Obama Tax Deal Draws Praise From His Critics in Business Groups

[Godhumor]

Source: Bloomberg

Dec. 7 (Bloomberg) -- President Barack Obama won praise from business groups that have criticized his labor, health and financial regulatory policies after he agreed to extend tax cuts for all Americans and cut workers’ payroll taxes.

Obama’s deal with Republicans in Congress to maintain for two years the Bush-era tax cuts that are to expire this month and give businesses more write-offs on research and machinery costs will boost the economy by removing uncertainty that led to the complaints from business executives, Bruce Josten, chief lobbyist for the U.S. Chamber of Commerce, said today.

The agreement “is one of the best steps Washington can take to eliminate the uncertainty that is preventing our employers from hiring, investing, and growing their businesses,” Josten said in an e-mail. It will “go a long way toward helping our economy break out of this slump and begin creating American jobs.”

...

The tax deal is the second administration overture in a week praised by the Chamber and business executives. They also said that a deal on Dec. 3 to push ahead with a South Korean free-trade agreement will help the economy.

Read more: http://noir.bloomberg.com/apps/news?pid=20601087&sid=aD4ysLqQnpGQ&pos=9

---

Glad that the middle class and the unemployed are gaining some relief. That said, when both the right and the left are unhappy with the compromise, but the Chamber of Commerce is thrilled...well, that tells me something.

[fascisthunter]

1. I guess Sucking up to the Wealthy is paying off

congrats

[mediaman007]

3. Like Bush*, Obama finds his kind of people!

[FiveGoodMen]

20. The Haves and the 'Have absolutely all of it any day now's

[SoulSearcher]

24. one of the suck-up lists....

Waiver listing of what's left of Healthcare
http://www.hhs.gov/ociio/regulations/approved_applications_for_waiver.html

I don't know what the message is anymore.

[calimary]

33. Even so, it won't pay off for him in two years. They're not going to view him as a

good investment when there'll be republi-CONS running out of every faucet on Wall Street and K Street sweet-talking them in the language they understand.

When would some fat cat want to risk it on Obama, when they can have the real, and sure, thing?

I'm sure he's hoping he's bought their loyalty or at least their patience.

:rofl:

[Name removed]

2. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Atman]

4. How on Earth with it eliminate "uncertainty" if it's only temporary?

Total, 100% BULLSHIT. The bankers and business leaders have been holding the American economy hostage until they got their tax cuts. A two year extension doesn't eliminate any uncertainty...unless they're certain they will be extended again. What a crock this whole exercise is. We've been totally played.

[Godhumor]

8. Uncertainty this case means the uncertainty of research

Essentially, businesses wanted writer-offs to risk making something new. Because, if it didn't work, they'd be out a shitload of money. The agreement eliminates some of the uncertainty around returns in developing new technology, etc.


edit: used the words tax breaks instead of write-offs.

[mbperrin]

15. Actually, tax cuts discourage risk-taking, including research.

Here's how it works: Your company undertakes a new product, program or research project. They spend $10 million. It doesn't work out. If the top tax rate is 70%, you can deduct $7 million of your loss from your taxes. You really only risked $3 million. Uncle Sam is your partner in risk.

Now cut taxes in half to 35%. Now your writeoff is only $3.5 million. Your risk actually doubled, thereby inhibiting that behavior for any rational business.

Want to stimulate research and risk-taking? Put a 90% tax rate on. This would match the 92-93% rates in the 1951-1954 US history. What do we remember about the 50s? Yes, prosperity.

Tax rate info at: http://en.wikipedia.org/wiki/Income_tax_in_the_United_States

[Godhumor]

17. This isn't tax cuts for machinery and research, it is additional write-offs

Tax shield won't come into play as a gain/loss.

edit: I miswrote in my previous post. Apologies and will go edit.

