Get excited: Obama to propose a “grand bargain” on corporate tax rates and infrastructure

posted at 9:31 am on July 30, 2013 by Erika Johnsen

I suppose it really is a step up from the lengthy, meandering lecture of the latest “economic pivot” for which the president stumped last week, wherein the he took almost seventy minutes to basically complain that “I’m just a bystander in this economy, rabble rabble rabble” and talk up the misguided merits of the many “investments” he wishes he could make if it weren’t for those obtuse Republicans. …But only a small step. CNN reports:

Speaking at an Amazon.com distribution plant in Tennessee Tuesday, President Barack Obama will propose a “grand bargain” with lawmakers on spurring job growth, according to one of his top advisers.

“As part of his efforts to focus Washington on the middle class, today in Tennessee the President will call on Washington to work on a grand bargain focused on middle class jobs by pairing reform of the business tax code with a significant investment in middle class jobs,” said Dan Pfeiffer, a senior adviser to the president.

Obama will suggest Congress cut corporate tax rates – long a goal of Republicans – while simultaneously making jobs investments, which Democrats and the president have been championing.

The White House would not say Tuesday how much each part of the bargain – the tax changes and the investment – would amount to.

Hmm. We’re still waiting on specifics, but I suppose the big attempt at ‘compromise’ here is that he’s for the moment shelving raising taxes and instead offering to allow for some easing up on businesses — but in exchange, of course, we have to make some of those precious Keynesian “investments” in “infrastructure” that he supposes will “create” jobs and help jump-start the economy. If Republicans do refuse to let the government deficit-spend still money on such assuredly fruitless endeavors, of course, the president can then at least say that they just don’t want to do it because he’s the one who proposed it, and my, aren’t they just such spiteful obstructionists?

And I might venture that the decision to propose the whole idea in front of an Amazon plant probably has something to do with the fact that Amazon is going on a hiring spree — as if it’s somehow due to President Obama’s oversight of the economy, and not in spite of it.

Update: Some specifics and immediate reaction, via the Washington Examiner:

Obama wants to cut the corporate tax rate of 35 percent to 28 percent and give manufacturers an even lower rate of 25 percent — a proposal the president floated last year. Rather than link the corporate tax cuts with an overhaul of the individual rate, as he did previously, Obama will instead press for more federal spending on his jobs blueprint. The president will also call for a minimum tax on foreign earnings. …

“The president has always supported corporate tax reform,” said Michael Steel, a spokesman for House Speaker John Boehner.  “Republicans want to help families and small businesses, too. This proposal allows President Obama to support President Obama’s position on taxes and President Obama’s position on spending, while leaving small businesses and American families behind.”


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I’m beside myself.

The Rogue Tomato on July 30, 2013 at 9:41 AM

Obama will suggest Congress cut corporate tax rates

But, but…. he’s selling out to the evil corporations? And capitalism?

faraway on July 30, 2013 at 9:43 AM

Put poison pill in it to negate any union advantage in contracting.

Theworldisnotenough on July 30, 2013 at 9:45 AM

Does anybody really give a damn what Obama says anymore?

Just stop him from doing anything other than golfing and going on vacation, and we may well survive this.

coldwarrior on July 30, 2013 at 9:46 AM

Does this dolt have any idea in the world what he is doing from second-to-second?

rplat on July 30, 2013 at 9:46 AM

I would imagine the cut in the corporate tax rate will somewhere along the lines of 1%. Lefties love that number and anything more just wouldn’t be “fair”.

Bitter Clinger on July 30, 2013 at 9:46 AM

And by “cut” corporate tax rates, he means “jack them up.”

SagebrushPuppet on July 30, 2013 at 9:47 AM

It’s a start.

gerrym51 on July 30, 2013 at 9:47 AM

Don’t worry. I’m sure Boehner and Cantor have some brilliant, creative conservative economic plan ready to go to counter Obama’s nonsense.

Mark1971 on July 30, 2013 at 9:47 AM

I’ll give you these tax cuts later but you have to give me more spending power now…I’m still campaigning, you know.

Mimzey on July 30, 2013 at 9:47 AM

It being any bill that spends on infrastructure.

