Economy – Obama Policy Good

Economy – Obama Policy Good

Obama has comparatively better short-term economic plan

In his news conference, Romney emphasized four ideas in his plan: expanding domestic energy production, working out trade agreements with Latin America, cracking down on China and cutting the corporate tax rate. These are all reasonable ideas. But working out trade agreements takes a long time. Getting the Keystone oil pipeline up and running takes a long time. Rewriting and implementing a new corporate tax code takes a long time. Changing China’s policies takes a long time. It’s difficult to see how any of these ideas creates a substantial number of jobs quickly. Obama also tends to emphasize four parts of his plan: increasing infrastructure investment, hiring more state and local workers, doubling the size of the payroll tax cut and adding a new set of tax cuts for small businesses and companies that hire new employees. Two of those policies imply directly hiring hundreds of thousands of workers. The other two move money into the economy immediately. It’s easier to see how these policies lead to more jobs and demand in the short term. In terms of the deficit, the Obama administration has put forward a specific set of ideas — mostly by eliminating itemized deductions for wealthier Americans — to pay for its plan. The Romney campaign has not yet said how it will cut corporate and individual tax rates without increasing the deficit. In a sense, what’s really interesting about the Romney and Obama plans is that they don’t conflict with one another. Obama has a set of ideas for boosting job creation now. Romney has a set of ideas for long-term economic growth. You could implement all of Obama’s 41 bullet points and all of Romney’s 59 bullet points simultaneously. There’s nothing about increasing infrastructure investment that keeps you from cutting corporate taxes, for instance. That’s not to say the two campaigns agree on what to do — the Obama administration wouldn’t be happy about repealing the Affordable Care Act, while Romney wouldn’t much like raising taxes on the rich — but it goes to show how focused they are on different aspects of our economic problems. Obama has a plan for creating jobs now. Romney has a plan for changing the regulatory, budgetary and tax environment in which jobs are created later.

Obama economic policy will help the economy – 5 points

Garofalo 12 (PAT GAROFALO is Economic Policy Editor for ThinkProgress.org at the Center for American Progress Action Fund,1.25.12, Think Progress, “Five Good Economic Policy Ideas From Obama’s State Of The Union,” http://thinkprogress.org/economy/2012/01/25/411142/5-good-economic-policy-ideas-obama-sotu/?mobile=nc)

During last night’s State of the Union, President Obama unveiled a series of proposals aimed at addressing growing income inequality, a shrinking middle class, and abuses by the nation’s biggest banks. “We will not go back to an economy weakened by outsourcing, bad debt, and phony financial profits. Tonight, I want to speak about how we move forward, and lay out a blueprint for an economy that’s built to last,” Obama said. Here are five economic proposals Obama laid out that, though they don’t have high prospects of getting through the Republican House, would help achieve the goal of making the economy work for everyone: – WIDESPREAD MORTGAGE REFINANCING: Obama called for a program to give “every responsible homeowner” the chance to refinance their mortgage at lower interest rates. The plan aims to expand a previous administration refinancing effort so that it applies to those homeowners with privately backed mortgages, instead of only those with government backed mortgages. “It’s going to help homeowners who are struggling and it’s likely to be a first step to really opening up the market to more normal credit standards,” said Columbia Business School professor Christopher Mayer. Incidentally, the ten districts that could benefit most from mass refinancing are all represented by Republicans. – MINIMUM TAX FOR MILLIONAIRES: Due to the preferential treatment of investment income and the widespread use of tax deductions, loopholes, and tax havens, one quarter of millionaires are able to drive their tax rates down to a level below that of middle class families. In 2009, nearly 1,500 millionaires paid no income tax at all. To rectify this, Obama proposed a minimum 30 percent tax rate for millionaires. – MINIMUM TAX FOR CORPORATIONS: Many of the country’s largest, most profitable companies have been able to avoid paying corporate income tax on billions in profits, driving corporate tax revenue down to historic lows. Though not as straightforward as simply eliminating the ability of multinational corporations to delay paying taxes on offshore profits, Obama’s proposed minimum tax would limit the ability of corporations to exploit low-tax havens like Ireland or the Cayman Islands. – FINANCIAL FRAUD COMMISSION: Obama last night announced the creation of a commission, co-chaired by New York Attorney General Eric Schneidermann, to investigate and prosecute fraud committed by the financial industry. The administration had been taking some heat for its possible willingness to settle foreclosure fraud charges with the country’s five largest lenders, but this commission is a change of course (assuming it does more than the three year old Financial Fraud Task Force, which has done precisely nothing). – BANK TAX TO FUND AID FOR HOMEOWNERS: The mortgage refinancing plan Obama proposed would be paid for in part by a fee on the nation’s biggest banks (those with more than $50 billion in assets), akin to the Financial Crisis Responsibility Fee that the administration had previously proposed, but dropped due to Republican intransigence.

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