Free Markets, Free People

Obama’s “paid for” job’s plan — nothing but tax increases

I know, you’re wondering, how does Obama plan to pay for his $450 billion plus job plan, right.  Because in the speech he made the claim this was all going to be “paid for”, remember.

Well here’s the plan:

White House Office of Management and Budget Director Jack Lew outlined President Barack Obama’s plan to pay for his $447 billion jobs plan — mostly through tax increases.

Lew said itemized tax deductions and exemptions for those making more than $200,000, and families earning more than $250,000 would be cut — raising about $400 billion to pay for Obama’s jobs plan over 10 years.

A change to bring more hedge fund earnings under normal tax rules as opposed to carried interest rates would raise another $18 billion.

The new tax rules would not take effect until January 2013, Lew said. Obama is not offering any spending cuts to pay for the jobs plan.

The rest of the total would be raised by cutting subsidies for the oil and gas industries to bring in another $40 billion, and change the depreciation rules for corporate jets. All told, Obama would cut $467 billion to pay for his plan.

Lew added that the White House doesn’t anticipate that raising some taxes on high income earners would result in the loss of jobs.

Gotta love it.  No politics in this.  Nothing happens until January 2013 (how convenient).  And the changes will pay for his spending now in 10 years.   Wow, where have we heard that before?  More debt boosting smoke and mirrors.  More of the same old tired agenda.

And of course, we all know that no future Congress is obligated to any of this.  And you wonder why there are those of us out here shouting about paying for something now vs the future?

Also, it is a litany of those interests and demographics which reside on the Obama “enemies list”.  The rich and the fossil fuel industry.  It is the usual class warfare politics. To sell this Obama has to attempt to demonize the rich and the oil companies – even more than he’s done so already.  As everyone knows, I’m all for ending subsidies for everyone, but what Obama calls subsides in this case are tax breaks all businesses in all sectors take.  They’re not direct subsidies at all (regardless of what the press or the White House choose to call them).  This is selective taxation of the type that is meant to be punitive.

So here’s the money part of the great plan.  It is absolutely nothing the Republicans have supported before.  It should be Dead On Arrival.  Obviously, knowing the Republicans won’t support such a funding mechanism, President Obama is not at all interested in a compromise jobs bill.  Or bi-partisanship.  He’s put a completely unpalatable poison pill in the bill and will now try to paint the GOP as intransigent obstructionists.

And, given the fact that taking those tax breaks away from the oil and gas industry will cost them an extra $40 billion it’s hard not to believe it won’t cost jobs.  Note Lew didn’t address that point concerning the removal of the tax break.  He’s only claiming that in regards to the so-called “rich”.

Business as usual.  Tax and spend.  And as usual it is spend now an collect later.  Somehow we never get around to the spending cuts, do we?  $14 trillion dollars of debt say “no”.

~McQ

Twitter: @McQandO

16 Responses to Obama’s “paid for” job’s plan — nothing but tax increases

  • A timely post/link from Dailypundit.
     
    Scary
     
     
     

  • Next President Please

  • Mr. Obama says he (or somebody) will gladly pay in 15 months for 447 billion hamburgers today…

    • Well, you got that right, if this all goes the way it seems it is we will all be eating off the dollar value menu.

  • like Leno says, this is the season finale of President Obama.  In the end as confusing and bittersweet (for liberals anyway) as Lost

  • Charles Krauthammer said tonight on FoxNews that if the Republicans were truly cynical, they would pass the bill, and let Obama explain when it doesn’t work.  Given that we have now seen the payment plan, I would suggest that to really make this absolutely cynical, the Republicans should pass the bill but make the taxes effective Jan 1 2012.

  • The DNC used footage of President Obama speech to a joint session of Congress for what is obviously a political ad.
    House Rule 5, clause 2(c)(1) says that “Broadcast coverage and recordings of House floor proceedings may not be used for any political purpose…” Additionally, House Rule 11, clause 4(b) says that “radio and television tapes and film of any coverage of House committee proceedings may not be use, or made available for use, as partisan political campaign material to promote or oppose the candidacy of any person for public office.”
    Normally House ethics rules aren’t a problem for the DNC. But since April of this year, a member of Congress, Rep. Debbie Wasserman-Schultz of Florida, has chaired the national committee. Some say that the House ethics rule applies to the DNC ad for the simple reason that Wasserman-Schultz is chair.

  • What most people fail to understand, is that Obama is
    Chauncey Gardener.

  • I was frankly shocked when he actually submitted a bill: I didn’t think he had it in him.  Then I started to read the highlights.  This isn’t a “jobs” bill: it’s a TAX bill.  Man, he really hates jet owners and oil companies, doesn’t he?

    McQ[Bad Luck Barry] put a completely unpalatable poison pill in the bill and will now try to paint the GOP as intransigent obstructionists.


    Bingo.

    NeoCharles Krauthammer said tonight on FoxNews that if the Republicans were truly cynical, they would pass the bill, and let Obama explain when it doesn’t work. 

    Oh, that would be just too sweet.  O’ course, MiniTru will not hold him accountable for the failure of Porkulus v2.0 any more than they held him accountable for the failure of Porkulus v1.0.  He’ll get out and natter about “jobs saved or created” and the talking heads will nod and say, “Yes.”

  • All told, Obama would cut $467 billion to pay for his plan.

    Zeke Miller should be banned from any keyboard.  What an IDIOT statement, especially in a business publication.
    The boob just got through saying there were NO spending reductions…NO CUTS ANYWHERE to off-set this new boondoggle.
    The Cloward-Piven aspects of this are pretty inescapable…as is Bad Luck Barry’s plan to recycle new “stimulus” $$$ into his campaign.