Reforming the Tax Code
The tax code has become increasingly complicated and unfair. Under today’s tax laws, those who can afford expert advice can avoid paying their fair share and interests with the most connected lobbyists can get exemptions and special treatment written into our tax code. While many of the tax incentives serve important purposes, taken together the tax expenditures in the law are inefficient, unfair, duplicative, or even unnecessary. In fact, because our corporate tax system is so riddled with special interest loopholes, our system has one of the highest statutory tax rates among developed countries to generate about the same amount of corporate tax revenue as our developed country partners as a share of our economy; this, in turn, hurts our competitiveness in the world economy.
That is why the President is calling on the Congress to enact comprehensive tax reform that meets the following five principles:
To begin the national conversation about tax reform, the President has offered a detailed set of tax loophole closers and measures to broaden the tax base that. These measures include: cutting tax preferences for high-income households; eliminating special tax breaks for oil and gas companies; closing the carried interest loophole for investment fund managers; and eliminating benefits for those who buy corporate jets.
Tax reform should draw on these items, together with the elimination of additional inefficient tax breaks, to finance the reduction of marginal rates and meet the President’s other tax principles, including the Buffett Rule. In the absence of fundamental tax reform, the President believes these measures should be enacted on a standalone basis, along with permanent extension of the middle class 2001 and 2003 tax cuts. This would be an important step toward a tax system that is consistent with the President’s principles.
1. Lower tax rates.Lower tax rates.
The tax system should be simplified and work for all Americans with lower individual and corporate tax rates and fewer brackets.
2. Cut the deficit by $1.5 trillion over the next decade through tax reform, including the expiration of tax cuts for single taxpayers making over $200,000 and married couples making over $250,000.
2. Increase job creation and growth in the United States.
4. Make America stronger at home and more competitive globally by increasing the incentive to work and invest in the United States.
5. Observe the Buffett Rule.
As multi-billionaire Warren Buffet has pointed out, his average tax rate is lower than his secretary’s. No household making over $1 million annually should pay a smaller share of their total income in taxes than middle-class families. This rule will be achieved as part of overall reform that increases the progressivity of the tax code.
Americans Back Obama Tax-Rate Boost Tied to Entitlements
Dec 12, 2012 5:00 PM PT By Julie Hirschfeld Davis – bloomberg
A majority of Americans say President Barack Obama is right to demand that tax-rate increases for the highest earners be a precondition for a budget deal that cuts U.S. entitlement programs, a Bloomberg National Poll shows.
Just over half say Obama and Democrats are more on their side in the debate over taxes and government spending than House Speaker John Boehner and Republicans, in a survey conducted Dec. 7-10 that suggests the president has broad public backing for his stance in the deficit-reduction talks.
While Americans are divided over solutions to avoid spending cuts and tax increases slated to take effect in January if no deal is reached, majorities want the wealthy to bear the burden of such a compromise. And while more than half say Republicans were right initially to sign a pledge never to raise taxes, that includes about one-third who say things have changed and lawmakers should back away from the promise.
The results indicate a sense of urgency among Americans for an accord between Obama and Congress to avert a fiscal crisis, and a willingness to make sacrifices to strike a deal.
J. Ann Selzer of Selzer & Co., the Des Moines, Iowa, firm that conducted the poll, says the findings encapsulate American views on the fiscal debate.
“Obama won the election promising to raise taxes on the wealthy,” Selzer says. “Republicans who refuse to budge from their pledge not to raise taxes are wrong-headed. Failure to strike a deal would put the national economy and the people who live in it at risk.”
US Fiscal Cliff Status
* President Obama arrives back early to the White House from his holiday recess for a special session on the fiscal cliff crisis
* US Senate lawmakers return to Capitol Hill from their holiday recess for a special session on the fiscal cliff crisis
Obama seeks deal as US ‘fiscal cliff’ looms
Published on Dec 27, 2012 Tom Ackerman – Al Jazeera
President Barack Obama has cut short his holiday and was returning to Washington as no deal appeared in sight to avoid the year-end “fiscal cliff” of higher taxes and deep spending cuts that could spin the still-fragile economy back into a recession.
The US treasury secretary warned on Thursday that the government would hit its borrowing limit on Monday, the final day of the year.
* US House of Representatives lawmakers return to Capitol Hill from their holiday recess for a special session on the fiscal cliff crisis
Democrat House of Representatives –
House Democratic Whip Steny H. Hoyer (MD) spoke on the House Floor today during Pro Forma session to urge House Republican leaders to call the House back into session.
Published on Dec 27, 2012
“We are in Pro Forma session. Pro Forma session is a session without substance or solutions.
GOP House of Representative members were told Thursday (12/27/12) to return to Washington Sunday night (12/30/12) –with only hours remaining to avoid the Dec. 31 (2012) fiscal cliff deadline.
Contact your Congress person to TELL THEM TO GET BACK & START WORKING WITH PRESIDENT OBAMA to HELP AMERICA’S RECOVERY!!
January 01, 2013
Statement from the President on the Senate Deal to Extend Middle Class Tax Cuts
Leaders from both parties in the Senate came together to reach an agreement that passed with overwhelming bipartisan support today that protects 98 percent of Americans and 97 percent of small business owners from a middle class tax hike. While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay.
This agreement will also grow the economy and shrink our deficits in a balanced way – by investing in our middle class, and by asking the wealthy to pay a little more.
What’s more, today’s agreement builds on previous efforts to reduce our deficits. Last year, I worked with Democrats and Republicans to cut spending by more than $1 trillion. Tonight’s agreement does even more by asking millionaires and billionaires to begin to pay their fair share for the first time in twenty years. As promised, that increase will be immediate, and it will be permanent.
There’s more work to do to reduce our deficits, and I’m willing to do it. But tonight’s agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans. And as we address our ongoing fiscal challenges, I will continue to fight every day on behalf of the middle class and all those fighting to get into the middle class to forge an economy that grows from the middle out, not from the top down.
President Obama on the “fiscal cliff” agreement
Published on Jan 2, 2013
President Obama on what’s in the “fiscal cliff” agreement and what it means for you. Watch it and share it with friends and family.