Obama to propose $1.5 trillion in new tax revenue

Obama to propose $1.5 trillion in new tax revenue

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WASHINGTON (AP) -- President Barack Obama will propose $1.5 trillion in new taxes as part of a plan to identify more than $3 trillion in long-term deficit reduction and slow the nation's escalating national debt.

Obama's tax plan is aimed predominantly at the wealthy and draws sharp contrasts with congressional Republicans.

counts savings of $1 trillion over 10 years from the withdrawal of troops from Iraq and Afghanistan.

(visit the link for the full news article)

If there was any mystery about what Obama's motivations were regarding his jobs bill that must be passed now, here it is. It is nothing but campaign trash meant to incite class warefare. It is not a serious plan.

Raising taxes on the productive will not solve the budget problems, only spending reductions can do that and there is not a credible economist who will say otherwise. You may find economists that suggest that now we need to spend more, but that is a temorary view (discounted by the majority of economists). Obama's plan is a 10 year plan, obviously suggesting that this is more than crisis spending.

Also counting the savings from winding down of Iraq and Afganistan is more smoke and mirrors. It assumes that the military efforts will continue to wind down as planned as well as that any reduction in costs there will not be replaced by a conflict in some other part of the world, something highly likely within a 10 year period.

In any event, the "pass this jobs bill now" jobs bill that was so urgent will not even be in a condition to be discussed in the Senate for amonth or so.

All this President has left is deflecting his own failures and pandering to his base. He's out of ideas, not interested in cooperating and simply just playing games

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(visit the link for the full news article)

They will save around £250 million when he is kicked out of office on reduction on travelling costs alone. He is the do nothing, loves a holiday president. The man is a joke and this is his death throw last gasp attempt to get a second term, which is a likely of Turkey sending 1 billion pounds of aid to Israel

reply to post by dolphinfan

Cuts in Medicare, cuts in defense, cuts in veterans retirement pay, raising taxes.

No cuts to government programs. No cuts to redundant government programs. (did I need to say that?)

Yup, class warfare, blame game, look at how it's all the GOP's fault. blahblahblah.



This POTUS needs to go back on vacation.

S&F

Market rally in t-10 minutes. This is becoming pathetic to be able to see the manipulation the average joe can't. On a good note the next day or two will probably be a good buying opportunity for more gold.

Yeah, the final bill came out after been all night working on it, the "eyes on Medicare and SS age increase" was off the table by the Democrats and only will allow cuts if Republicans goes along with taxing the rich

I think Obama wants the 1.5 trillion to pay for his Obamacare.

Sadly this money will got to pay for those that can not be "mandated" and the illegals in the nation.

No job growth and nothing to give to the working class.

Then we got the Republicans, they are such whores when it comes to the wealthiest in the nation, they don't give a darn about nothing else.

Democrats have agendas behind this and Republicans rather crap on the tax payers than give in.

If Americans weren't angry enough over Fast & Furious (2,000 guns sold illegally to the cartels=200 deaths so far), LightSquared (crony capitalism at it's best), or Solyndra (half a billion dollars to another green jobs scam), raising their taxes ought to finally be the deathnell to his progressive agenda.

reply to post by ludshed


Would not appear that the markets like his plan. Europe got hammered, despite the comments that the Fed will print more money, putting the US economy on the hook for bailing out the European debt mess. US futures are getting hit hard as well.

The markets are barely reacting to anything he says any longer. None of it is serious. They react on economic data such as housing starts, consumer confidence and the like, but only negatively on his speaches. It would be interesting what the analysis would show if someone shorted the market everyday Obama made a speach, because each time it seems to tank while he is actually speaking. Of course you would have to only do that on major speaches as he has been giving a self serving campaign speech for the past 2.5 years.

The man has become irrelevant to reasonable discussions on the economy. We've been in a "lets just wait until the new guy is in there" mode for months and this empty, no hope bill does nothing but underscore that he is not seriously interested in doing anything to pragmatically solve the jobs problem.

Ask an honest question - if Obama knew that with 100% certainty cutting taxes on the wealthy and nothing else would lower unemployment by 5 points would he cut their taxes? The answer is without question no.

reply to post by dolphinfan

By adding about $1 trillion in spending cuts already enacted by Congress and counting about $1 trillion in savings from the drawdown of military forces from Iraq and Afghanistan, the combined deficit reduction would total more than $4 trillion over 10 years, senior administration officials said.

I wonder how many more trillions we will add to our deficit in that decade. It wouldn't shock me to see that this would really only slow down the increase in debt rather than actually chipping away at it and getting us back in the right direction.

Also I just love how it's "class warfare" whenever the rich get taxed, but then its flipped around and poor people called "moochers" or the lazy Americans who want "handouts". Jon Stewart did a great story on the claims of "class-warfare" a few weeks ago.

This is sort of a waste of time. This will never pass the house. And everyone knows he is simply doing this to appeal to his base of democrats right before election time.

reply to post by dolphinfan


Nothing can save anymore the mess that US created in the EU when the housing market went down thanks to capitalistic corruption.

US Fed pumped tax payer money to the EU after 2008 that made a sence of stabilization, but the smaller economies could not bounce back like the bigger economies did, that brought down the EU again.

While the US looked like it was doing the best (only in the markets) no economically at citizen level.

