September 26, 2011 in News, Region

Obama defends push to raise taxes on rich

Erica Werner Associated Press

Tags:Barack Obamajobs planlinkedintownhall

Paul Sakuma photo

President Obama gestures during a LinkedIn Town Hall Meeting at the Computer History Museum in Mountain View, Calif., Monday, Sept. 26, 2011, as he participates in “Putting America Back to Work: LinkedIn Presents a Town Hall with President Obama.”
(Full-size photo)

MOUNTAIN VIEW, Calif. — Inviting questions, President Barack Obama got one he was happy to answer.

“Would you please raise my taxes?” one man asked the president at a town hall here Monday, hosted by the social networking company LinkedIn.

The questioner described himself as unemployed by choice after succeeding at a search-engine startup company that did “quite well” — he was later identified as former Google executive Doug Edwards — and said he wants the nation to spend more on education, infrastructure and job training. That gave Obama a chance to promote his nearly $450 billion jobs plan that would be paid for by higher taxes opposed by Republicans but not, evidently, by some of Silicon Valley’s wealthiest.

“I appreciate the fact that you recognize that we’re in this thing together. We’re not our own,” Obama said. “Those of you who have been successful have always got to remember that.”

In a session dominated by economic concerns, the president plugged his jobs agenda in fielding questions on the employment picture, education, Medicare and Social Security. The president spoke midway through a three-state Western swing built largely around fundraising for himself and other Democrats.

Obama is in a deadlock with congressional Republicans, including House leaders, over raising taxes as part of a formula for helping a staggering economy. He has put forward a debt-reduction plan that would raise $1.5 trillion in new revenue, including about $800 billion over 10 years from repealing the Bush-era tax cuts for couples making more than $250,000.

Obama also said the financial crisis rippling through Europe is “scaring the world” and that steps taken by European nations to stem the eurozone debt problem “haven’t been as quick as they need to be.” His reference to the European debt crisis came on the heels of remarks by Treasury Secretary Timothy Geithner, who over the weekend urged governments to unite with the European Central Bank to help defuse the “most serious risk now confronting the world economy.”

In the short term, Obama wants Congress to cover the cost of his jobs plan by, among other changes, limiting the itemized deductions for charitable contributions and other deductions that can be taken by individuals making more than $200,000 a year and families making over $250,000.

Obama said he did not want to punish the rich, but rather to return income tax rates to the level of the 1990s that he said were fair.

“During that period, the rich got richer,” the president said. “The middle class expanded. People rose out of poverty.”

Edwards, former director of consumer marketing and brand management for Google, encouraged Obama to “stay strong” in his push for higher taxes on the wealthy.

Obama also made no apologies for Wall Street regulation and environmental rules and doesn’t buy the GOP charge they’re costing jobs.

The event was at the Computer History Museum, near LinkedIn’s Silicon Valley headquarters.

Referring to the countries of Europe, Obama said they have not fully dealt with banking crises, and now the struggles in Greece have compounded the problem. “So they are going through a financial crisis that is scaring the world and they’re trying to take responsible actions, but those actions haven’t been quite as quick as they need to be,” he said.

Obama is on the road selling both his jobs plan and his own re-election.

The town hall was the White House’s latest attempt to meld old-school campaigning with new media capabilities.

It comes midway through a three-day West Coast swing that includes seven fundraisers. Obama is racing to collect cash ahead of a Friday quarterly fundraising deadline that will provide a snapshot of the president’s strength against the gelling GOP field.

Obama has been using the events to try out his newly aggressive tone with supporters who have been disappointed with the president’s compromises with the GOP. The president is mixing frontal attacks on Republicans with words of encouragement intended to buck up the faithful as the 2012 campaign revs up.

49 comments on this story so far. Add yours!

