to (co. made it selling to us before) or will foreign co.;s have better equipment than we will?

      "President Obama wants to tax foreign earnings even more heavily. He says he wants to prevent companies from outsourcing around the world." Yes COME HOME…lry the targeted money pay off our bills
      we can pay it back Borrowing from ourselves. O well.

    46. Wayne Peterkin says:

      I have long favored a flat tax for individuals. No deductions, no exceptions, no loopholes, applied equally to everyone. I also favor a flat tax for companies, same rules for everyone again. As far as I'm concerned, that is the ONLY fair tax system.

    47. Blair Franconia, NH says:

      We should get rid of Obama's crony capitalism.

    48. rodjo says:

      What I find difficult to understand is, why hasn't the Senate and Congress step in to stop this atrocity against our Constitution. Are they condoning this Administration actions? If so why?

    49. Peter says:

      Mr. Obama intends to punish his enemies and reward his friends; no matter how much damage he does to the economy.

      The administration is filled with folks that are ignorant of how an effective economy works. They believe that a good economy is all about consumption spending. For example, most recently, Mrs. Valerie Jarrett stated that paying the unemployed stimulates the economy. She cannot fathom that such a program steals from potential investment capital to pay the unproductive. In my experience, the Supply side economy has always worked.

    50. GRACE E. PRATTI says:

      OBAMA NEEDS TO GO INTO SINGING I SEEN HIM ON TV , NOT PRESIDENTIAL , HE DOES NOTHING TO HELP AMERICA
      BUT TAKE IT DOWN, GAS IS GOING UP, HE WANTS TO TAX , HE DOES NOT CARE FOR THE MIDDLE CLASS OR RETIREE'S ONLY HIS OWN AGENDA. I WISH PEOPLE WOULD OPEN THERE EYES AND SEE THE TRUTH WERE WE ARE GOING WITH THIS PRESIDENT. HE IS RUNNING THE WHITE HOUSE AS SHOW BUSINESS, ENTERTAINMENT. I DON'T SEE EITHER PARTY DEMOCRACTIC OR REPUBLIC AT THIS TIME DOING WHAT NEEDS THE MOST, GET AMERICA ON TRACK , PAY OFF THE DEBT AND GET PEOPLE WORKING. CUT OFF PORK BARRELS AND EARMARKS WASTEFUL SPENDING.

    51. Jeanne Stotler says:

      For all wh want to Impeach Obama, and I do aswell, Even if the House filed articles of Impeachment, they have to go to the Senate and let's face it friends, Reid AIN"T going to allow it, he should be impeached along with Pelosi, as well

    52. Jose Luis Lira says:

      Obama may be capable to sign a song,but he cannot lead. And his proposal to reduce the corporate tax, amounts to the same of that of the legendary/historical Greek’s gift to Troy … Obama’s Troyan Horse.

    53. Scott Greene says:

      The current Income Tax system has been falling apart for years!

      The fact that the code is almost 75,000 pages long is bad enough, but that number does not even take into account the thousands and thousands and thousands and thousands of pages of tax publications, instruction booklets and revenue rulings nor the thousands and thousands and thousands and thousands of pages of tax court cases.

      Thus the current Income Tax system has proven not to work and the problems it has are inherent within the mind numbing code itself. Just pick up and read any tax publication, tax court case or even the code itself. The whole thing is a mass of contradictions!
      Tax attorneys and CPA’s all generally disagree on what it all means and if you went to any of them for a consultation on a complicated tax matter, you would get entirely different answers. So to even to attempt to comply with the whole thing can cost a small fortune. So on top of the amount of tax you pay, there is the time and money it costs just to figure out how to comply with the whole thing.

      So it is obvious that the code cannot be fixed by adding more and more regulations to fix the earlier regulations. And on top of everything else, the current Income Tax code has evolved into a system that makes it illegal to not do your bookkeeping the way the government want you to.

      This is not a system of taxation that can sustain itself much longer and will eventually collapse.

    54. Paul says:

      Obama's picking of winners and losers and his global minimum tax is dead wrong. Just get big government out of the way.

      Indeed, Santorum's picking of winners and losers by offering a reduced tax rate for manufacturing is also misguided.

      Just lower individual tax rates while reducing the number of tax brackets to make the tax code as flat as possible while simultaneously clearing out the junk (i.e. carveouts, loopholes, deductions, etc.); and (2) lower the corporate tax rate for all corporations to no higher than 20% while also clearing out the above-described junk) so that GE and other companies don't end up paying any tax whatsoever.

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