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Thursday, January 28, 2010

Tax Portions of President Obama's State of the Union Speech

State of the Union Here are the tax portions of President Obama's State of the Union address last night:

As we stabilized the financial system, we also took steps to get our economy growing again, save as many jobs as possible, and help Americans who had become unemployed.

That's why we extended or increased unemployment benefits for more than 18 million Americans; made health insurance 65 percent cheaper for families who get their coverage through COBRA; and passed 25 different tax cuts.

Let me repeat: We cut taxes. We cut taxes for 95 percent of working families. We cut taxes for small businesses. We cut taxes for first-time homebuyers. We cut taxes for parents trying to care for their children. We cut taxes for 8 million Americans paying for college. ...

As a result, millions of Americans had more to spend on gas, and food, and other necessities, all of which helped businesses keep more workers. And we haven't raised income taxes by a single dime on a single person. Not a single dime. ...

So tonight, I'm proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat. I am also proposing a new small business tax credit -- one that will go to over one million small businesses who hire new workers or raise wages. While we're at it, let's also eliminate all capital gains taxes on small business investment; and provide a tax incentive for all businesses, large and small, to invest in new plants and equipment. ...

And to encourage these and other businesses to stay within our borders, it's time to finally slash the tax breaks for companies that ship our jobs overseas and give those tax breaks to companies that create jobs in the United States of America. ...

To make college more affordable, this bill will finally end the unwarranted taxpayer-subsidies that go to banks for student loans. Instead, let's take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants. ...

Now, the price of college tuition is just one of the burdens facing the middle-class. That's why last year I asked Vice President Biden to chair a task force on middle-class families. That's why we're nearly doubling the child care tax credit, and making it easier to save for retirement by giving every worker access to a retirement account and expanding the tax credit for those who start a nest egg.

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Comments

Henchman's piece on the Tax Policy Blog willfully misses the point about the glazier in Philadelphia or wherever. The Bastiat story involved replacing a broken window, not putting in new windows on new construction or home improvements. In the latter case, there is net positive activity, including specifically new jobs, generating more consumption.

Posted by: r. | Jan 28, 2010 1:33:59 PM

Through the Stimulus Act, they didn't replace crosswalks along our local state road. They put in new handicapped accessible ones! They are very fancy with the walk-don't-walk signs, special wheelchair ramps with those little nubs, etc. Just one problem...the cross walks are like the bridge to nowhere. They connect to nothing!

They are along a rural highway with no sidewalks, paths, or nearby developments. They begin and end either at guardrails or where the embankment rises up. At best, someone can walk or roll around the intersection, but that's as far as they're going. For all the good this has done, I'd just as soon the government break and replace windows.

Posted by: Woody | Jan 29, 2010 8:23:26 AM