Business leaders have said for months that the President has created an “increasingly hostile environment for investment and job creation.” In the midst of the White House announcing a permanent R&D tax credit and an expanded, extended bonus depreciation tax credit for businesses, which amount to hundreds of billions of dollars in free money for them (and which they’re likely to game for billions more), this sounds completely absurd. As Ezra Klein acknowledged yesterday, this White House has gone out of its way to design its policies to the benefit of corporate America as much as humanly possible:
The health-care reform bill bends over backward to preserve each and every private industry currently overcharging us for our care. The Obama campaign publicly supported the bank bailout and then repelled the populist measures to really hammer banker pay when they got into office. The financial reform bill didn’t break up the banks, set leverage requirements in statute or do any of a number of other things that would’ve really hurt the financial industry. The auto bailout was designed to preserve the existence of America’s auto industry, and even the Economist has admitted that the Obama administration did everything in its power to “restore both firms to health and then get out as quickly as possible.” The various stimulus measures have been designed to directly support businesses or indirectly support the people who those businesses rely on.
The point isn’t that all of these policies were good. Some of them weren’t. The point is that the constant accusation that this White House is somehow anti-business, or deaf to the corporate community’s concerns, is a fiction of the Wall Street Journal editorial page. There’s a good argument to be made, I think, that this White House is too focused on business, but it’s annoying to have to frame it as a boldly counterintuitive point, rather than as an obvious conclusion based on their raft of policy initiatives meant to save, help or otherwise improve the position of corporate America.
And so what reward did the White House get for their pro-business stands, while the corporations returned profits to pre-recession levels? The health insurance industry will raise their rates this year and blame it on the Affordable Care Act. The financial industry has shifted their political donations away from Democrats. And after offering hundreds of billions in tax cuts, the same businesses that supported these measures want… personal tax cuts:
The business community likes President Obama’s proposal to accelerate tax write-offs for companies buying equipment and other big-ticket items. But it is clamoring for more — extension of all of the soon-expiring Bush-era tax cuts.
“He’s not really addressing the big issues,” Brad Benson, president of Squires-Belt Material Co. in San Diego, said of Obama. Benson does welcome the president’s proposal on depreciation costs, which would save businesses $200 billion over two years.
“I think it’s maybe a small step in the right direction, but as a manufacturer, I’m more concerned with the tax-cut issue,” said Benson, whose company supplies drywall and other building supplies for commercial and residential construction.
When faced with the choice between Republican and Republican-lite, voters usually take the real thing. It’s the same with big business; they’ll go with the traditional party of big business, where they get to write the legislation completely, over the party that gives them a peek at the legislation and solicits their input and tailors it to their whims. It’s the rich who fight the class war, motivated by greed and fealty to their partners in the upper strata. Trying to win a race for who can satiate that greed fastest seems like a losing battle.



46 Comments


Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About FDL News Desk
Sure they do. After all they have proven that trickle down and supply side economics is the best. At least for those business and individuals with the best tax entitlements money can buy. Just imagine where we would be without all of the jobs they have created for the country. That 1 million job count under Bush really helped us out a lot.
Maybe my memory is not serving me correctly, but it sure does seem like Ezra Klein is trying to have his cake and eat it too. He sold or at least defended that health care bill like crazy, and I don’t remember hearing him talk about how “bends over backward to preserve each and every private industry currently overcharging us for our care” when many of us were making that very claim.
What I found interesting about all the new breaks for businesses is how the administration chose to sell it. All kinds of fanfare on Labor Day at union events by our President talking about jobs and his new investments in infrastructure. But not a word (or at least none that I heard) about even *more* tax breaks for business, or discussion about extending all or part of the Bush tax cuts.
So it was all populism in the news for two days, widespread and heavily reported. Meanwhile, relatively quietly, the business tax breaks news came out the next day, and the continued discussions about the Bush tax breaks.
I just find it to be very dishonest. And what’s really going on is that they are flicking some crumbs from the crust to the people as they are handing the whole pie to the big businesses.
God forbid that the Chamber of Commerce starts complaining and making the absurd claim that the administration is hostile toward business, like they did about a month ago. The charge is absurd, and should have been treated as such. But no, the administration jumped up and sent Rahm to soothe the relationship, STAT.
Meanwhile, the people continue to suffer, and are lied to.
