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[Espresso]

WASHINGTON — President Obama, in a bid to break a stalemate with the Republican-controlled House, will announce Tuesday that he will agree to cut corporate tax rates in return for a commitment from Republicans to invest in middle-class jobs.

Using a cavernous Amazon distribution center in Chattanooga, Tenn., as his backdrop, Mr. Obama will describe a “grand bargain” on jobs that White House officials say will stimulate the economy, as well as give businesses the lower tax rates they have long sought. It will be the first new proposal of his economic offensive.

The choice of Amazon will illustrate Mr. Obama’s theme of a resurgence in jobs. The company recently announced it planned to hire an additional 5,000 workers at 17 centers around the country, where it packs and ships customer orders. It currently employs 20,000 people.

Under the terms of Mr. Obama’s plan, the corporate tax rate would be reduced to 28 percent, from 35 percent, with a lower rate of 25 percent for manufacturers. The White House did not offer details on the size of the jobs program.

The Republicans have rejected the bulk of Mr. Obama’s initiatives to create jobs by investing in community college education and public-works projects.

Mr. Obama has proposed to cut corporate tax rates before, but usually in the context of a broader overhaul of the tax code. By presenting the corporate tax cut as a stand-alone proposal, coupled with a jobs program, the White House hopes to make it more palatable to Republicans.

But Republicans were quick to dismiss the proposal, saying it was less a “bargain” than an effort to extract a major new fiscal stimulus program while offering a cut in corporate taxes that was designed to raise billions of dollars in additional revenue.

“It’s the opposite of a concession,” said Brendan Buck, a spokesman for House Speaker John A. Boehner.​

Source: The New York Times

 

[MilesWebber]

Crybabies get what they want from a pushover, news at 11.

 

[equap]

I'd vote for him again if he could run for 2016.

 

[clav]

hope and change

 

[CharlieDigital]

Crybabies get what they want from a pushover, news at 11.

Like many other aspects of his policy making, this is more of a chess move than anything.

1. Put it out there as a reasonable compromise.
2. Let the Republicans shout it down as radical -- as he already knows they will.
3. Show how unreasonable the Republicans are.

It has worked, to a degree.

This policy proposal, as-is, has virtually no way of seeing daylight.

 

[waterydave]

i don't want to live on this planet anymore

 

[EatinOlives]

Crybabies get what they want from a pushover, news at 11.

Actually, according to the article (if I read it right), Republicans are still bitching anyway.

 

[Malvolio]

And the rich get richerererererererererer.

 

[Angry Grimace]

Crybabies get what they want from a pushover, news at 11.

Refusing to take the middle ground is why politics looks like it does, although I doubt this is any kind of legitimate offer from Obama.

 

[Brinbe]

Thanks, Obama.

 

[insignia16]

Finally caved in I see; the world keeps on spinning.

 

[LordCanti]

I'm sure they'll start hiring once their taxes are lower.

 

[AnotherNils]

I'd like to think he's doing this so that if they accept it shows they don't care about deficits if they can get tax cuts, but I don't believe in 11 dimensional chess.

 

[CharlieDigital]

Actually, according to the article (if I read it right), Republicans are still bitching anyway.

At this point, any policy proposal that doesn't involve:

1) Increasing the availability of firearms

2) Decreasing public aid (food stamps, Medi*, Social Security, etc.)

3) Decrease regulations

4) Decrease access to abortion

Has no chance of passing. Obama knows this.

I'd like to think he's doing this so that if they accept it shows they don't care about deficits if they can get tax cuts, but I don't believe in 11 dimensional chess.

It's simple 2D chess; paints the conservative party as rather unreasonable. It's not that hard to do

 

[MilesWebber]

Actually, according to the article (if I read it right), Republicans are still bitching anyway.

Would you expect anything less?

 

[gutter_trash]

Obama is a center-right President. He is pro Wall Street and pro corporate America 1st.

The Left or Center-Left has not existed since FDR

 

[Dali]

Refusing to take the middle ground is why politics looks like it does, although I doubt this is any kind of legitimate offer from Obama.

Some things have no middle ground though. At least not a reasonable one.

 

[DurielBlack]

So Obama got a great deal then! Corporations already don't pay taxes! And he didn't even have to increase their corporate welfare checks as part of the deal!

The human race is such a waste.

 

[reggieandTFE]

Why the fuck is he speaking about the middle class at an Amazon warehouse where most of the workers are temps with limited benefits & job security that don't actually work for Amazon?

 

[Slayer-33]

Have the fucking republicans passed any meaningful legislation through compromise with the president yet? I mean holy fuck.

Obstructionism would be putting it lightly.

 

[Akuun]

Like many other aspects of his policy making, this is more of a chess move than anything.

1. Put it out there as a reasonable compromise.
2. Let the Republicans shout it down as radical -- as he already knows they will.
3. Show how unreasonable the Republicans are.

