Circumnetting the Taxes, the Economy and Politics

By September 11, 2010Economy, General, Taxation

Wall Street Journal, Stephen Moore, “Big Business to Obama: Thanks, But No Thanks“: “Business groups are nervous about likely tax increases to ‘pay for the proposed cuts, including tax hikes on energy companies and firms with overseas profits. “This would offset the positive features of any tax cuts,” one K Streeter says, adding: ‘Right now there just isn’t much trust in the business community in anything Obama does. We just want an end to the uncertainty.'”

CNN,Obama tax breaks: Limited help for small biz“: “NEW YORK ( — President Obama’s plan to offer $200 billion in tax breaks for businesses that invest in plants and equipment would likely have only a limited impact on most small businesses, experts say.”

Larry Kudlow, National Review Online, “Bashing Bush and Boehner Won’t Work“: “While Mr. Bush made plenty of economic mistakes, his 2003 reductions of marginal tax rates led to more than 8 million new jobs in the next four and a half years. Under Bush, the unemployment rate dropped to 4.6 percent…And almost all economists agree that the 2007-08 financial meltdown was a housing-bubble and credit event. It had nothing at all to do with cutting taxes.”

Wall Street Journal, Kevin Hassett, Glenn Hubbard, American Enterprise Institute, “Obama Discovers Incentives“: “Mr. Obama and his team now appear to accept that growth-oriented tax cuts provide a more reliable stimulus than government spending. The investment incentive the administration proposes is meaningful–though not without some potential pitfalls–and it offers a road map for future policy change to emphasize economic growth.”

New York Times, “Tax Cuts May Prove Better for Politicians Than for Economy“: “With Congressional midterm elections looming, the financial debate in Washington this fall will probably be consumed by one incendiary and expensive issue: whether, and how, to extend the multitrillion-dollar Bush tax cuts.”

Wall Street Journal editorial, “The Small Beer Bill: The President has an offer that business is refusing“:

[The Obama Administration’s] new burdens on small business include a looming increase in capital gains and personal income tax rates, roughly half of which will come from noncorporate business profits; a minimum wage increase to $7.25 an hour from $6.55 in July 2009 when the jobless rate was 9%; the oil drilling moratorium, which has hit hundreds of small energy companies; the new health insurance mandate on employers with more than 50 employees; the new ObamaCare 1099 tax filing requirements; an increase in the death tax rate to 55% next year from zero today; a Medicare payroll tax increase to 3.8% from 2.9% starting in 2013; and compulsory unionism for government contractors and federal construction projects (Executive Orders 13496 and 13502.)

The best thing the White House could do now to help small business would be to call for a regulatory, tax and mandate moratorium. As part of his fall campaign strategy, Mr. Obama wants voters to believe that the paltry recovery has nothing to do with his policies. Small business owners know better.

Join the discussion One Comment

Leave a Reply