[RUMMYisFROSTED]

5. Aka: Bob Dole is a Communist.

[madrchsod]

30. bob dole was a democrat but was told if he wanted to be elected...

he`d have to become a republican. ronnie reagan endorsed hubert humfrey in 46. history is littered with democrats that decided to become republicans

[Historic NY]

31. sell outs, history is loaded with them.

[bowens43]

6. yes, the cons love him.........nt

[Blue_Tires]

7. and the chamber is still going to spend twice as much to defeat dems in the '12 races

[harun]

11. Damn right they will. New rules turn them in to a monster.

[benfranklin1776]

26. Yes and by the way wasn't he supposed to push for the Disclose Act again before the Rethug takeover?

Haven't heard a whisper about it as a legislative priority in this session.

[ellie]

9. Thank god they are happy!

You don't want to go pissing off the money men. The rest of us? Who cares about us?

[harun]

10. Well if the CoC is happy I'm sure all of us here at DU will be just peachy.

[Lint Head]

12. This tax break has been in place for years and business did

not invest. What all of a sudden is the damn difference now?!

[gratuitous]

13. See? And you libruls say there's nothing positive about this capitulation

We got extension of benefits for some of the unemployed, and now business leaders are going to have to find something else to gripe about. So that's, like, two good things that have come out of this political catastrophe. Totally worth trading away social security!

[myrna minx]

14. K&R n/t

[Frisbee]

16. And that, my DU friends (the OP title) is all you need to know.

:grr:

[glinda]

18. Praise him then give their money and support to either Teas or Repubs as usual.

The rich Bidness people are so used to being fickle verbally and easily lavish praise while not meaning it with any depth.

[elocs]

19. So, Obama receives praise from his critics while his base walks away in discouragement.

Good luck in getting that base back because too many of them are likely gone for good by now.

[BrklynLiberal]

21. If they like it, you can bet it is going to screw everyone else.

Wonder which big corporation he will be working for in 2012

[newspeak]

36. after watching Michael Moore's "Capitalism, a Love Story"

It made be think about FDR, and boy, did that man have some true "audacity." I believe it was the steelworkers were striking the "pro-fascist robber barons (owners)" and the workers took over the factory. Well, the owners had the pinkertons and the local police on their side-but the workers put their lives on the line and here comes FDR bringing in the national guard to protect the workers from the corporate establishment.

Bet you won't see anything like that again. If the anti-american, anti-labor, pro-global greedheads, chamber of commerce likes this deal, then I'd say it smells rotten.

[Yavin4]

22. Jobs Should Be Pouring In Now, Right?

Esp. since all that uncertainty is gone. Yeppers. Plenty of jobs over the next 6 mos.

[Name removed]

23. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Roy Rolling]

25. Praise?

Yeah, they will always temporarily praise whoever kisses their ass. But when the ass-kissing stops, the honeymoon is over. Then they will say "who is this anti-business Socialist Muslim who refuses to kiss my ass anymore?"

[ibegurpard]

27. file that one under no shit

[downeyr]

28. When you've drawn praise from those who oppose you...

it's best to go back and try to see what you've done wrong.

[pmorlan1]

29. Pathetic!

And yet another in a long, long line of major disappointments delivered by this President.

[Optimistic]

32. How long till Fox endorses for another term

[LiberalLovinLug]

34. Finally!!!!

They like me, they really really like me.

http://pictures.directnews.co.uk/liveimages/Barack+Obama_1961_19716611_0_0_7053789_300.jpg

[rocktivity]

35. Candidate for this year's "You Call This NEWS?" award

Why shouldn't they be praising him? He just handed them another truckload of money that they're going to keep in the form of salaries, bonuses, and stock dividends, and pay out in campaign contributions and national media support. The tax cuts haven't helped the economy in 12 years, why would they start now?

:eyes:
rocktivity

[newspeak]

37. okay, they've had the damn tax cuts for about seven

fekkin years. What is the damn difference now? They've been pouring all of those tax cuts into overseas ventures, not helping americans. Tell me what the difference is now?