It has worked, to a degree.

This policy proposal, as-is, has virtually no way of seeing daylight.

But Republicans were quick to dismiss the proposal, saying it was less a “bargain” than an effort to extract a major new fiscal stimulus program while offering a cut in corporate taxes that was designed to raise billions of dollars in additional revenue.

Sounds like it's already working.

 

[LordCanti]

Why the fuck is he speaking about the middle class at an Amazon warehouse where most of the workers are temps with limited benefits & job security that don't actually work for Amazon?

I was watching the morning news earlier and they talked about how most employees were full time with benefits. I can't say whether they're right or you are since I've never looked into it or anything, but that's probably why it seems like a good PR move to showoff the new hiring.

 

[Agnostic]

Finally caved in I see; the world keeps on spinning.

How do you cave on something that you've supported in the past?

 

[Zero Hero]

But Republicans were quick to dismiss the proposal, saying it was less a “bargain” than an effort to extract a major new fiscal stimulus program while offering a cut in corporate taxes that was designed to raise billions of dollars in additional revenue.

Economic Terrorism 101: Any attempt at economic improvement while Obama is president will be swiftly met with scorn and denouncement.

 

[watershed]

It's not a bad deal depending on what the jobs programs actually are. Obama outlined major moves to spur more manufacturing in the US so that tax cut was probably previously planned and not a concession to republicans.

 

[Akuun]

Have the fucking republicans passed any meaningful legislation through compromise with the president yet? I mean holy fuck.

Obstructionism would be putting it lightly.

If American politics was an actual chess game, both players would probably have flipped the table over and gone into fisticuffs already.

 

[ToxicAdam]

I'm sure they'll start hiring once their taxes are lower.

[*]Tired-ass meme that has no relevance[*]

Not even Reagan would stoop this low.

Reagan also raised the gas tax and signed the largest corporate tax increase in history,

http://www.cbsnews.com/8301-503544_162-20030729-503544.html

 

[reggieandTFE]

I was watching the morning news earlier and they talked about how most employees were full time with benefits. I can't say whether they're right or you are since I've never looked into it or anything, but that's probably why it seems like a good PR move to showoff the new hiring.

From what I know, when the workers are receiving hours they do get "full-time" hours; in fact, they are often asked to work 70+ hour weeks. However, they are only hired on a temporary basis which means that they have no guarantee of future employment past a couple of weeks. Additionally, without any job security, there are often blacklists at the hubs for those who complain about poor working conditions.

 

[OfWhiteSkinOnRedLeather]

This man is a piece of garbage. As bad as any Republican.

 

[Deleted member 13876]

If American politics was an actual chess game, both players would probably have flipped the table over and gone into fisticuffs already.

So chessboxing?

 

[InsaneZero]

This man is a piece of garbage. As bad as any Republican.

He can't be as bad as the Republicans that refuse to accept the compromise.

 

[Vicetrailia]

I was watching the morning news earlier and they talked about how most employees were full time with benefits. I can't say whether they're right or you are since I've never looked into it or anything, but that's probably why it seems like a good PR move to showoff the new hiring.

Never trust the news when it comes to this, because these companies always paint a different picture with PR as you stated. For example at Lenovo in NC, most of their workers are employed through a Temp company making $11 an hour with no benefits, however, the news painted the picture that said employees are employed by Lenovo itself, with good pay and all the shebang.

 

[Leunam]

There sure are a lot of people here who thought this even had the slightest chance of happening. Compromise and Republicans hasn't exactly been a winning combination most of the time under Obama.

 

[NYCmetsfan]

I don't see how this is anything more than progress for liberals. He's dropped the entitlement cuts. He's asking for more money to spend on jobs.

The only thing he's giving is changing the Tax Rate for rich corporations which they already never pay. Which doesn't seem to in my eyes 'hurt' the middle class. I mean I think it sucks on principle as I don't think they're paying their fair share but in practical terms this would seem to make things better for the middle/working class without harming them like his other proposals have done (cutting SS, discretionary spending cuts.)

 

[Quackula]

Like many other aspects of his policy making, this is more of a chess move than anything.

1. Put it out there as a reasonable compromise.
2. Let the Republicans shout it down as radical -- as he already knows they will.
3. Show how unreasonable the Republicans are.

It has worked, to a degree.

This policy proposal, as-is, has virtually no way of seeing daylight.

Yeah this. He's done stuff like this before, after all.

Republicans don't even realize he's just giving them rope to hang themselves.

 

[Vyrance]

Surprise surprise, Republicans refuse it anyway

 

[delirium]

Some of you guys are just as bad as the Republicans you denounce. Politics, like many things in life is give and take; sometimes you have to give up a little of your principles to actually get things done.

