Obama proposes populist economic policies
President Obama addresses Congress in his third State of the Union speech. / CBS
President Barack Obama struck a populist chord Tuesday night in delivering his third State of the Union address, vowing to build a nation where "everyone plays by the same set of rules" and declaring that all Americans deserve a "fair shot" at economic prosperity.
Obama pledged to revitalize key U.S. industries, saying that his economic blueprint "begins with American manufacturing" and calling for an economy that is "built to last." He said:
Think about the America within our reach: A country that leads the world in educating its people. An America that attracts a new generation of high-tech manufacturing and high-paying jobs. A future where we're in control of our own energy, and our security and prosperity aren't so tied to unstable parts of the world.
Some of Obama's strongest rhetoric centered on the politically contentious issue of taxes. Companies that "get tax breaks for moving jobs and profits overseas" shouldn't "get a tax deduction for doing it," he said. All multinational corporations should pay a "basic minimum" tax, Obama said, adding that "every penny" should go toward lowering taxes for companies that create jobs in the U.S. He also advocated providing tax relief for manufacturers, saying that high-tech firms should get "double" the tax deduction for producing their goods in the U.S.
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In another shot aimed at Republican policy-makers, Obama urged Congress to extend a cut in payroll taxes and called on lawmakers to let a tax break for high-income earners expire at year-end. GOP lawmakers have strongly opposed raising taxes on top earners. Such tax benefits increase the federal deficit and require cuts in other essential programs, Obama said in invoking billionaire investor Warren Buffett, who has expressed support for a so-called "millionaire's tax." He added:
Right now, we're poised to spend nearly $1 trillion more on what was supposed to be a temporary tax break for the wealthiest 2 percent of Americans. Right now, because of loopholes and shelters in the tax code, a quarter of all millionaires pay lower tax rates than millions of middle-class households. Right now, Warren Buffett pays a lower tax rate than his secretary. Do we want to keep these tax cuts for the wealthiest Americans? Or do we want to keep our investments in everything else -- like education and medical research; a strong military and care for our veterans? Because if we're serious about paying down our debt, we can't do both....
Now, you can call this class warfare all you want. But asking a billionaire to pay at least as much as his secretary in taxes? Most Americans would call that common sense.
As might be expected in an election year, Obama sought to contrast his policies with those of Republicans, pledging to "fight obstruction with action" and highlighting what he described as the administration's progress in reviving the economy. Businesses have created more than 3 million jobs over the last 22 months, the fastest pace of job-creation since 2005, he said.
To speed that recovery, Obama announced several initiatives aimed at creating jobs and offering financial assistance to struggling Americans. First, he pledged "in the next few weeks" to sign a presidential order eliminating red tape that impedes construction projects. As part of that effort, Obama encouraged Congress to finance such projects by allocating half of the funds he said the country will save by ending the wars in Iraq and Afghanistan, with the other half going to deficit-reduction.
Second, Obama said the government will launch a trade enforcement unit that will investigate unfair trade practices by "countries like China." Congress should ensure that no foreign company has an advantage over American businesses when it comes to accessing finance or new markets, he said.
Third, in a move to stem the tide of foreclosures in the U.S., Obama said he is proposing a plan that will give all "responsible" homeowners a chance to save roughly $3,000 a year on their mortgages by helping them refinance. Funding for the refis would come from collecting a "small" fee on big banks. He said:
No more red tape. No more runaround from the banks. A small fee on the largest financial institutions will ensure that it won't add to the deficit, and will give banks that were rescued by taxpayers a chance to repay a deficit of trust.
In a move likely to rouse the ire of environmentalists, meanwhile, Obama said he is directing his administration to open more than three-quarters of the nation's potential offshore oil and gas resources for exploration. But he also vowed to expand the nation's natural-gas and "clean energy" capacity. Obama said:
I will not cede the wind or solar or battery industry to China or Germany because we refuse to make the same commitment here. We have subsidized oil companies for a century. That's long enough. It's time to end the taxpayer giveaways to an industry that's rarely been more profitable, and double-down on a clean energy industry that's never been more promising. Pass clean energy tax credits and create these jobs.
Thanks to partisan rancor in Congress, amplified this year because of the November presidential election, Obama could find that his agenda is dead on arrival. House Speaker John Boehner was already on the attack earlier Tuesday, accusing the president of putting politics over efforts to forge bipartisan consensus on public policy matters. The House Republican told CBS's Scott Pelley:
I think it's important to note that the president checked out last Labor Day. He spent the last four months doing nothing but campaigning. He hasn't been engaged in the process. And if the president wants us to work together, it takes two to tango.
