State of the Union 2012: Obama on payroll tax credit & tax reform
Excerpt from the State of the Union 2012 – President Barack Obama on payroll tax credit and tax reform:
“A return to the American values of fair play and shared responsibility will help protect our people and our economy. But it should also guide us as we look to pay down our debt and invest in our future.
“Right now, our most immediate priority is stopping a tax hike on 160 million working Americans while the recovery is still fragile. People cannot afford losing $40 out of each paycheck this year. There are plenty of ways to get this done. So let’s agree right here, right now: No side issues. No drama. Pass the payroll tax cut without delay. Let’s get it done.
“When it comes to the deficit, we’ve already agreed to more than $2 trillion in cuts and savings. But we need to do more, and that means making choices. Right now, we’re poised to spend nearly $1 trillion more on what was supposed to be a temporary tax break for the wealthiest 2 percent of Americans. Right now, because of loopholes and shelters in the tax code, a quarter of all millionaires pay lower tax rates than millions of middle-class households. Right now, Warren Buffett pays a lower tax rate than his secretary.
“Do we want to keep these tax cuts for the wealthiest Americans? Or do we want to keep our investments in everything else –- like education and medical research; a strong military and care for our veterans? Because if we’re serious about paying down our debt, we can’t do both.
“The American people know what the right choice is. So do I. As I told the Speaker this summer, I’m prepared to make more reforms that rein in the long-term costs of Medicare and Medicaid, and strengthen Social Security, so long as those programs remain a guarantee of security for seniors.
“But in return, we need to change our tax code so that people like me, and an awful lot of members of Congress, pay our fair share of taxes.
“Tax reform should follow the Buffett Rule. If you make more than $1 million a year, you should not pay less than 30 percent in taxes. And my Republican friend Tom Coburn is right: Washington should stop subsidizing millionaires. In fact, if you’re earning a million dollars a year, you shouldn’t get special tax subsidies or deductions. On the other hand, if you make under $250,000 a year, like 98 percent of American families, your taxes shouldn’t go up. You’re the ones struggling with rising costs and stagnant wages. You’re the ones who need relief.
“Now, you can call this class warfare all you want. But asking a billionaire to pay at least as much as his secretary in taxes? Most Americans would call that common sense.
“We don’t begrudge financial success in this country. We admire it. When Americans talk about folks like me paying my fair share of taxes, it’s not because they envy the rich. It’s because they understand that when I get a tax break I don’t need and the country can’t afford, it either adds to the deficit, or somebody else has to make up the difference — like a senior on a fixed income, or a student trying to get through school, or a family trying to make ends meet. That’s not right. Americans know that’s not right. They know that this generation’s success is only possible because past generations felt a responsibility to each other, and to the future of their country, and they know our way of life will only endure if we feel that same sense of shared responsibility. That’s how we’ll reduce our deficit. That’s an America built to last.”
- WhatTheFolly.com: Transcript: President Barack Obama’s 2012 State of the Union address
- WhatTheFolly.com: Transcript: GOP response to the President’s 2012 State of the Union address
- WhiteHouse.gov: 2012 State of the Union Address Enhanced Presentation
- WhiteHouse.gov: Blueprint for America Built to Last (PDF)
Category: Congress, Current Events, Economy, Election 2012, Government, Politics, Tax Policies, Transcripts, U.S. · Tags: concentration of wealth, debt, deficit reduction, drastic budget cuts, economic recovery, income and wealth gap, Medicaid, Medicare, middle-class, millionaire, payroll tax, President Barack Obama, reduce deficit, seniors, Social Security, SOTU, State of the Union 2012, tax deductions, tax loopholes, U.S. tax reform, wages, Warren Buffett