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.

Full story


Filed under: CNNMoney.com • Economy • issues • President Obama • Taxes
soundoff (31 Responses)
  1. Von Bismark-Vienna

    Standing up against corporate America is like standing up against the Italian mafia.I fear for this President!

    September 9, 2010 09:49 am at 9:49 am |
  2. Marty, FL

    Good to hear. It is past time to close misguided tax loopholes that send our American jobs overseas. The investments could then be used to create infrastructure projects & jobs in America.

    Godspeed, Mr. President.

    September 9, 2010 09:54 am at 9:54 am |
  3. T'SAH from Virginia

    This sounds much better than keeping the TAX CUTS for the next two years so that the RepubliCAN'Ts and BIG CORPs and BIG BANKS will benefit from $$$$$!!!

    The RepubliCAN'Ts think Americans are stupid... well at least their followers and maybe they are not to see through this!!!

    PLEASE – DEMOCRATS – Make your CASE – unite the BASE and win this RACE in November!!!! Yes We Can!!

    September 9, 2010 09:55 am at 9:55 am |
  4. Eric

    I agree... let's close AAAAALLLLL the tax loopholes, TO EVERYONE, and go to one flat tax bracket for everybody, with no exemptions for anything.

    Or, to completely remove the middleman taxman altogether, just go to a consumption tax for every purchase for every person in the country, no exceptions.

    If you TRULY were concerned about "fairness" that's what you'd do.

    But Democrats have never been about fairness... they've always been about instigating class envy for the purpose of political juicing... using the tax code as a billy club to purchase votes and power.

    September 9, 2010 09:55 am at 9:55 am |
  5. Spence40

    So far, every bit of legislation that President Obama has come up with has literally slowed economic recovery. Tax breaks aren't going to offset the Credit Card Interest Rate increases from 8-10 percent to 12-13 percent that was allowed when the president protected us from fraudulent fees and surcharges. The redit Card Companies got to increase their Interest Rates instead and made billions on the trade off which allowed huge interst increases while protecting the irresponsible people from getting 35 to 50 dollar fees. Now , I'll just bet that the Credit Card companies and Banks are just crying over a 25 dollar loss while chortling over a 2-3 percent interest rate increase. This Interest rate increase suspended spending by the people that do the most shopping and caused huge hardship top people that were 15-20,000 dollars in debt to start with. Great move on stopping any consumer spending when it is most needed!

    September 9, 2010 09:57 am at 9:57 am |
  6. obozo

    Rasmussen- obama approval rating at 41%

    September 9, 2010 10:03 am at 10:03 am |
  7. jim

    Closing loopholes is just a fancy way of saying what you don't want to say which is "rasing taxes" .Do these Obama folks think we are that stupid?

    September 9, 2010 10:06 am at 10:06 am |
  8. Mark from Louisiana

    I wonder if he will close the loophole that allows 47% of Americans to pay NO income tax while getting "earned income tax credits" or "earned income child care credits".

    Everyone in the country should share in the tax burden. If you won't work and pay taxes you shouldn't get government benefits.

    September 9, 2010 10:10 am at 10:10 am |
  9. Boston Kathy

    The President, Democrats and Unions do not know how to create jobs. They only know how to kill them. The latest cut taxes/raise taxes speech from the President will do nothing to create a climate in which small businesses will create jobs.

    September 9, 2010 10:11 am at 10:11 am |
  10. Bedtime for Obonzo

    "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.

    That's a misprint, right? Or does he seriously mean that he wants to end "tax breaks" that "encourage companies to create jobs"?

    So the plan is to extract an additional $180 billion from the private sector to fund Stimulous III. November can't come soon enough.

    September 9, 2010 10:21 am at 10:21 am |
  11. carmikal

    Might as well hit these companies hard! They are not hiring anyone and are not doing anything to help anyone but themselves.

    September 9, 2010 10:24 am at 10:24 am |
  12. Hogwash from the great 57th state of obama's mind

    What encourages companies to move jobs overseas is to remain competitive in the world market since the US workforce is far more expensive than the overseas market.

    Obama needs to understand that maybe giving tax breaks for keeping production inside the US is a better way to keep jobs than to punish companies by raising taxes thus giving companies no other choice than to move jobs to cut costs and remain competitive world wide.

    We need a president who understands our economy before we can fix it. Taxing the rich and corporations moves investments dollars out of the US economy, but wins votes from unintelligent people.

    Luckily, people are wising up and we won't have to deal with this another 4 years. Bush had it right and it showed for 6 years until the democrats got control of Congress and everything went wrong.

    September 9, 2010 10:27 am at 10:27 am |
  13. Orlando Patriot

    Don't let this incompetent president fool you – – – when you pay MORE in taxes this year versus last year it is called a TAX INCREASE!! Obama is doing his best to tell people we will increase tax revenue without tax increases. How to do that? Well, "rescind the Bush tax cuts", "close tax loopholes", "let the capital gains tax rate return to it previous rate", etc. THESE ARE ALL TAX INCREASES!! And any time you INCREASE taxes you create more unemployment and a decrease in productivity. Obama is killing this economy INTENTIONALLY and about 40% of you who support Obama are STILL too stupid to see this!!

