September 9th, 2010
09:43 AM ET
4 years ago

Obama: Close tax loopholes to juice economy

Washington (CNNMoney.com) - As President Obama pushes a new campaign to juice up the economy, he's starting to fill in the details of how he would pay the estimated $180 billion tab. His plan: Eliminate some corporate tax breaks and subsidies, and close loopholes.

"For years, our tax code has actually given billions of dollars in tax breaks that encourage companies to create jobs and profits in other countries. I want to change that," Obama said in his speech in Cleveland on Wednesday.

If Congress were to pass new economic recovery measures, it could pay for them by raising some $300 billion in new revenue by closing "tax loopholes," according to White House economist Jason Furman.

With Americans nearly as concerned about rising deficits as they are the lackluster economy, the president and lawmakers recognize that any new policy initiatives must be funded.

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Filed under: CNNMoney.com • Economy • issues • President Obama • Taxes
soundoff (31 Responses)
  1. L

    The Republicans will inevitably characterize these as tax increases, but closing loopholes make great sense.

    How about some decent financial reporting on the effective tax rates - as opposed to the nominal rates. What are the effective tax rates for major corporations and the super-rich AFTER all the deductions, tax shelters, and other special benefits?

    I bet many will be surprised how low it is compared to what the middle class pays.

    September 9, 2010 11:17 am at 11:17 am |
  2. phoenix86

    Why don't you start by reducing government spending?

    September 9, 2010 11:18 am at 11:18 am |
  3. Joe

    Let's see how all those fiscal conservatives feel about this? Yeah, Jim Bunning would deny jobless benefits to families who lost their jobs (based upon he wanted to know how it would going to be paid for), but I'd bet that Bunning (and a lot of the others who are screaming about budget deficits) will crawl naked down the streets of Washington in snow if necessary to protect tax loopholes for wealthy corporations. That is why all of this partisanship about the deficit is such BS. Republicans are no better at controlling spending than Democrats. The deficit grew to record levels in the Bush Administration. Of course, there were the extraordinary circumstances of 9/11 and the resulting wars in Iraq and Afghanistan. When you assume the deficit at a record level, along with the challenge of an economy near collapse ... you'd be an idiot not to expect the deficit to grow. That's not a Democrat or a Republican ideology ... it's reality (but seriously, there's little room for reality in partisan politics).

    September 9, 2010 11:19 am at 11:19 am |
  4. water bearer

    Yes, yes, yes, yes, YES!!! This is a GREAT idea and one that is too long overdue! Thank you, once again, Mr. President for doing all you can to get middle class American workers back on the road to financial stability.

    Now . . . . lets hear from all of you TeaPublicans supporters. Let's hear all of the name calling and the lies and the insults that you spew no matter what. Let's in fact, hear from the TeaPublicans themselves about how they are just going to say NO to this.

    Remember this, Democrats. If the TeaPublicans take over the House this November John Boehner will be third in line for the Presidency. If that is not enough to scare every last one of you into getting out to vote for every Democrat you can . . . I just can't think of what it will take!

    September 9, 2010 11:20 am at 11:20 am |
  5. False and Biased brought to you by the GOP

    U.S. companies that move U.S. jobs overseas should not get tax breaks and they currently do. President Obama is right - it's time to close those loopholes, stop rewarding companies that outsource jobs, and stand up for working families. The GOP cares A LOT more about the wealthy corporations who outsource jobs than they do about the working families that suffer because of it. Their pro-corporate no matter what policies have demonstrated that over and over again. A vote for the Democrats in November is a vote for working families.

    September 9, 2010 11:27 am at 11:27 am |
  6. Mark

    PLAY MONOPOLY!!!! This game is the answer to the America's financial problem. I will key you in on how to make the game last forever. #1 If a player starts getting really rich then tax him or cap his winnings so that other players have a chance. #2 The losing players always end up landing on the rich players and never can get back in the game. In the real world we are landing on the rich every time we spend money. The mom and pop stores gone. The game is almost over because there is not enough money to go around to everyone. The rich are holding to much money.

    September 9, 2010 11:32 am at 11:32 am |
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