Final Recommendations

Final Recommendations Time to Go Back To The Clinton Era 1. Obama's Proposal Obama to Propose Capital Investment Tax Breaks That Could Save $200 Billion  President Barack Obama on new capital investments are expected to save businesses $200 billion over two years. The cost to taxpayers over the next 10 years would be $30 billion, "with most of the money lost in tax revenue being recouped as the economy strengthens. The expanded tax breaks could benefit "several million people and 1.5 million businesses." President Obama  will call for tax incentives that would allow businesses to write off 100% of new capital investment through 2011  moves that the White House says could save businesses $200 billion over two years. He will also call for a $50 billion infrastructure investment and a permanent expansion of research and development tax credits for companies. The official estimated the cost to taxpayers over 10 years would be $30 billion, with most of the money lost in tax revenue being taken away as the economy strengthens. If Congress passes the administration's proposal to expand the tax breaks to 100%, several million people and 1.5 million businesses would benefit from it. Take from the rich give to the poor. 2. The Myth of Clinton's Tax The Myth of a Return to Clinton-era Taxes During that Clinton era, the rich - and just about everyone else - did quite well. The Clinton years brought the longest economic expansion since World War II, producing 22 million jobs and lowering  unemployment rate of only 4.2%. The last time the top income tax rate was 39%, the United States enjoyed a booming economy, rising incomes, low unemployment and expanding budget surpluses. In 1993, conservatives predicted that Bill Clinton's tax increase on incomes over $200,000 would slow growth, reduce tax revenues, and likely cause a recession. Instead, of course, the economy boomed and revenue skyrocketed. I don’t think that people understand the budget deficit. Here is one way to look at it: The total budget deficit is $1.3 trillion this year, and there are around 110 million full-time American workers. Do the math and you find that the U.S. government is borrowing around $12,000 per worker this year. The president defended his proposal by saying that, for high-income taxpayers, “the tax rates would just go back to where they were under President Clinton.” The president reminded his listeners that the economy grew at a rapid clip during the Clinton years, adding tens of millions of new jobs. The taxes are too high to go back to the Clinton era.