Wednesday, February 22, 2012

The New Strategy

Recently, it seems as though Obama is finally getting his head around the fact that the GOP in Congress simply won't negotiate with him. So, he's switched tactics, and it's working out well for him so far.

His most recent proposal is to lower the tax rate on large businesses and manufacturing companies. It's an idea that has been promoted by the GOP for a long time. What's the catch? Obama's proposal also closes big tax loopholes enjoyed by big corporations, and goes after companies that hide assets overseas. Again, these are things the GOP has supported in the past. The question is, how will they respond to this move by Obama. Their gut reaction, I'm sure, will be to criticize the plan for either not going far enough, or having too many parts to debate. Obama is proposing a cut in the tax rate from 35% to 28%. To put that in perspective, Mitt Romney has called for a corporate tax rate of 25%, Gingrich 12.5%, and Santorum effectively 0%. The argument will likely be that Obama's tax cut is not big enough for the GOP to support.

But they should support it. Mostly, because they have pushed for any kind of tax cut they can get, and this is a big one. It directly benefits their wealthy contributors, and could help the economy. But also, it will result in the closure of tax loopholes and cheats that only benefit big business. In the world of taxes, I don't think it's fair that a multi-national corporation can hide assets overseas, and pay little to no tax to the government, while I have to pay my full amount every year. Remember GE, who got money back from the government after posting record profits. All because of these tax loopholes. The GOP should be all over this.

So far, the story is too new for there to be a lot of response, but I am looking forward to what the Republicans in Congress have to say about Obama's plan.

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