Theworldisnotenough on July 30, 2013 at 9:48 AM

by pairing reform of the business tax code with a significant investment in middle class jobs,

What, exactly is an ‘investment’ in jobs?

Handouts? Immigration? Union payoffs? ObamaCare?

faraway on July 30, 2013 at 9:48 AM

After the tax increase on individuals at the beginning of the year, a corporate tax cut will mean many small business owners will be paying a higher rate than a corporation. This is why you can’t separate corporate and individual tax reform.

Mark1971 on July 30, 2013 at 9:49 AM

>emme see. Jugears says he’ll cut the corp rate IF he can borrow money to reward his friends issue grants.

Can somebody explain how this fits in with the upcoming CR /debt ceiling fight?

platypus on July 30, 2013 at 9:49 AM

I’m sure his reduction of the corporate tax rate won’t affect 90% of small business, which gets taxed at the individual rate because they are structured as S Corp’s or LLC’s.

phillypolitics on July 30, 2013 at 9:51 AM

“As part of his efforts to focus Washington on the middle class, today in Tennessee the President will call on Washington to work on a grand bargain focused on middle class jobs by pairing reform of the business tax code with a significant investment in middle class jobs,” said Dan Pfeiffer, a senior adviser to the president.

As if he’s not part of Washington?

The Limbaugh Theorem at work.

Why does he need them? We were told a President controls the economy during the 8 years of the last administration.

Wagthatdog on July 30, 2013 at 9:51 AM

Here’s how you “grand bargain”, Mister President.

Reduce the rates.
Eliminate loopholes.

Deficit-neutral at worst, significant increase in revenue at best.

And the only “loss” in this equation is that you’ll be implementing something proposed by Congressman Ryan that you criticized and demonized.

… never mind, I see now why he can’t propose this.

The Schaef on July 30, 2013 at 9:52 AM

What a great deal, advanced technology companies will get some pathetic tax breaks if they are willing to create jobs for buggy-whip craftsman.

This moron, jeebus, the end result of being incubated in an environment controlled by pampered leftist fascist “elite” who couldn’t survive a 3 days without electricity or their house staff.

Bishop on July 30, 2013 at 9:52 AM

Yes, we really need more stimulus spending, because the last one worked so well, and so did 0bama’s other “investments” (GM, Chrysler, Solyndra, etc etc etc).

UltimateBob on July 30, 2013 at 9:52 AM

A liberal’s idea of ‘cutting taxes’ usually means rates won’t be raised for a little while, much the same as a ‘spending cut’ being an increase of three percent when Democrats wanted six percent but ‘compromised’ on three.

Besides, does anyone think Reid won’t be the monkey wrench in the works like he usually is?

Liam on July 30, 2013 at 9:53 AM

Compromise????? Yeah, we all know how well that works. That’s why we are in the mess we are today. There is no way to save ourselves with him and Dems in power. However, if it will stall things until the cavalry arrives….. But it will be for naught because the Republicans will cave.

BetseyRoss on July 30, 2013 at 9:54 AM

He’s shovel ready. Ready to shovel his BS some more.

Flange on July 30, 2013 at 9:55 AM

Ahhh, the good ol’ days of Jimmah Carter…

OmahaConservative on July 30, 2013 at 9:55 AM

Maybe he will propose some bridge building (for unions) in exchange for their ObamaCare approval.

faraway on July 30, 2013 at 9:55 AM

As Peggy Noonan pointed out yesterday, most people have stopped listening to this teleprompter.

hillsoftx on July 30, 2013 at 9:56 AM

How about the GOP promises to invest in infrastructure later, in exchange for a corporate tax cut now?

Mohonri on July 30, 2013 at 9:57 AM

How about the GOP promises to not indict Obama invest in infrastructure later, in exchange for a Obama resigning corporate tax cut now?

Mohonri on July 30, 2013 at 9:57 AM

coldwarrior on July 30, 2013 at 10:00 AM

Obama has submitted more proposals than the local high school loser trying to get the hottest girl in school to go with him to the prom.

