On Monday, President Obama publicly presented the details on his $447 billion jobs bill, insisting that individuals earning $200,000 or more and families at $250,000 or more give up many of their tax deductions and that "loopholes" for corporate tax payers and for private jet users close.
To some Americans, Mr. Obama's plan seem sound, at least on the surface. But many of the ideas expressed by the Obama administration, particularly where taxes are concerned, are not new. However, the president insisted that opposition to his jobs bill was a matter of politics alone.
“The only thing that’s stopping it is politics,” President Obama said, according to the Chicago Sun Times
But it is the politics that any given politician is expected to master. And President Obama is not immune from that expectation.
The Obama administration's jobs bill will likely not pass the scrutiny of an emboldened Republican Party that senses victory in the coming 2012 election.
“It would be fair to say this tax increase on job creators is the kind of proposal both parties have opposed in the past. We remain eager to work together on ways to support job growth, but this proposal doesn’t appear to have been offered in that bipartisan spirit,” Boehner spokesman Brendan Buck said, as reported by the Chicago Sun Times.
But the idea of "loopholes" did not escape the attention of Republican presidential candidate and former Speaker Newt Gingrich, who addressed the matter at the CNN / Tea Party GOP debate on Monday night.
After CNN's Wolf Blitzer asked Mr. Gingrich if it was fair that American corporations, particularly those in the energy sector, should benefit from tax loopholes, Gingrich found another critical plane on which to hit the Obama White House.
"I thought for a second you were going to refer to General Electric, which has paid no taxes," Gingrich said through a hail of applause. "I was astonished the other night to have the president there in the joint session with the head of GE sitting up there; the president talking about taking care of loopholes. And I thought to myself, doesn't he realize that every green tax credit is a loophole? That everything he wants, everything General Election is doing is a loophole?"
The jobs bill burden would not actually come from stemming corporate loopholes, but would instead come from tax increases on consumers. As the Washington Times notes
, under President Obama's jobs bill proposal "ending tax subsidies to oil companies would raise about $40 billion and tax adjustments on corporate jets would raise $3 billion. All told, the tax increases would total $467 billion."