 

[SlickShoesRUCrazy]

le sigh.

seriously, screw these corporate douche bags. tax the fuck out of them already. even with tax breaks they won't create jobs.

The government shouldn't have to negotiate with these dbags. It's becoming very tiresome seeing the government bend over for them instead of the people.

 

[gutter_trash]

so Obama is more right wing on taxes than Reagan ever was

 

[CyclopsRock]

This is good. Small businesses need all the help they can get - and so do a lot of big ones, remember. 25% on manufacturing specifically will help those struggling to find meaningful work that don't have a college degree, as well as improve American exports and increasing domestic supply. It also makes the US a more attractive place for investors to put their money, which helps with the creation of new businesses, and the lower tax helps the development of new products which have risk involved.

Lovely.

 

[daycru]

Obama has been "playing the long game" for half a decade. I don't think there's some master plan, he just seems to be a bad President.

 

[CharlieDigital]

This is good. Small businesses need all the help they can get - and so do a lot of big ones, remember. 25% on manufacturing specifically will help those struggling to find meaningful work that don't have a college degree, as well as improve American exports and increasing domestic supply. It also makes the US a more attractive place for investors to put their money, which helps with the creation of new businesses, and the lower tax helps the development of new products which have risk involved.

Lovely.

Decreasing taxes would have little effect on increasing demand.

Without increasing demand, hiring doesn't increase.

Decreasing corporate taxes would have virtually no effect on job growth.

 

[Armoured Priest]

I don't see how this is anything more than progress for liberals. He's dropped the entitlement cuts. He's asking for more money to spend on jobs.

The only thing he's giving is changing the Tax Rate for rich corporations which they already never pay. Which doesn't seem to in my eyes 'hurt' the middle class. I mean I think it sucks on principle as I don't think they're paying their fair share but in practical terms this would seem to make things better for the middle/working class without harming them like his other proposals have done (cutting SS, discretionary spending cuts.)

Of course they're against this...big corporations already don't pay, as you say. So what this could have done is give small business a bit of a fighting chance with a lower corporate tax rate (especially with ACA coming up, there have been a number of reports about how people are wait for ACA to leave their jobs and start their own businesses because it'll potentially become a good bit easier for them to afford health care on their own).

Of course this ignores the number of other reasons already mentioned (purposful obstructionism, playing politics to give the GOP more rope to hang itself, ect...)

 

[UltimaPooh]

Like many other aspects of his policy making, this is more of a chess move than anything.

1. Put it out there as a reasonable compromise.
2. Let the Republicans shout it down as radical -- as he already knows they will.
3. Show how unreasonable the Republicans are.

It has worked, to a degree.

This policy proposal, as-is, has virtually no way of seeing daylight.

I would say that after almost 5 years this part of the damn chess game should be over.

Everyone knows the Republicans are completely unreasonable. What the American people want is action not continuous back and forth.

 

[T'Zariah]

at people thinking this is a serious proposal. He's legislatively giving them a rope to hang them themselves with.

 

[RustyNails]

I think its a good payoff.

 

[Buddha Beam]

Like many other aspects of his policy making, this is more of a chess move than anything.

1. Put it out there as a reasonable compromise.
2. Let the Republicans shout it down as radical -- as he already knows they will.
3. Show how unreasonable the Republicans are.

It has worked, to a degree.

This policy proposal, as-is, has virtually no way of seeing daylight.

They said that about things like the sequester, too. We hear a lot of that whenever Obama does something like this and it's always the same old story.

Although I guess the sequester fucked people over, whereas this helps people... so Republicans were ok with it passing.

 

[Tylahedras]

Amazon is like Obama's ideal company. Based in a liberal city, very large, employs lots of people, makes no money.

 

[creationtheory]

Don't a lot of economists on both sides agree that, while unpopular, we should significantly reduce the corporate tax and eliminate tax deductions for home ownership?

 

[CyclopsRock]

Decreasing taxes would have little effect on increasing demand.

Without increasing demand, hiring doesn't increase.

Decreasing corporate taxes would have virtually no effect on job growth.

In a vacuum, sure, but there's a big, wide world out there! The products don't have to be consumed in the US for them to be sold. Besides, larger profit margins allow for (but do not necessitate, of course) greater competition on price and the ability to justify the creation of more risky new products and innovations (because it might be deemed that attempting product X isn't worth it for reward Y, but now that it's Y+saved tax revenue, it might be worth it. This is why, even though Corporation Tax is a tax on profit and not revenue, it can still encourage new products etc).

Ultimately, businesses end up with more money in their pockets. They won't necessarily spend that on investment and expansion - after all, a lot of large companies out there have buckets of money but are hesitant to invest at the moment. They might be large, but they aren't normal - for a lot of businesses out there, a small change in the tax rate might be the difference between surviving or not, or having a good year or bad. For those businesses, those that run them and those that work in them, it could have a huge, positive difference.