Kingfisher on July 30, 2013 at 10:01 AM

“Here’s your aggregate $100,000 tax break but you have to hire three people now.”

-It will cost me $200,000 to actually hire those three extra people.

“It’s all part of my grand bargain. Cool, huh?”

Bishop on July 30, 2013 at 10:02 AM

Obama has submitted more proposals than the local high school loser trying to get the hottest girl in school to go with him to the prom.

Kingfisher on July 30, 2013 at 10:01 AM

The difference – the high school loser changes his proposals up somewhat.

Steve Eggleston on July 30, 2013 at 10:03 AM

He wants the SPENDING, and he knows he can’t get it unless he finds some way to entice or even trap Republicans. I guarantee he and his cronies will be the eventual beneficiary.

Murf76 on July 30, 2013 at 10:04 AM

Temporarily the rise of the debt is slowing down, so let’s propose a stimulus to get back to adding 1.5 trillion to the debt every year. The 51% who voted for this malicious incompetent have the president they deserve.

mwbri on July 30, 2013 at 10:08 AM

How about just cutting the corporate tax rate? Enough with the grand bargain nonsense. That’s just a way of allowing the Dems and RINOs to load up bills with pork and kickbacks that have nothing to do with the intended purpose of the legislation.

Doughboy on July 30, 2013 at 10:10 AM

The welfare queens agitator is proving without any doubt and day after day that he is the most incompetent President ever. Many on our side overrate this fool and think that he is planning all this crap but in reality the fool does not know anything and hence he moves from dumb idea to a dumber idea by the hour…

mnjg on July 30, 2013 at 10:11 AM

The 51% who voted for this malicious incompetent have the president they deserve.

mwbri on July 30, 2013 at 10:08 AM

Sadly, the rest of us are stuck with him, too.

Liam on July 30, 2013 at 10:11 AM

The president will also call for a minimum tax on foreign earnings. …

Did he consult his Limousine Liberal friends in Apple, Microsoft, and many others companies about this?… I am sure they will not be happy to hear that…

mnjg on July 30, 2013 at 10:16 AM

An Amazon plant? I’m sure you meant distribution center.

Obama’s corporate tax cut proposal will include so many conditions that few manufacturers are likely to actually qualify.

As far as infrastructure spending, what about the now annualized $800 Billion stimulus tat was supposed to be for infrastructure. People forget that the stimulus was supposed to be for infrastructure but is now part of spending every year. Where the Heck is all that money being spent if not on infrastructure? Will anyone ask this of Obama?

Charlemagne on July 30, 2013 at 10:16 AM

In an economically literate world the corporate income tax would be completely eliminated because it is simply passed along to consumers in the price of the product like any other expense.

Charlemagne on July 30, 2013 at 10:18 AM

This proposal allows President Obama to support President Obama’s position on taxes and President Obama’s position on spending, while leaving small businesses and American families behind.”

Boehner has it right. I guess calling anything a grand bargain is a dog whistle that this is all about the filthy rat-eared coward. But I wish the statement had been more to the point…..

Come back when you really want to talk about jobs you worthless commie.

Happy Nomad on July 30, 2013 at 10:22 AM

This is all BS
There is a DEVIL in these details and his name is Obama!
Obama will not cut any tax rates without insisting companies spend millions or billions on wasteful green energy crap or some other pet projects of this yahoo president.
Maybe the other side of the coin will be having to hire Union workers?
There is something coming because the one thing we all know is that Obama is not what he appears to be

Delsa on July 30, 2013 at 10:24 AM

I guarantee he and his cronies will be the eventual beneficiary.

Murf76 on July 30, 2013 at 10:04 AM

Yeah the filthy liar is like a crack addict looking for a fix. He needs more “investment money” to provide billions for more fake battery and solar panel plants.

No sale. The GOP response should start with the XL pipeline. That provides plenty of jobs. Demand the bastard signs off on that before any other discussion of “grand bargains.”

Happy Nomad on July 30, 2013 at 10:27 AM

great. More shovel ready jobs.

AM

z73421 on July 30, 2013 at 10:32 AM

Seriously, Boehner should challenge Obama to sit down in a room without assistance and do his own federal income tax return. Obama’s effort should be televised.