BlondeSquawker on September 26 at 2:37 p.m.
Where’s my tax cut?
force_vector on September 26 at 2:53 p.m.
“In the short term, Obama wants Congress to cover the cost of his jobs plan by, among other changes, limiting the itemized deductions for charitable contributions…”
Why would anyone want to discourage charitable contributions? Wouldn’t trying to increase such contributions lessen the government burden and reduce the deficit? Makes no sense to me.
soccermomsusie on September 26 at 2:53 p.m.
Rumor is that he might raise them up close to where Reagan had them. YIKES!!!
It’s class warfare and now even nonheterosexuals are invited.
HEAR OUR VOICE!!!
soccermomsusie on September 26 at 3:00 p.m.
force_vector, This has me steamed enough that I might quit donating at the Urine Bank!
If you can’t get a big deduction, why give to a charity? It makes no sense!
HEAR OUR VOICE!!!
Shadedmuse on September 26 at 3:04 p.m.
People should give to Charrity and not expect a deduction in return this is just pure greed on peoples and this is whats wrong with this country greed
force_vector on September 26 at 3:07 p.m.
Cute, soccermom. The point of the deduction is to exclude charitable gifts of money from taxable income. Any deduction is only as “big” as the contribution. So, is that a carrot? Sure it is. Would people stop giving to charity without it? Some may, but most wouldn’t. Would your urine bank deposits dry up? Sounds like it.
However, it still doesn’t make sense to, in effect, discourage those who only give to charity to stay below an income-driven tax bracket. A charitable contribution, whether from the heart, or based on H&R Block advice, is a charitable contribution none-the-less, which undoubtedly will help someone in need.
Hunterman on September 26 at 3:19 p.m.
This is not raising taxes- just ending Bush’s ‘temporary’ tax cuts for the rich. Just like the teabaggers want to end Obama’s ‘temporary’ middle class tax cuts. Class warfare? Ya, someone takes advantage of me- it’s war!
oneanddone on September 26 at 4:41 p.m.
Honestly, few churches provide true assistance to the financially downtrodden. Maybe they can somehow provide emotional support but most focus on the ethereal. Food banks and the like are different and deserve a tax free status but not churches. If 90% of their incoming donations don’t go back out to those in need then they should be paying taxes like the rest of us. There also shouldn’t be deductions for any donations. The constitution implies a separation of church and state in all matters and a free ride for Joe’s church of the Apocalypse is unfair.
dataxman on September 26 at 4:46 p.m.
Let the Bush/Obama tax cuts expire and we can wait a year and see how we do.
And I mean all tax cuts - the marriage penalty will come back, no sales tax deduction, no AMT fix, no child tax credit - the code goes back to the way it was under Clinton…
Squid on September 26 at 5:17 p.m.
I really don’t think looting money out of the pockets of the only people who are spending money right now, will help the economy.
Watch what happens in the stock market when these taxes and tax breaks come to life. It’s already at record lows.
It’s going to be tax relief, but not enough to make a difference, for out of control Government spending, at the expense of the economy, and cost of living, for everyone.
bdr on September 26 at 5:20 p.m.
Possibly class warfare term could be updated to DO YOU REMEMBER WHEN Under Regan?
But I think its far more exciting to watch Faux news commentators speak about tax the rich under Obama, they need to breath in a paper bag every 5 minutes to keep from passing out. This mental disease is similar to FNDS - Fox News Derangement Syndrome. The sufferers of this disease are obsessed with Fox News and believe that Americans can only get their news from conservative sources. No matter how many times sufferers are reminded of ABC, NBC, CBS, CNN, MSNBC, NPR, PBS, Time, Newsweek, New York Times, Washington Post, L.A. Times, etc. they remain unresponsive, some in a terrifying near-catatonic stupor. It’s very tragic.
misjustice on September 26 at 5:23 p.m.
The reason that happens is because most of the talkin’ heads on Faux Noise would have THEIR taxes raised…and the mere thought of that makes them dizzy.
Upthewazzu on September 26 at 5:31 p.m.
Doug Edwards is an idiot. If he had half a brain, he’d realize that lower taxes would allow HIM to make decisions regarding his money. If he deems education to be important, then he should donate to educational organizations or start his own charter schools. Giving more money to the government is the only way to guarantee failure. What a tool.
dataxman on September 26 at 5:38 p.m.
MSDNC a outlet for informative, un-biased news? Who would that be? Al Sharpton, Rachael Maddow, Chris Matthews, Lawrence O’Donnell or Ed Schultz?
CNN? Would that be the millionaire son of Gloria Vanderbilt? Or multi-millionaire Piers Morgan?
The network news (morning & evening) anchors are pulling in millions a year.
