Promoting freedom, innovation, and growth

Connect with IPI

Receive news, research, and updates

January 19, 2015

Obama SOTU Tax Proposal 'Pokes GOP In The Eye'

Obama Tax Plan Targets Investments, Reneges on Spending Limit Agreement
 

DALLAS – Congressional Republicans should consider an orchestrated, loud guffaw when the president proposes his tax and spending agenda in tomorrow’s State of the Union address, said Institute for Policy Innovation (IPI) president Tom Giovanetti.

In a statement, Giovanetti said:

“President Obama’s State of the Union proposals will apparently demonstrate the same failure to acknowledge reality we’ve come to expect from this president. Instead of recognizing the political reality of a Republican Congress and seeking to work with it, as President Clinton did, Obama seems more interested in poking his opponents in the eye and scoring points with his bedrock liberal supporters at the expense of accomplishing things for the American people.

First, the president is proposing busting the sequester spending caps by $68 billion in this year alone (a seven percent increase over the agreed upon sequester limits), attempting to renege on a rare bipartisan Obama-era agreement with Congress.

With inflation running only about 1 percent, asking government to grow by 8 or 9 percent is absurd. At the same time President Obama takes credit for deficit reduction accomplished through the sequester, he is proposing busting the sequester limits.

And to pay for it, the president wants to raise taxes by a whopping $320 billion, concentrating the new taxes increases on investment—precisely the wrong place to raise taxes if we want economic growth to increase.

As President Reagan reminded us, when you tax something, you get less of it. Investment is the mother’s milk of economic growth, and were President Obama permitted to increase taxes on investment, economic growth would once again stagnate. That’s why Congressional Republicans should consider an orchestrated, loud guffaw when the president proposes his tax and spending agenda.


Tom Giovanetti is president of the Institute for Policy Innovation (IPI), an independent, nonprofit public policy organization based in Dallas. He is available for interview by contacting Erin Humiston at (972) 874-5139, or erin@ipi.org.


 

  • TaxBytes-New

Copyright Institute for Policy Innovation 2017. All Rights Reserved Privacy Policy Contact IPI.

e-resources e-resources