After disclosing his latest plan to help stimulate job growth in a struggling economy, Obama spoke again today revealing his plan for paying for the $447 billion plan is entirely through tax hikes on the wealthy and corporations.
The President proposes a cap in itemized tax deductions for individuals making $200,000 a year and families making $250,000 a year. The president also seeks to end some subsidies and tax loopholes for oil companies and tax breaks hedge fund managers.
Progressives will cheer this plan as Obama finally seeking to appease the liberal base that got him elected by putting the burden of economic recovery on those who can afford it rather than on those who cannot. While the plan itself isn’t solid, these are tax increases that have been needed for a long time to show that the Obama Administration is not content to allow Republicans to place programs important to working class Americans on the chopping block to fund everything that the government needs to do in order to get the economy running again. It’s a great stand against the corporations that have tried to skirt paying their fair share in taxes and against those who seek to make money off of America’s economic failures and not add anything to American society.
As expected, after largely remaining silent and not scrutinizing the plan itself very much, as soon as the President announced his plan for funding the American Jobs Act, Republicans in Congress have immediately dismissed the plan solely because of the funding measures that will target the interests they have steadfastly shielded from any harm from the economic and fiscal crises that have plagued the country.
It is unlikely that this plan can get through the House of Representatives without some adjustments to the funding, which will probably include calls from Republicans to slash more programs that working Americans need rather than having their base pay the bill. When push comes to shove, we have to hope that Republicans will see that not getting behind this jobs bill is a bad move politically, and will be more willing to negotiate.