Maybe after two hours of a failed effort, many tears, and finally a call from Valerie Jarrett to stop the show we might get tax reform.

What in heaven’s name does Obama know about anything having to do with the economy, finance, markets, and taxation? He really is a moron.

BuckeyeSam on July 30, 2013 at 10:33 AM

Here’s the uber-Prog, Obama fanboy, Ezra Klein of the Washington Post, back in May:

Let’s get rid of corporate taxes altogether

Klein finally stumbled upon the obvious: Corporations do not pay taxes. People do.

People pay them in the form of personal taxes on dividends and capital gains or paying higher prices or by receiving lower pay and benefits.

Obama knows this and, as indicated, he has proposed cutting the corporate tax rate, but would rather let his stupid, redistributionist base think that he HAD to give a cut in corporate tax rates to the GOP in order to get more ‘investment’ spending. ‘I’m still on your side against the Wall Street GOP!!!’

Oh, and here’s Kevin Drum from Mother Jones last November – AFTER the election, of course:

Today’s Crazy Idea: Let’s Get Rid of Tax Brackets for the Rich!

If they are still up, read the hysterical comments made by ‘Progressives’ in both columns.

Who remembers this?

‘While we’re at it, let’s also eliminate all capital gains taxes.’

- Barack Obama, first State of the Union speech, 27 January 2010

Resist We Much on July 30, 2013 at 10:33 AM

What, exactly is an ‘investment’ in jobs?

Handouts? Immigration? Union payoffs? ObamaCare?

faraway on July 30, 2013 at 9:48 AM

This.

CaptFlood on July 30, 2013 at 10:34 AM

And even though a cut to 28% would be great, why does he continue to pick winners and losers by only giving “manufacturing” 25%? What’s wrong with service provider industries or anything else for that matter?

kirkill on July 30, 2013 at 10:35 AM

Another PHONY Grand Bargain.

kirkill on July 30, 2013 at 10:37 AM

And I might venture that the decision to propose the whole idea in front of an Amazon plant probably has something to do with the fact that Amazon is going on a hiring spree — as if it’s somehow due to President Obama’s oversight of the economy, and not in spite of it.

I’m glad that you pointed this out. It’s all about optics and “perception” with the Obysmal Clown. He runs around pontificating at places that are succeeding in spite of his policies.

onlineanalyst on July 30, 2013 at 10:42 AM

And even though a cut to 28% would be great, why does he continue to pick winners and losers by only giving “manufacturing” 25%? What’s wrong with service provider industries or anything else for that matter?

kirkill on July 30, 2013 at 10:35 AM

In my opinion the corporate tax rate for manufacturing inside the US should be 0% for the next 20 years…

mnjg on July 30, 2013 at 10:42 AM

Stupidity has NO limits any more.

Schadenfreude on July 30, 2013 at 10:57 AM

WOW! What a fascinating NEW concept from a democrat!

Lets have MORE TAXES and MORE SPENDING!

How is this ANY sort of an economic plan? Oh wait, just in from Van Hollen: The democrats want to ‘target the sequester spending’. Van says the democrats want to cut tax avoidance incentives and use that to eliminate the rest of the sequester.

Oh wait, this is another WOW! Another TAX and SPEND plan from a democrat!

What will these democrats think up next?

Freddy on July 30, 2013 at 11:06 AM

Is this the “grand bargain” he ought to have proposed six years ago?

If so, way too late. If not, more idiot politics….

unclesmrgol on July 30, 2013 at 11:08 AM

As long as the infrastructure spending is solely on the Keystone

mredly on July 30, 2013 at 11:09 AM

The REB will ignore parts that he doesn’t like in whatever bill comes out of Congress, and he has shown that he can get away with it. He is not someone that we can bargain with.

The only path forward for Republicans in the House is to block any and everything the REB does. Until we get a president that obeys the law, Republican or democratic, it is their duty to shut down an illegal administration.

slickwillie2001 on July 30, 2013 at 11:10 AM

Holy Shite! I may need to begin subscribing to the Chattanooga Times Free Press…from Ohio:

http://www.nationalreview.com/corner/354741/chattanooga-paper-tells-obama-take-your-jobs-plan-and-shove-it-speech-andrew-johnson

BuckeyeSam on July 30, 2013 at 11:26 AM

IIRC, all of his big corporations don’t pay taxes anymore, like GE and facebook. Also those companies send entire divisions to china at the same time.

