Obama: “…more economic growth and build on the Fiscal Commission’s model of reducing tax expenditures so that there is enough savings to both lower rates and lower the deficit.”
So why did he include that line about lowering taxes after giving this huge speech on the need to raise taxes on the rich so that they can pay their fair share? Because that was the plan all along, to lower the top corporate and possibly the personal income tax.
The Fiscal Commission’s findings that have been published since said that they wanted to lower the top corporate and individual income rates after getting rid of deductions and loopholes. And now today, John Harwood reported for the New York Times that the Obama administration is preparing a plan to lower corporate tax rates.
The Fiscal Commission said that it will get rid of loopholes and that it has a revenue-neutral effect, etc.. Although they will get rid of the loopholes for now, however, at the first possible opportunity, the corporations will re-insert those loopholes but now at a lower rate. The rate could be lowered from 35% to 26%.
Whose brilliant idea was this? Of course, none other than Tim Geithner. There isn’t a corporate executive that this guy has not wanted to hug.
The policy is disastrous, but what’s worse is the politics. In the middle of a brewing middle-class rage about lack of jobs, high gas prices, where the rich are getting richer and paying less taxes, the President is going to propose lowering corporate taxes?! Is he crazy?
What’s his slogan for 2012? “I know you’re in a lot of trouble, but don’t worry, I just gave the corporations another break?”
Turn around, President Obama, you’re going the wrong way. Stop listening to Geithner, stop listening to the Washington media, the country’s in a rage over the economy. They don’t think this is the answer. Please turn around.