Continuing his series of campaign-style speeches, Barack Obama made another speech today focusing on the middle class.
He made the speech at an Amazon warehouse in Tennessee. Just like last week's speeches, Obama didn't propose anything new (though you wouldn't know that if you listened to the lapdog media).
Obama proposes cutting corporate tax rates from 35% to 28% and to 25% for manufacturers. After all, America has the highest corporate tax rates in the world. But Obama's support for cutting the corporate tax rate is nothing new. If you will recall during the election, Obama and Romney agreed on the need to lower our corporate tax rate. During one of the debates in October 2012, Obama said: “When it comes to our tax code, Governor Romney and I both agree that our corporate tax rate is too high, so I want to lower it, particularly for manufacturing, taking it down to 25 percent.” Well that is exactly what we are now seeing proposed, but it is being painted as a “grand bargain.” Why? Because Obama isn't going to just lower taxes out of the goodness of his heart. He wants … other tax increases and more spending!
Here's part of the reports today on his grand bargain that is conveniently being ignored: “Obama's proposal would generate a one-time source of revenue, for example, by reforming depreciation or putting a fee on accumulated foreign earnings.” What does he insist happens as a result of this assumed revenue? He wants to spend it on “investments” in jobs. In other words, this is nothing more than a liberal tax-and-spend proposal, using the smoke-and-mirror of corporate tax reform to distract people.
While lowering the corporate tax rates in-and-of itself is a commendable idea and I'm glad the president is finally willing to act on it, let's not allow it to distract from other parts of his proposal. And the fact remains that millions of small businesses will not benefit from this proposal because they pay their taxes through their personal income tax returns. Small businesses are the engine of economic growth, the backbone of the middle class, yet Obama remains determined to demonize these business owners who are “rich” and can afford to “pay their fair share.”
In 2009 we spent over $800 billion on Obama's stimulus plan, which was supposed to “save or create” jobs almost immediately. Remember that? It doesn't take a rocket scientist to look around and see that this idea failed miserably. We have fewer Americans working today than when Obama took office and we have more debt than ever before. Why on earth are we to believe than another $50 billion jobs stimulus will be any different?
We already have one stimulus program that wouldn't cost the taxpayer a dime: The Keystone XL pipeline. That's an infrastructure project that wouldn't cost taxpayers, it would create jobs and it would be building something that could have potentially greater economic impact. It wouldn't just be government jobs for the sake of jobs, these would be energy jobs for the sake of progress and energy independence.
Did you know that the Saudi's are now nervous about the spike in natural gas and energy production in the United States? According to the Wall Street Journal, “Saudi billionaire Prince Alwaleed bin Talal warned in a letter to Saudi Oil Minister Ali al-Naimi and others that the U.S. boom of shale oil and gas will reduce its thirst for Saudi crude oil.” This should be great news! The less we need to rely on foreign sources for our energy, the stronger America will be. Energy production within the United States is the greatest jobs creation plan we could possibly ever imagine, though no thanks to Obama and his administration. Instead of giving speeches about the need to “invest in infrastructure,” Obama should be giving speeches on how he is going to unleash energy production within the United States and see the economic vitality of places like North Dakota spread across America. If Obama really cared about the middle class, he wouldn't be so concerned about redistributing the wealth and he would be focused on how to tap into industries proven to create jobs and secure our energy future.