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Obama's State Of The Union: Millionaires Need To Pay Fair Share Of Taxes (And Bin Laden Is Dead)
By
Jen Chung
Published Jan 24, 2012
Modified Jan 25, 2012
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By
Jen Chung
Published Jan 24, 2012
Modified Jan 25, 2012
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President Obama's third State of the Union address focused on economic fairness for Americans. "We can either settle for a country where a shrinking number of people do really well, while a growing number of Americans barely get by," Obama said in his speech. "Or we can restore an economy where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same set of rules. What’s at stake are not Democratic values or Republican values, but American values. We have to reclaim them," and "It’s time to apply the same rules from top to bottom: No bailouts, no handouts, and no copouts. An America built to last insists on responsibility from everybody." And that includes fair tax reform and rewarding companies who are employing Americans.
The President specifically called out the richest Americans (like a certain potential opponent), saying, "Right now, we’re poised to spend nearly $1 trillion more on what was supposed to be a temporary tax break for the wealthiest 2 percent of Americans. Right now, because of loopholes and shelters in the tax code, a quarter of all millionaires pay lower tax rates than millions of middle-class households. Right now, Warren Buffett pays a lower tax rate than his secretary... Tax reform should follow the Buffett rule: If you make more than $1 million a year, you should not pay less than 30 percent in taxes. And my Republican friend Tom Coburn is right: Washington should stop subsidizing millionaires. In fact, if you’re earning a million dollars a year, you shouldn’t get special tax subsidies or deductions. On the other hand, if you make under $250,000 a year, like 98 percent of American families, your taxes shouldn’t go up. You’re the ones struggling with rising costs and stagnant wages. You’re the ones who need relief."
Companies with workforces outside of the United States and receiving incentives were criticized, with Obama declaring, "No American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. From now on, every multinational company should have to pay a basic minimum tax. And every penny should go towards lowering taxes for companies that choose to stay here and hire here." He wants bigger tax cuts for companies manufacturing in the U.S. and to double the deduction for high-tech companies with factories here (he'd know): "It’s time to stop rewarding businesses that ship jobs overseas, and start rewarding companies that create jobs right here in America. Send me these tax reforms, and I’ll sign them right away. "
He also bookended his speech with mentions of Osama bin Laden, saying at the start, "For the first time in two decades, Osama bin Laden is not a threat to this country," and at the end, to emphasize the idea of bipartisanship, "One of my proudest possessions is the flag that the SEAL Team took with them on the mission to get bin Laden. On it are each of their names. Some may be Democrats. Some may be Republicans. But that doesn’t matter. Just like it didn’t matter that day in the Situation Room, when I sat next to Bob Gates - a man who was George Bush’s defense secretary; and Hillary Clinton, a woman who ran against me for president."
Overall, it was an optimistic, election-year view of a country that can do more. Other highlights include creating a "Trade Enforcement Unit" which will investigate "unfair trade practices in countries like China" and a new mortgage crisis unit—led by NY Attorney General Eric Schneiderman—to investigate mortgage misconduct, encouraging innovation, and immigration reform. Read the transcript here.
Tagged
buffett rule
election 2012
innovation
president obama
tax reform
Jen Chung
Jen Chung is a former WNYC and Gothamist editor.
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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