So you were saying?
tobiasg on September 26 at 5:47 p.m.
MSNBC is left leaning but overall isn’t flat out lies. Besides, I thought all you baggers like to point out that nobody watches MSNBC.
Hunterman on September 26 at 5:49 p.m.
Again, $2 billion a week to ‘rebuild’ Afghanistan? Plus all the billions unaccounted for in 2 wars? Corporate welfare in the hundreds of billions? Rebuilding our own country a bad idea for the ‘fair and balanced’ lacky’s and their indoctrinated worshippers? Osama was right when he knew the knee-jerk reaction of Bush and Cheney would cripple us. What fools.
dataxman on September 26 at 5:56 p.m.
Hunterman - you are right, our reaction is bankrupting us - and both parties are to blame. Every dollar spent in the middle east from 2006 throught 2010 was authorized by the democrats. Had they wanted the war to wind down, it could have then - but they didn’t. They used the war spending bills to tack on billions of dollars for pet projects.
johnclarke on September 26 at 6:22 p.m.
Um Squid, how exactly are they spending money ? So what, the low taxes that have been low for over a decade is suddenly going to start working or something?
The stock market is fine if you look at the numbers, in fact it tends to be too high if you talk to people that actually know something about it. The wild swings are just that caused by reactionary folks and momentum trading. Are you sure about those “record lows”?
Whatever, this topic really is as simple as math. Plenty of facts, data and history exist to support the math, but that’s just too easy.
Shadedmuse on September 26 at 6:23 p.m.
MSNBC a propaganda tool of the Tea-baggers.
MrBloggy on September 26 at 6:31 p.m.
Obama wants to avoid the new trickle down economy of dead rich folks strung up in their mansions while their blood and body fluids trickle down onto their impeccably shined ceramic tile floors and the class warriors rampage thru their belongings and refrigerators just trying to stay alive in a post-econopocalyptic hellworld of dog eat dog and the rich.
force_vector on September 26 at 6:35 p.m.
MrBloggy - Being dramatic is by no means a good substitute for being logical. Get a grip, form a competent comment, then start typing…if you can.
misjustice on September 26 at 7:01 p.m.
I dunno, call me illogical, but I like dramatic. AND the word post-econopocalyptic, it’s catchy!
; )
Squid on September 26 at 7:09 p.m.
Well JC, my only three customers left, are all very wealthy. All the other customers who are, or were middle class, have quit spending money, altogether. Couldn’t help but notice a checking account statement on one customer’s dining room table, that said he had $368,000, in his personal checking account….. Not in his business account. Glad he’s spending some of that dough on me. Oddly enough, he says he is hurting for money these days. Bet you would love to seize that account for a new roundabout, or dog park, wouldn’t ya?
I am no expert on the stock market, by any means, but I hear it’s not as rosy as you are saying it is. A whole lot of news stories would disagree with you, about it’s current state. If you Google “Stock Market Record Low,” you will get way too many articles to read, written just in the last month.
If your math includes the trillions of tax dollars spent on executive bonuses, or home foreclosures, it’s not adding up.
misjustice on September 26 at 7:22 p.m.
^ snooping, or just happening to notice a bank statement, and then posting someone’s bank account balance on an open newspaper forum is bad form… better hope that dude doesn’t read the SR on-line or you could have just lost one of three remaining customers.
Where’s my tax cut?
SMARTGUY on September 26 at 7:23 p.m.
Squid you are making JC’s point for him, if the rich are the only ones with any money, who else can we tax. I agree with you this country needs to cut spending, but exactly where and how much can we cut. When your own budget is not balancing do you only cut spending, or do you also try to raise your income. A balanced program of reduced spending, and closing tax loopholes for the rich seems to make the most sense.
The_Seer on September 26 at 7:28 p.m.
squid: Riiiiiiiiiiiiiiggggggggt… we should be catering to people stupid enough to carry a third of a million dollar balance in a checking account making less than 1% interest annually?
Your claim that the stock market is at an all time low renders pretty much everything you’ve said or will say to garbage. What was the Dow Jones Industrial average the day Obama was inaugurated? What was it at the close of biz today? Try and reconcile those two sets of numbers with your statement about an “all time low” and get back to me..
Albert on September 26 at 7:33 p.m.
Let’s put all politics aside and solve the “problem”. Levy a flat 5% tax on ALL personal income - no exemptions - no deductions. The same holds true on corporations 10% - no exemptions - no deductions. We then tell the corrupt elected officials that inhabit all levels of government that “what you see is what you get”. If you can’t make it on this flat tax, then start by cutting your salaries and hideous benefits.
