Tag Archives: Obama’s new tax plan

Big surprise – more tax issues.

Obama will head out on the road this week to begin the effort to get support for the debt reduction plan he outlined last week. He’s not doing so on the greatest footing. Last year, before elections created a Republican controlled House, a new tax plan would have had some chance to reach his desk. Not so much now. House Speaker John Boehner, even before Obama made his speech last week, spoke in opposition to any plan that would raise taxes – calling it “unacceptable” and a “non-starter”. But there are signs that Obama may get the support he needs if he focuses solely on corporations and the wealthy.

The touchiest part of Obama’s plan is his pledge to not extend the Bush era tax cuts for the wealthiest Americans, those making $250,000 or above. (Oh, déjà-vu! We’ve heard that before.) The GOP has always had the image of protecting the wealthy, the fat-cats, while the Democrats are often accused of an endless “tax and spend” cycle. Now, almost everyone thinks that the Republicans have pretty much cheated middle-class America while pandering to the wealthy. The wealthy aren’t paying their fair share in taxes and the middle-class is drowning in the kickback.

Nearly six in ten Americans have the belief that the wealthy aren’t paying their share of taxes and nearly seven in ten think the same about corporations. Two-thirds of those making under $100,000 a year believe that those in the upper-incomes are not paying enough in taxes. This public opinion might give Obama the backing he needs in order to get a new tax plan going. Plus, the middle-class is a huge target in any election but particularly one where the economy will be a central issue. If Obama can use quashing tax cuts for the wealthy to appeal to those middle-class voters it could be a huge advantage in upcoming elections.

That is if people can get past the knee-jerk reaction that increasing taxes hurts economic growth. Lesser known facts, like the U.S. corporate tax being the highest in the world and that ending the Bush tax cuts could impact 894,000 small businesses, could allow the Republicans to ultimately win the tax debate. But turning public opinion makes tax issues less of a sure thing for the GOP.

Obama’s winning message on taxes? – The Washington Post


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