Obama: Taxes should be increased to reduce debt
In order to pay-off the 15 trillion dollar federal debt and cut down the government’s one trillion dollar budget deficit, taxes should be increased to generate more revenue. The president was expressing his views to a group of business executives.
While speaking to members of the Business Roundtable, President Obama insisted that although his administration is working on a plan to cut spending, strategies to increase revenue should also be put in place.
Taxes will have a big impact on the outcome of 2012 elections.
All the potential Republican flag bearers Romney, Gingrich, Santorum and Ron Paul oppose tax increases. This means that the president will face a tough battle when campaigning for reelection.
There have been budget crises between the White House and Congressional Republicans who oppose tax hikes.
Whatever the outcome of the elections, there will be tax changes in December.
Payroll tax spearheaded by the Obama administration will come to an end while Bush tax cuts will also expire before the year ends.
President Obama wants to entrench the Buffet rule into the country’s tax code. If this happens, people making more than a million dollars annually will be forced to pay a flat rate of 30 percent in taxes. The president also plans to phase out Bush tax cuts for taxpayers with an annual income of more than 200,000 dollars or couples who make a total of 250,000 dollars annually.
The president claims that he only seeks a balanced approach towards tax collection:
President Obama is of the opinion that a simple adjustment can be made to the tax code to help in stabilizing the government.
- A Recent Poll Shows Popularity Of The Millionare Tax (2011taxes.org)
- Planning For 2012 Tax Changes (2012taxes.org)