Now that I know Obama better, my guess is he’ll give them everything they want.
In other words Obama got Punked. He has been Dissed Publicly and lacks the Stones to do anything about it
Of course, business wants all the tax cuts they can get. This may just be a negotiating ploy. The dems in congress may not take this bait. They have something the repugs and business want, tax cuts of all kinds.It may be possible to give business what it wants and take the Bush tax cuts away from the wealthy. We will see how this plays out. I’m still betting though that the tax cuts get extended for everyone. The problem is the deficit then just gets worse. But that may be the best thing in the midst of a depression.
A hostile climate for business? Well yes Obama is the bad parent who feeds his kids junk food because they complain the kids get the tax cut junk food sugar rush now but then they crash later on. Long term the junk food diet kills them
What corporations need is healthy consumer demand not tax cuts.
It is as always all about the looting.
Without a return in consumer demand what are good are tax cuts if you have no profit? Consumer demand will return how by magic is there any signs it is returning? Lots of fallen empires thought they could keep spending on stupid wars and that consumer demand would return.
It can’t Happen here has always been there mantra.
Loot to much and the Parasite upper class kills the host body they feed off of.
Maybe Ezra Klein is starting to get it.
Hi, Joanne… it’s great to see you here. I hope you return frequently.
What job creation? I haven’t seen any news about any industries creating any jobs.
Bingo!
“After offering hundreds of billions in tax cuts, the same businesses that supported these measures want… personal tax cuts”
Their hands are certainly big. And they keep holding them out. All the while, bitching about “welfare queens” and the unemployed. They truly have no shame.
If you really want the business community and the repugs and blue dogs at the same time, offer them a huge new defense spending bill say for a new carrier and a new jet. They may trip all over themselves to get into that. Plus the generals will be salivating for the upcoming war in Iran. (can you use a carrier in Iran, General? really?)
OT:
I’m sorry if I missed this, but have you seen the “chatter” that if Rahm leaves (and runs for Mayor of Chicago! Hahahah)…Obama may replace his COS with a Republican? Better a Republican than a DFH, amirite?
http://voices.washingtonpost.com/plum-line/2010/09/the_coming_war_among_dems.html
Is there a more hilarious phrase than “good faith bipartisan gesture”? It just keeps getting dumber and dumber.
Of course using the logic of the new admin, Bush could claim to have “saved” 200 million jobs. LOL.
I suppose it’s possible to rationalize anything. Thanks, Rahm!
One more OT:
Josh Marshall can’t tell shit from apple butter:
What.A.Hack.
Would love to get his reasoning on what the Catfood Commission was for, why Obama created and staffed it the way he did, and what he thinks the outcome of that hellmess is going to be.
I think the entire world has lost their minds, except for the good folks here. You people keep me sane.
And “the big legislation has already been pushed through” – which legislation? DADT is gone? Everyone has Medicare? All the troops are at home? Yep, we’re all done and it’s perfect. s/
Not really. At this stage, the uber-wealthy can rip off serfs globally. They don’t really give a sh*t about USA serfs bc we’re not all that necessary anymore. Make no mistake about that.
In fairness, Obama would just be replacing one Republican COS with another, so it’d be kind of a wash.
The Labor Day speechifying was only ever Kabuki show.
This is what the real deal is. I fully expect that Bush tax cuts for the super wealthy to be become etched in cement and fully treated as if that’s what was on the tablet Moses brought down from the burning bush. Plus ever more tax cuts for businesses bc they need to be “encouraged” to “create jobs ‘n stuff.” nudge nudge wink wink
i would think to date the leverage they are using goes something like this “do what we want or we will crash your markets beyond recognition” Flash crash just a little reminder, criminal syndicate style, oh yea
And then some.
Maybe with a cherry on top or BONUS tax cuts for good measure.
Having a R COS would be close to the ultimate bi-partisan ideal. Maybe folks could suggest that Obama alternate party affiliation on a bi-monthly basis as well in an additional show of good faith.
As for the subject and given past performance, I fully expect a compromise on the Bush tax cuts. Keep the over $250,000 due to united opposition and cut those below that level because of a lack of opposition. After all, what congress critter wants to raise his or her taxes and how many are under the threshold?
Healthcare Reform and Financial Reform passed! Historic landmark legislation! Now I can get sick like I always wanted, and get unlimited free toasters from banks.
