Obama’s too-small State of the Union Facing a hostile Republican Congress in his last best chance to substantially improve the American standard of living, President Obama thought surprisingly small for a man with grand ambitions. This, year seven, was finally the year in which a strengthening U.S. economy enabled the President to say that he was climbing from the wreckage of the Great Recession to build better futures for working- and middle-class families. Falling unemployment and steady job creation gave rise to Obama’s good mood even as he focused on the painful fact that, for three decades, Americans have been walking up a down escalator, their wages flat or slipping even as costs rose. More than anything, the U.S. needs sustained, significant economic growth in order for workers to regain lost ground. But, on that score, Obama’s prescriptions were underwhelming. While he sketched proposals to invest in infrastructure, including expanded broadband access, he fell short on ramping up investments in basic research; on a commitment to cleaning up an anti-competitive corporate tax code, and on any hope of forward movement on immigration reform. The good news is that across the spectrum, political leaders now seem at least to agree that middle-class malaise is one of the country’s biggest problems. In an intensely polarized climate, that counts as progress. Rather than mount a full, frontal assault, Obama opted for worthy programs that may take the edge off financial pain for millions while playing well in the 2016 presidential election, particularly if Republicans buck. Count it a very good idea to triple the child-care tax credit for working- and middle-class families. And to provide families with a $500 credit when both spouses are working. And to rejigger retirement taxes to help 30 million additional workers save for retirement through private, employer-based plans. Less useful was Obama’s call for free community college for all, the challenge being not to get more students into school but to get more students successfully through school. To pay for his program, Obama called for generating $320 billion in taxes over 10 years. He would raise the capital-gains rate from 23.8% to 28%, the level when Ronald Reagan left office, for those earning more than half a million d ollars. He would require the estates of the dead to pay capital gains taxes on stocks and other assets. And he would impose a .07% fee on the liabilities of the largest American financial firms — which would disproportionately hit New York City. Republicans are, of course, balking. But with majorities in both the House and Senate they are forced to leave obstructionism behind. They must engage Obama with competing ideas for creating the economic climate for which Americans have waited too long. Source: nydailynews/ newsnyork/obamas-too-small-state-of-the-union/
Posted on: Wed, 21 Jan 2015 05:45:53 +0000
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