If, as the trial balloons would have us believe, the White House will soon announce a new plan to promote jobs creation by lowering business taxes, President Obama has sure chosen a strange way to preview it — hailing his Administration’s success in winning a multibillion-dollar tax increase on business. From his weekly radio address:
We also ended a tax loophole that encouraged companies to create jobs overseas. Instead, I’m fighting to pass a law to provide tax breaks to the folks who create jobs right here in America.
The President is no doubt referring to H.R. 1586, the Education Jobs and Medicaid Assistance Act, which sends federal taxpayer dollars to the states to pay for public employee salaries and other state government spending. Included in the legislation, signed into law on Aug. 10, was $9.6 billion in new taxes on businesses with overseas operations. As the NAM’s Key Vote letter to the House explained:
An estimated 22 million people in the United States – more than 19 percent of the private sector workforce and 53 percent of all manufacturing employees – are employed by companies with operations overseas. Manufacturers feel strongly that imposing $9.6 billion in tax increases on these companies as proposed in the Senate Amendment to H.R. 1586 will jeopardize the jobs of American manufacturing employees and stifle our fragile economy.
Some of the proposed tax increases, which are mischaracterized as closing tax loopholes, actually represent significant changes to pro-growth tax policy supported by Congress and the Administration.
So this week, the President touts his “fight” for tax increases on employers. Next week, he may tout his fight for tax reductions on employers.
Talk about your uncertainty.
P.S. In his brief address today, there were four references to the Administration’s “fight” or “fighting,” the most powerful word in populism’s lexicon.
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