Arguing on “class warfare” accomplishes nothing, goes nowhere, and creates only division. Why put up with this combined “lip service” from these money grabbing perverts we call our elected representatives?
Oh by the way, never “re-elect” anyone. One term and they’re out.
misjustice on September 26 at 7:36 p.m.
Hey, Snoopy!
How could someone not “help but notice” that it is someone’s personal account not their business account? That doesn’t make sense. It would seem to me that you’d have to peruse the statement to discern that much info, not just casually glance at the total on your way past the table. Snoop!
johnclarke on September 26 at 7:36 p.m.
I appreciate your comments squid, because yes indeed the middle class is not spending money, and that will stop the economy cold. The rich have no problem staying rich, regardless of their tax rate being 36 % or 39%. When the middle class stops buying cars and flat screen tv’s, then we are in trouble.
Squid on September 26 at 7:45 p.m.
MisJ, when sitting at a dining room table discussing business, it’s hard not to notice. I doubt he would care if I mentioned his info, if his name is not included. We have been friends for about 30 years, or so. Actually, we discuss his finances often, and he likes to get my opinion on things.
Smartguy, we could delete the entire Dept of Education, and no one would know the difference. Can you tell me what their function is? No one seems to know. If you take a look at the Federal budget, there are so many programs that no one has ever heard of, and benefit no one, but those who work for that agency. All created by politician who want to suck up tax dollars for themselves. I have a hard time figuring out how taking anyone’s money could help the economy.
Seer, if I remember right, the day Obama was inaugurated, the stock market tanked, didn’t it? Dropped since the day he was elected. Traditionally does when Democrats are elected.
Pigrobin on September 26 at 8:05 p.m.
Squid: after we rid ourselves of the DOE, I would like to offer up the VA for extermination. It is the most corrupt and poorly run government organization I’ve ever known. I’m sure there are examples of worse ones but the VA is an absolute embarrassment.
DickAdams on September 26 at 8:05 p.m.
Obama, has an opportunity right now by not allowing before or after hours trading with his SEC lady that could make it happen. Of course his buddy Warren Buffett, might not let Obama do it. Money managers handling billions of dollars,after the market closes, peruse the results for the day, and may either buy, or sell huge blocks of stock. These transactions can, overnight, cause the reductions or increases, in the value of a company, very likely to swing drastically either way and the people who do their trading during regular trading hours, the next day may find out after the market opens their stock has lost one heck of lot of money. Seldom gain, because either the stock is so high its not worth while to buy more, or sell because the stock has plunged in price. At that point if they don`t panic and sell, they must hold the stock for the long term which is hard to determine the time frame. I`ve seen stock in companies that were hit, take 10 years or more to come back.
Squid on September 26 at 8:09 p.m.
JC, imagine if the rich stopped spending too. They have cut their spending to the bone already, but still are the only ones spending, as far as I can see. Lost three years of projects for wealthy and middle class customers, in one month. Had to lay off most of my guys on one of the most terrible days in my life. I remember the day like it was just hours ago. It was the day after President elect Obama announced that we were in a recession, and the day that Bernanke said we had been in a recession for a couple years, but no one knew.
It was December 1st, 2008.
Just saying we were in a recession, clamped everyone’s wallets shut, and sparked panic, for those who were spending money. Amazing how powerful just those words were, to cause so much effect. I was there, and it affected not only me, but several of my former employees, and their families.
johnclarke on September 26 at 8:26 p.m.
Yeah but the deal is - President Obama didn’t cause the problem - he’s just trying to fix it. Trying to blame the whole thing on the moment someone admits the stone cold truth does not make sense to me.
Squid on September 26 at 8:39 p.m.
Just saying that Obama caused the panic, which worsened the economy, exponentially. If it wasn’t announced, we may have gotten through it much faster and easier, with less casualties. It’s hard to bounce back when everyone quits spending, all on the same day.
