Tax Plan

Obama Tax Plan

Barack Obama announced that it plans to reduce the deficit over the next decade. In light of the first details, it will not be a consensus program minded, but a sum of proposals to quell the discontent of their base curl and the spirits of Republicans. The plan aims to reduce the deficit in 10 years by about three billion dollars that is over two billion euros at current exchange rates. Obama's intention is to raise half of that number based on spending cuts and the other half with new taxes. The cuts were already on the table as Obama administration consisting a commission of 12 members of Congress must decide about the decision. The tax increases are a novel proposal of the president and it seems difficult that the Republican majority in the House of Representatives will approve it.

The intention of the president is targeted to those who pay taxes. In other words, according to Obama's policy, rich are being taxed. So you want to record private jets and donations and raise taxes on Americans with annual incomes exceeding one million dollars. The change is defined by the White House as "the clause Buffett" and responds to the concerns of the investor, who in August wrote an article complaining that pay little tax. Today some 450,000 American millionaires are taxed 15% on the profits generated by their investments (Warshaw,pp. 34-52).

Obama wants tax to be at 35%. Some experts think that the proposal could lead to capital flight and leave the collection more or less the same. All indications are that the president's proposal does not include ambitious reforms or Medicaid or Medicare, state health services for the poor and elderly. One detail that many Democrats greeted with relief, they perceive any change in both programs as a threat.

The program touches the 323 million euros and includes increased spending on public works, the extension of aid to the unemployed and a reduction in social contributions for employees and companies. The president claimed in his speech the support of Republicans, whose votes needed to approve the plan. The first signs were positive: Congressmen Eric Cantor and John Bohner expressed their willingness to consider the proposals and forward it for agreement. But the announcement of new taxes blew the relaxed atmosphere and tensions rose. Rep. Paul Ryan accused Obama of fanning "class struggle" to tax the rich and Senator Mitch McConnell said that "raising taxes in a crisis is an error and will not revive the economy."

The president's tax proposals pose an impossible dilemma for the Republicans and help to harangue the Democratic base, demoralized by a summer that more than ever complicated road to re election. Obama has never been so unpopular and polls warn that the public does not like his economic management. No president since Harry Truman was re-elected with these numbers and none since Franklin D. Roosevelt was reelected with an unemployment rate of over 7%.

Romney Tax Plan

Republican presidential candidate Mitt Romney projected ...