Now the domino effect that started in the US in 2008 went around now is coming home to hit us in the arse.

No printing money is going to save the EUzone actually we are accelerating the end of the American era.

problem is, whenever they say cut military spending, they end up cutting how much they pay the enlisted guys and gals, and use the money they saved to spend more on weapons and so on. it was so bad, that by the time george bush finally got into office, the average 4 year enlisted troop qualified for food stamps and welfare, and many 6 - 8 year troops as well. so whenever i hear them talk about cutting military spending, i wonder if 5 years from now, we'll see military families living in the gutter but still going to war and being inoculated with stuff you wouldn't wish on your worst enemy

reply to post by marg6043


Its a bit more complicated than that. The disaster in the US housing market began in the 1970s when the government began a trend where they forced banks to lend money to people who were poor credit risks under the false notion of home ownership and social engineering.

The European mess was started when the EU, looking to expand allowed Greece, Italy, Spain and Portugal to play accounting tricks as well as never hit their debt to GDP ratio requirements and allowed them to enter the EU, despite the original fiscal design of the union. The Germans and French wanted to hold sway over these countries as well as create a super-state that they would be able to rule, hence they let these countries in, knowing that they would not meet the legitimate requirements - not ever. The Greeks were never going to manage their economy with the EU debt to GDP ratios and everyone knew it (and knows it) particularily the Greeks..

These same banks, holding debt that any reasonable person would have projected would be trash down the road are now looking for handouts. They already got one handout via TARP and now it looks like they'll get another.

reply to post by undo


Most of the military spending goes to private contractors just a small part of the budget actually goes to the military, the only thing that is keeping the military up is the incentives and bonuses now been given to attract more into it.

Still as a former military wife I remember when the military was worth it, we got the best housing and best care.

Now is nothing but a joke, while the private contractors take away most of the budget.

I know my husband now retire marine benefits from working for one of the biggest defense contractors in the nation, but even I have to say that the military can not afford to cut its military operations while keeping the contractors part of it untouched.

let thank Rumfeld for the privatization of the military, even my husband thinks that is no way in hell the military forces can be brought home in big numbers as is no jobs for them in the bases because most workers in the bases are private citizens.

Is a mess, I know is the biggest mess ever.

Panetta already warned the Obama administration that is not way he can cut the military without big consequences, my husband was military active duty when Clinton started to give away "early" retirements for enlisted to get off the service, that was the biggest mistake many did when they went for it, money didn't last long and then the ones that took the pay off found themselves jobless and penniless.

Sad what is going on with the military this days.

reply to post by dolphinfan


I know my friend I know, is just that is so much information to give and talk about that I just keep what people remember most first, (you know people tend to have short time memories)

Thanks for bringing that out is good to have a walk on history and the memory line.

reply to post by On the level


do nothing?

have you seen what he's done to libya?

Maybe if all the politicians in Washington from both parties stop being so self-centered, and actually admit a need for cutbacks, excessive spending, and unwarranted pay raises/pensions we would not need to raise any taxes.

reply to post by marg6043


bush jr, gave the troops the first serious cost of living raise in decades, i think. and it was a big raise, that's how far behind they were. trying to send these guys to war zones, leaving families behind living on food stamps, barely scraping by, while their spouses were being shot up with some nasty inoculations, and shot at in foreign countries by people they had no argument with in the first place (they all thought osama was the target not saddam)...not a good scenario. he must've realized that in order to keep the whole thing from imploding 1 month later, when all their enlisted spouses started calling in a panic due to no money (new costs accrued, such as babysitter when one wasn't needed before, car repairs spouse normally did, now having to pay a mechanic to do it instead, etc. when you're that poor, even a flat tire can mean not eating well or at all, for a few days). that he'd better give them enough money to stay afloat and stem the tide of emergency calls. would've never worked otherwise.

So, let me get this straight, the stimulus and spending didn't work, so now they want to raise taxes? Yeah great plan! If they want to create jobs and help out the US economy, raising taxes to feed the governments out of control spending habits is not the way to do it.

reply to post by dolphinfan


The EU has gotten more than just help, from the Fed they can make loans to the EU without government or congress approval and with US tax payer to back it up.

While the government call TARP to bailout the US too big to help the Fed have another name for it.

Unelected, Unaccountable, Unrepentant: The Federal Reserve Is Using Your Money To Bail Out European Commercial Banks Once Again

Remember last week the German chancellor asking the Fed to bailout the EU at the sum of one 1 trillion dollars? many thought it was a joke, guess what is happen before.

For a moment, imagine that there is a privately-owned organization in the United States that can create U.S. dollars out of thin air whenever it wants and can loan that money to whoever it wants to. Imagine that this organization is able to act with the full power of the U.S. government behind it, but that nobody in the organization is ever elected by the American people, and that for all practical purposes the organization is not accountable to the president or to Congress.

Yes and right now against the US economy they are going once again to do it.

Imagine that the organization is able to make trillions of dollars of secret loans to banks, to foreign governments and even to their close friends without ever having to face a comprehensive audit. Does that sound preposterous? Well, such an organization actually exists. It is called the Federal Reserve, and today we found out that once again the Fed is going to be taking huge piles of your money and loaning it to commercial banks in Europe.

theeconomiccollapseblog.com... l-banks-once-again

While we go jobless and our economy tank we are giving away money.