Like I’ve said, I’m far from an expert on Federal politics. The little I know about it, is from the last four years, or so. I won’t defend Bush or Cheney, for anything, because I know little about them. Guess I was ignorant, and happy go lucky, till one day….. It was all gone, and I got riled up. Up until that day, I never worried about money, or having enough work.
It really doesn’t matter who caused it. This ain’t the NFL, and we aren’t on opposing teams. We are Americans. One big team. You can go back to Clinton and place all the blame on him, and the Democratic Congress, if you want. The big thing, is to fix it, in the fastest and best way for everyone. Don’t you agree?
johnclarke on September 26 at 9:25 p.m.
It does not matter who caused the problem, the blame lies with the guy that owns up and accepts the problem. Guess I don’t follow that.
I probably will not go back and blame Clinton since he actually balanced a budget and the economy rocked. However, I do wish the Republicans shared your one big team approach, and I certainly do agree it’s time to fix it. Unfortunately some folk are focused on simply defeating the President at any cost.
greenlibertarian on September 26 at 9:28 p.m.
Your utter ignorance is showing, squid.
Presidents don’t “announce” recessions.
“12/1/08 NEW YORK (CNNMoney.com) — The National Bureau of Economic Research said Monday that the U.S. has been in a recession since December 2007, making official what most Americans have already believed about the state of the economy.”
I’m sorry that your business tanked in 12/2008, but obviously you weren’t paying attention to what EVERYBODY knew was coming since Dec. 2007, that economy was in a major downturn.
You had a year to prepare and try and protect your employees jobs by hustling up new and different customers, and/or developing new skills and services to market in a down economy. You failed to do so until it was too late.
That’s on YOUR head, not Obama’s.
greenlibertarian on September 26 at 9:32 p.m.
Just as it took decades for the most recent and HUGE recession to occur, it will take decades, if EVER, to recover.
Global corporations don’t need to make the bulk of their money selling to the American Middle Class, which is shrinking.
Global corporations will make money where the middle class is growing quickly, China, India, parts of Africa, and parts of Europe (mostly the social democracies in the north of Europe.)
misjustice on September 26 at 9:39 p.m.
“It really doesn’t matter who caused it.”
Strange, that’s what most regressives and Tea O’Cons say when one of their own is responsible for tanking the economy, or starting immoral wars; and in the next breath they blame the guy that inherited the problems that their golden boys created. Very strange, indeed.
Green, squid can’t be ignorant; his rich client often asks his opinion on financial matters.
Squid on September 26 at 9:47 p.m.
Didn’t say it tanked….. Yet. It will soon though. Moving to Corpus Christi, TX. Bought into some crappy rentals, and will be a slum lord to 32 units. Gotta follow the economy, even if it’s a step backwards. I’ll still visit the SR blogs though, so don’t worry about that. :)
By the way, how do you prepare for a recession, when you have three years of work lined up, and it all goes away in one month? I had many customers. Even if you knew it was coming, who would think it would go away that fast, when it was all done deals? Should I have overbooked ten years in the future? I don’t think that’s possible or responsible for anyone. Thought it was stupid to schedule three years in advance. Too many variables to schedule even ten months in the future.
SMARTGUY on September 26 at 10:40 p.m.
Squid, you and I do not always agree, but I wish you good luck in Texas. I doubt you will be a slum lord, I am sure you will do the best you can for your renters, with what you have. This downturn in the economy has affected almost every American to some degree, and thousands of businesses have struggled through no fault of their owners. One thing to think about is we agreed on gas prices being unfair and not tied to oil prices. Politics are not as black and white as the two parties wish us to believe, compromise is still possible if we work together, without all the name calling, anger, and hatred so common on this site. Eveyone should remember we are all Americans and in this together, no matter how we vote. Have a good trip and be safe.
DickAdams on September 26 at 11:16 p.m.
Bill Clinton`s name is battered around in some comments, but it seems to me, NFTA was pushed into law by Clinton. Shorty after, as Ross Perot said, there was a large sucking noise as millions of jobs were created overseas. I suppose the liberals will continue to blame Bush. The libs no matter what, shall never admit they have slime bags the same as republicans. I can`t stand either party, and it will be a cold in h— if I join either. Isn`t that right Charlie Rangle and tax evader Timothy Getithner, or Dick Cheney?
Squid on September 26 at 11:20 p.m.