    September 9, 2010 10:28 am at 10:28 am |
  14. Ron in Califonia

    If you read about Reagan's tax policies...that what he did. Is there a conversion in play...

    September 9, 2010 10:31 am at 10:31 am |
  15. jules sand-perkins

    Taxes and handouts are not to answer.
    Make-work jobs are not the answer.
    The overpayment of union workers is not the answer.
    Aspiration and personal responsibility are the answer.

    September 9, 2010 10:35 am at 10:35 am |
  16. Romney/Gingrich in 2012

    Hey Obama, why not make the tax system easier to understand. I say that we install a flat tax. That solves loopholes, allows ALL Americans to pay their share and increases revenue.

    I don't understand how liberals feel that they have a right to the money of 'the rich'. Take responsibility and earn your own money. Historically, the free market system is the only economic system that allows for upward financial mobility (without violence).

    Obama also needs to stop preaching class 'warfare' - and libs need to stop buying into it.

    p.s. I'm not considered rich.

    September 9, 2010 10:38 am at 10:38 am |
  17. Dean

    Obama you want to juice the economy? It is really quite simple. Bring our jobs back home from foreign lands.

    September 9, 2010 10:41 am at 10:41 am |
  18. ThinkAgain

    Perfectly right, Mr. President! It's time people called these corporations on their selling-out of America.

    Corporations are always crying for tax cuts so they can "create jobs." And they do: overseas where labor is cheap and environmental regulations don't exist.

    What's particularly despicable is the way corporations purposefully mislead voters, telling them that not giving the already-wealthy more tax cuts is anti-American, unpatriotic and (horror of horrors) somehow going to lead our country down the path to Communism/Socialism/Fascism (take your pick).

    The reality is the continued job loss here in the United States due to corporations shipping jobs overseas is leading us down the road to becoming a third-world nation, where a few wealthy families control and own everything, and the majority of the population lives in poverty.

    September 9, 2010 10:41 am at 10:41 am |
  19. Jeff of Peoria

    "His plan: Eliminate some corporate tax breaks and subsidies, and close loopholes."

    What?? I'm totally confused!! So he can get more cash out of the private hands and control where it goes. Give it to the poor Professors that only make $500,000 a year a do nothing but bad mouth America. That's his MO.

    But how does that help the economy?? He's not going to pay down the debt.

    September 9, 2010 10:47 am at 10:47 am |
  20. George Guadiane - Austerlitz, NY

    Pardon Me Mr President, but close the loopholes because it is the proper thing to do for working class Americans.

    Why should low and middle income TAXPAYERS give tax breaks or subsidies to profitable industry?
    For one thing, they are shipping jobs off shore. But the important thing is THEY ARE ALREADY PROFITABLE they don't need our help. People out of work, people in jeopardy of losing their homes, homeless people need our help – help them.

    September 9, 2010 10:52 am at 10:52 am |
  21. Marcus

    '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.'

    Unlike GWB who liked to fund wars with thin air (aka deficit), he plans to have money to spend it on American soil and for American workers.
    But here comes the 'tax cut crusaders' and their usual baseless claims that 'Hey! They work!'...

    September 9, 2010 10:54 am at 10:54 am |
  22. Randolph Carter, I'm no expert, but...

    And, of course, the neoclowns will try to scare us with the "job killer" meme. But they've got it bass ackwards. When you outsource and let middle and working class wages stagnate for 30 years for the sake of corporate profit, you wind up with a large portion of the population unable to afford the cheap junk and shoddy services you're selling. Who do you think is going to buy a new refrigerator this year, some Chinese sweat shop worker? So what do you, as a capitalist do? You offer everyone easy credit to get them to keep spending until they're leveraged to the eyeballs. Pretty soon everyone's in debt and you're creating "wealth" by gambling on that debt load and the whole thing comes crashing down. Global capitalism will eat itself eventually due to uneven distribution of its rewards and the necessity of constant warfare for dwindling resources just as communism did and there's nothing you neoclowns can do about it. Have a nice day!

    September 9, 2010 10:56 am at 10:56 am |
  23. Claudia, Houston, Tx

    Until people understand how and why the rich remain rich due to the tax loopholes, they will remain less informed as well as pay higher taxes than the rich. Republicans won't tell you this because they depend on us remaining uninformed.

    September 9, 2010 10:57 am at 10:57 am |
  24. dlbartz1978@yahoo.com

    Once again, he doesn't get it. We are in a global economy and American companies can only compete if the jobs are overseas. If they take these breaks away the cost will flow downhill to the consumer OR Americans will be forced to buy from a foreign country. Taxing businesses is not the way to go. Why doesn't he get this? Oh yeah, it's cause he has never held a real job and has no one in his administration who has. Go figure.

    September 9, 2010 11:00 am at 11:00 am |
  25. Andy

    Unfortunately, this is likely to go nowhere – the republicans will never vote for legislation that takes away the wasteful giveaways for their benefactors, corporations. The hypocritical republicans aren't working in the best interests of our nation – but rather for their own party and corporations.

    September 9, 2010 11:00 am at 11:00 am |
1 2