Some of President Obama’s most unsung accomplishments are in the areas of taxes and deficit reduction. \u00a0What appears to be little known is that the 2009 Recovery Act included a $275 billion tax cut for the middle class and working poor. \u00a0It was the largest middle class tax cut in U.S. history.<\/p>\n
Another virtually unknown accomplishment is the progress President Obama has made reducing the deficit. \u00a0When President Obama took office, the deficit was $1.3 trillion and 9.8% of GDP. \u00a0By fiscal year 2015, the deficit had been reduced to $450 billion or 2.6% of GDP. \u00a0It is the fastest rate of deficit reduction since the late 1940s.<\/p>\n
The top three finishers in the Iowa GOP caucuses would destroy President Obama’s progress on the deficit with multi-trillion tax cut schemes that would provide a huge windfall for large corporations and the super wealthy. \u00a0 The rest of the country would be required to finance these regressive tax plans in the form of much higher deficits or even higher taxes for the poor and the middle class.<\/p>\n
GOP front runner Ted Cruz’s radical tax scheme contains a huge tax increase on senior citizens, the middle class and the poor. \u00a0This is because the Cruz plan has a 19% national sales tax that\u00a0would apply to all purchases of goods and services made in the United States. \u00a0Under the Cruz plan, something that costs $1 today would start to cost $1.19.<\/p>\n
Cruz uses this tax increase on the poor and middle class to (partially) finance a big tax cut for the super wealthy and the corporations. \u00a0Cruz would reduce the top individual rate from 39.6% to 10%. \u00a0Moreover, the GOP front runner’s plan would eliminate all taxes on corporations and estates. \u00a0This radical plan would add $3.7 trillion to the deficit over the next ten years.<\/p>\n
The cost of the Cruz plan is relatively “cheap” when it is compared to Trump’s plan. \u00a0The billionaire entertainer’s plan would add $9.5 trillion to the deficit over the next ten years. \u00a0Trump would borrow trillions of dollars to finance a reduction in the top individual rate from 39.6% to 20%, reduce the top corporate rate from 35% to 20% and to completely eliminate the estate tax. \u00a0In order to keep his promise to balance the budget, Trump would need to cut spending by 20%.<\/p>\n
Rubio has been described by many in the mainstream press as a “moderate’ but there is nothing moderate about his risky tax scheme. \u00a0Rubio would essentially exempt the super wealthy from all federal taxation by eliminating taxes on capital gains, dividends and estates. \u00a0The average top 1 percenter would receive an annual tax cut in the amount of $224,000.00. \u00a0These huge tax cuts for the wealthy would increase the deficit by $11.8 trillion over the next decade.<\/p>\n
All of these Republican tax plans contain provisions in which the middle class and the poor would get a small tax break. \u00a0Those modest tax cuts provide political cover for the windfall for the wealthy and was a tactic that George W. Bush used to market his tax cuts for the wealthy.<\/p>\n
Hillary Clinton’s and Bernie Sanders’ plans for taxes are very different from those proposed by the leading GOP Presidential contenders. \u00a0The Democratic tax plans would cut taxes for the middle class and the working poor. \u00a0At the same time, their plans would pay for themselves by increasing taxes on the super wealthy.<\/p>\n
Modern history indicates that if the country has a Democratic President, we have lower deficits, middle class tax cuts and a stronger economy. \u00a0In contrast, GOP Presidents blow up the deficit with tax cuts for the wealthy and increased military spending. \u00a0Increased deficits is a feature of GOP Presidents due to their support for borrow and spend fiscal policies.<\/p>\n
The choice in 2016 is clear. \u00a0We can have continued progress and prosperity with a Democratic President. \u00a0On the other hand, if the Republicans are returned to power, they will they blow up the deficit and destroy the economy – like they did in 2008. \u00a0We Democrats must work hard to elect a Democratic President. \u00a0The stakes couldn’t be much higher. \u00a0Let’s get it done!<\/p>","protected":false},"excerpt":{"rendered":"