Thanks for the kind wishes, Smartguy. Won’t be heading out until the 10th of next month. I’m nervous, but it’s the best thing for me. Gonna live three blocks from the Gulf of Mexico, and will be able to fish for Sea Trout and Redfish, every morning, before work. Might make a couple tries for a Marlin or Tuna. I have enjoyed sparring with you and many others. Too early to say goodbye, just yet though.
greenlibertarian on September 27 at 12:44 a.m.
Looks like somebody’s getting a family (probably in-laws) placement. “Oh, you cratered your business in Spokane because you weren’t paying attention to the MARKET and the economy? That’s just sad, here, we’ll set you up as a slumlord.”
Gotta be better then aspiring to be a slumlord.
Squid on September 27 at 1:33 a.m.
I’m not married, and I had to buy them, on credit. Wish I had family that would give me rental units.
As far as the market…. Tell me, what should I have done different? Obviously you have never had a business. If you take on too much work, you can’t possibly make everyone happy, and you end up losing all of your customers. It’s better to make promises that you have some chance of keeping.
From my experience, everyone has a date of completion in every agreement. If you can’t promise to complete by that date, they find someone else that can. It’s foolish and irresponsible to take on too much work, unless you don’t have to worry about repeat business or referrals. No one would agree to a start date two years down the road, or completion date five years down the road, for anything. Have you? Everyone wants to be at the front of the line. You can usually hold them off for a couple months, but usually not years, on the start date.
Guess I could have hired a bunch of managers, and lost all quality control. Another sure way to fail, unless you have a proven manager that you trust on the payroll. I didn’t, and generally anyone who has those qualifications starts their own business.
The_Seer on September 27 at 8:51 a.m.
NAFTA originated, was negotiated by, and passed (all but signature by the Prez) during the first Bush administration.
http://en.wikipedia.org/wiki/North_American_Free_Trade_Agreement
“Following diplomatic negotiations dating back to 1986 among the three nations, the leaders met in San Antonio, Texas, on December 17, 1992, to sign NAFTA. U.S. President George H. W. Bush, Canadian Prime Minister Brian Mulroney and Mexican President Carlos Salinas, each responsible for spearheading and promoting the agreement, ceremonially signed it. The agreement then needed to be ratified by each nation’s legislative or parliamentary branch.”
Hopefully the clears the confusion in Dick Adam’s head, although that is a Herculean task that facts alone won’t cure.
Squid: You never answered the questions I posed about the stock market. I’ll supply the answers.
When Boy George left office The Dow opened at 8279.63 on 1/20/09.
It is currently above 11,000. How does that equate to an “all time low?”
Squid on September 27 at 2:05 p.m.
You’re putting me in a position, where I have to defend a president that I am not sure of, and don’t like to defend.
OK, I’ll give it a shot.
I’m just saying that that day, in particular is not a fair comparison. The days between the election of Obama, and the day Bush left office, were very bad days in the stock market. The stock market always takes a huge dive when any Democrat is elected president, and it also falls when it appears that a Democrat is winning during the campaign.
How about providing stats from six months before the election?
It was 12,638.32, at that time. The record high in the DJIA, was 14,164.53, which was during the Bush Admin.
I hate to defend Bush, but….
I did admit my ignorance in the stock market in my 7:39 pm, and 8:39 pm posts, which were long before several other posters called me ignorant. All I know is I keep reading stories that mention records being set in the stock market, and the phrase “since the Great Depression,” keeps coming up, in conjunction with the stock market. It’s all in one ear, and out the other for me.
I have made money in the stock market, and once cared about it, when I was able to triple my investments, before capital gains and broker fees. I lost all of those profits and the investments, on a Spokane company called Medinex, which was an Enron / Metropolitan type scam. I no longer care a thing about it. The game is too corrupt, with no consequences for cheating, fraud, and deception.
DickAdams on September 27 at 8:38 p.m.
I`m compelled to be redundant. I would not allow seer to teach my children. BTW, I read the url you posted. LOL, nuf said.
It is the second big laugh I`ve had reading the foregoing comments. Several twits have talked about stock market trading, blah blah blah, and telling us how the Wall Street traders are doing. Its so obvious, they don`t have a clue. I`m trying to be polite. Anybody see the flick “Dumb and Dumber”?
Squid on September 28 at 10:48 a.m.
At least this twit admitted my ignorance and cluelessness.