My best guess is a lot more spendi….graft to his cronies and bundlers for a possible tax cut later that he will refuse to enforce.

Republicans 0bama is a scorpion. DO NOT expect him to be anything other than a scorpion. He will tell you pretty lies and then sting you with no remorse.

jukin3 on July 30, 2013 at 11:29 AM

How about reducing the deficit and overall debt? What this does is allow the government new money for new spending. I don’t recall seeing a drop in spending after the stimulus program ended. If we spent $1T over three years on the stimulus, you would think once the spending stop, you would see at least a $300B spending cut.

djaymick on July 30, 2013 at 11:39 AM

Obama wants to cut the corporate tax rate of 35 percent to 28 percent and give manufacturers an even lower rate of 25 percent — a proposal the president floated last year. Rather than link the corporate tax cuts with an overhaul of the individual rate, as he did previously, Obama will instead press for more federal spending on his jobs blueprint.

And just what qualifies as “manufacturing”? Since Obama is giving his speech at an Amazon “distribution” plant, would Amazon qualify as a “manufacturing” business, when Amazon doesn’t “manufacture” anything, but only transports widgets other companies manufacture to customers who order them online?

While we’re on this subject, do refineries “manufacture” gasoline and diesel fuel? I contend that they do, because you can’t burn crude oil in a car or truck, so they “manufacture” fuel from a raw material. Would Mr. Green Clean Obama give a 3% tax break to those horrible greedy BushHitlerHalliburton oil companies who melt the Greenland ice caps and flood Florida? /Gore off

Boehner and the Republicans have a point here–many small businesses (such as car repair shops, plumbing or electrical contractors, or retail stores) don’t “manufacture” anything, but they employ lots of people and perform needed services. Don’t they deserve a tax break, so they can hire more people or give their existing employees a raise, who will then spend their extra money in the general economy?

Let’s lower the corporate tax rate to some fixed level (28% or, even better, 25%) for ALL corporations, including sole proprietors and mom-and-pop shops. This would entice more people to start businesses, and we won’t need government “investments” in job programs–all those new businesses will train the new employees they will need.

Steve Z on July 30, 2013 at 11:50 AM

Obama wants to cut the corporate tax rate of 35 percent to 28 percent

Still 28 percent too high.

There’s no good excuse for any corporate tax. All it does is make lobbyists rich.

Chris of Rights on July 30, 2013 at 11:53 AM

If the Infrastructure project is KeystoneXL, I’m ALL IN!

Sinner on July 30, 2013 at 12:40 PM

I can’t believe anyone’s falling for this.

This is the same guy who held the country hostage at the turning of this past year so he could jack tax rates up on the top 2% of earners. I give no excuses to the republicans that went along with it, but obama was insistent and refused to back down.

And now we’re to believe he wants to bring tax rates for those very same 2 percenters right back down to where they started?

Keep in mind that the ink wasn’t even dry on the deal to hike taxes on the top earners when the very same obama claimed the very same earners STILL weren’t paying enough in taxes.

And yet, half the country buys everything this clown says. So who’s the clown? We are.

runawayyyy on July 30, 2013 at 3:13 PM

…what a p o s !

KOOLAID2 on July 30, 2013 at 11:04 PM

OK, let’s offer a sop to the jerks. Let’s tax corporations 55%. Then let’s use that money as a subsidy for corporations by giving back a subsidy exactly equal to the taxes paid. This subsidizes success rather than failure as Obama arranges things. It also recognizes the fact that corporations never pay tax. Only individuals pay tax. Others simply pass the tax along to their customers in higher prices.

So we wrap up the tax increase and the government subsidies into one neat package.

Somehow I don’t think Obama would fall for it. But I’d die happy if somebody would at least try.

{^_^}

herself on July 31, 2013 at 5:33 AM