Obama also may not get much of a political lift from the speech. Polling data following previous State of the Union addresses show that presidents rarely get much of a boost in their approval ratings.
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Hey robbie -- it has NOTHING to do with hating anyone -- just wanting the wealthy to pay their FAIR SHARE, which is something you highly-partisan political hacks in the deep RED southern states will never understand!
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I'm interested to know what you mean by "fair". If the "rich" top 10% already contribute 70% of federal income tax, that leaves 30% of taxes to be paid by the remaining 90% of Americans. So what, pray tell, is your version of "fair".
Let's also assume that your version actually is fair. How much is their share? 80%? 90%? How much should you and I contribute? 10%? 5%?
The fact is that no tax increase that would actually pass into law would solve our problems. The only thing that will solve the problem, for those of us who like to keep our thinking based in reality, is to get government spending under control. Government does not exist to provide you with a bunch of free stuff, regardless of what Obama says. So stop expecting others to pay your way.
Seems that YOU 'think' it was fine for bush/cheney to do exactly that, since President Obama has been SHRINKING government while expanding private-sector jobs! Your fox/rush propaganda is getting very old!
Last year, we saw 1.9 million private-sector jobs created while 280,000 government jobs disappeared, just the opposite of your buddy bush!
Here's the facts robbie, and how bush/cheney oversaw TWO recessions and very poor job growth despite the housing bubble, and how job growth has continued from the deep hole in Jan. 2009:
http://data.bls.gov/timeseries/CES0500000001?output_view=net_1mth
In both 2010 and 2011, we saw our first increase in manufacturing jobs since 1997, after years of losing millions under bush/cheney.
The U.S. auto industry was on the brink in 2008 under bush, willard wanted to let it die, but President Obama made them restructure with major concessions by the unions, and now GM is back on top as the #1 auto company in the world.
I listened to the President Obama's third State of the Union Address, and I have come to the conclusion that he is a schizophrenic. He talked about everyone playing by the same rules, after giving out $100s of billions of taxpayer dollars to corporations of his choice while allowing other businesses to fend for themselves. He talked about reducing federal regulations on business, after burying American businesses under increased regulations contained in his disastrous health care law, He talked about national unity, after he has divided Americans and pitted one group of Americans against another for three years. He announced that "America is back", after burying the nation under deficit spending like no other President in American history. He announced "no more bailouts", after being the king of bailouts. He talked about energy independence, after stopping a oil pipeline that would have made American less dependent on middle-eastern oil and would have created more than 20,000 jobs. I have never heard a more twisted, muddled, and conflicted speech in all my life.
I don't get why so many people hate rich people. So what if someone took big investment risks, and had the business smarts to make a lot of money. Good for them. Romney released his tax returns for the last two years, and I understand that it shows that he gave more than 15% of his earnings to his church and charities. I would like to know what percentage the Obama's gave to a church and to charities. President Obama is big on giving taxpayer money away, but not out of his own pocket. President Obama's idea of "fairness" basically boils down to taxing rich Americans more. What a shallow concept of fairness. Is his massive deficit spending "fair" to our children and grandchildren, who will be stuck with these bills? Is it "fair" to expand government while diminishing private sector jobs? This President is a disaster, and he has to go.
Actually the highest gas prices occurred in the summer of 2008. Now, Who was the President Then?
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The spike was directly attributed to oil speculators. I don't think it had anything to do with Bush's policies.
In both 2010 and 2011, we saw our first increase in manufacturing jobs since 1997, after years of losing millions under bush/cheney.
The U.S. auto industry was on the brink in 2008 under bush, willard wanted to let it die, but President Obama made them restructure with major concessions by the unions, and now GM is back on top as the #1 auto company in the world.
-Andrew Carnegie
Where have we heard this before?
Sounds like?Bolshevik!
If you took the time to research the facts on your own, you would know that the rich not only pay a higher tax rate than you do, on average, but they also as a group, pay $4.40 in taxes for every $1 of taxes paid by you. Additionally, many so-called 1%'ers pay more taxes in a year than you will pay in a lifetime.
The real problem we face is people like yourself, who I am sure mean well, do not take the time to research facts on their own. Everything I've just told you is available for anyone to see at the IRS. Try not to get caught up in the false claims made by those who want to redistribute wealth - that's called Socialism and as an economic model, it doesn't work. You're better off with what you have now.
not everyone has had or ever will have the same opportunities that you or I have.
what compounds the problem is we have very specific laws now written that block one's ability to duplicate the success of others as these very same laws were written to do just that, block any and all competition.
Let's hope the folks in Washington just stop squabbling and pointing fingers at each other and listen to what he said.
We are all Americans. Let's get it done.