President Obama today plans to effectively demand that taxpayers fund his jobs plans, saying tax increases that might be used to offset tax cuts long coveted by business should be rolled into financing his agenda instead of keeping things deficit-neutral.
Speaking in Chattanooga, Tennessee on the latest stop in his soak-the-rich speaking tour, Obama will propose a scheme that is effectively a new spending outlay, since the deficit would rise.
Hoping to break an impasse, President Barack Obama today will extend a new offer to congressional Republicans in which he would back an overhaul of the corporate tax system in exchange for a guarantee that a resulting one-time windfall be used to underwrite various job creation proposals . . .
“As part of his efforts to focus Washington on the middle class, today in Tennessee the president will call on Washington to work on a grand bargain focused on middle class jobs by pairing reform of the business tax code with a significant investment in middle class jobs,” said Dan Pfeiffer, senior adviser to the president.
Republicans want to use any tax revenues that come in to offset the breaks given to business, holding harmless the deficit instead of creating new debt-financed social spending.
Tax neutrality is the cornerstone of “tax reform,” a concept long pushed by both Democrats and Republicans under which the code is made more efficient in a revenue-neutral way. But Obama and Congressional Democrats are trying to change the formula to make reform a net tax increase.