Obama would eat glass (metaphorically speaking, Mod!) to get Republicans to like him.
Here’s where the movie Key Largo tells us what
big “biz” wants. When asked what the chief gangster
Rocco (Edward G.Robinson) wants,Humphrey Bogart answers
“More”. Precisely.There is NO LIMIT.
Just kill me now.
The flash crashes (only one got a lot of airplay) were created mostly by no liquidity behind the HFT trades on the up or the downside. The elite that run their HFT shops comprise about 70% of the market trades and have almost certainly kept the price of stocks elevated. The SEC refers to HFT trades as being required to maintain liquidity. Therefore the flash crash in question will be be determined, once the SEC finally passes judgement next month, to have been divinely inspired and beyond the ken of men to judge. Either that or gophers. The market moves in mysterious ways – highly synchronously on very low volume of late – and if the software were shut off one can assume that a lot of mystery would disappear fairly quickly.
Nice market you have there. It would be shame if something were to happen to it.
Absolutely right.
On a different note we fought and won the biggest war on the planet ever fought on a global scale. Then we educated all returning soldiers with a college education and created a huge middle class. Then we had a huge economic expansion ever seen in the history of USA. All undeniable facts achieved under heavy odds stacked against it. How was that economic expansion possible one might ask with all those astronomical expenses: Progressives Taxes with top tier paying 90%. under President Eisenhower.
Lets assume for argument sake no taxes are paid by businesses or for that matter anybody:
Do we think foreign countries will provide army to protect our business establishments and civilians.
Do we think foreign countries will resolve disputes between business establishments and people by giving free legal advice and enforcing rule of law.
Do we think foreign countries will create roads so that our economic engine will work flawlessly.
Do we think foreign countries will provide free education to our children for 10 years so that they would not become brutes, torment our law enforcement, put to waste and destroy their invaluable innate potential.
I do not think so and in my opinion no logical person thinks so.
In short, Faster we get back to President Eisenhower Progressive Tax Rates better our country will become in a decade.
You completely missed Marshall’s point.
In case anyone wants to know, Jane is upstairs.
I posted this elsewhere. They are still tinkering with the recipe for the shit sandwich they are about to serve us, but I guarantee you there will be tax cuts for the rich in there, for the simple reason that they expect some of that money to find its way into their campaign fund for 2012. Tactically, Obamarahma must know that good policies for the bottom 98% of the population (which doesn’t require fundraising, just doing one’s job) could have a stronger effect on 2012 than TV time bought with contributions from the top 2%, but that isn’t an option for them. I also have seen speculation that the same 2% are blackmailing Obamarahma into extending the tax cuts by holding back on hiring until they are extended, and we have seen how much courage Capt. Sanstesticles has in the face of such threats, i.e. expect the pretty words to be followed by a cave-in like what happened in Chile last month.
Not going to happen.
It would be political suicide for any Republican to accept.
I can see them stringing Obama along and then leave him standing at the alter though.
Those greedy unemployed and poor people taking all those billions away from deserving billionaires, they should be ashamed. ;)
Why mess around with trying to encourage corporations to provide jobs. They won’t do it. Outsourcing is a growth industry.
What should be promoted is entrepreneurship, helping people help themselves. This includes: education, advising, financial and technical support, and other ways to help the formation of small business which is where most of the job formation has to take place. How does one navigate through the plethora of licensing, zoning and health regs, to name a few. Micro-financing is needed. Priority on Green. Main Street not Wall Street.
There’s only one thing left to do. You folks will have to start lobbying for a return to the Clinton rates for everybody. Not doing so adds $202 billion to the deficit each year.
{snark on} Yeah, let’s have another round of “control fraud” on top of that well-timed fear mongering shall we? {snark off}
I think this is a pretty hot piece, The Keiser Report: Episode 68. I loved the way Keiser captured the Chinese billionaire saying “Bubble? I see no steenkin’ bubble!” The program features Mr. William K. Black explaining the dynamics of control fraud quite clearly and how it dovetails with the strategy to not clear the “Vortex of Debt”/”Black Hole of Debt.”
I am so fucking tired of this supply side horseshit I could just scream. And everytime a weak-kneed Democrat “compromises” on this issue, he/she just reinforces the bogus crap that tax cuts create jobs. When are enough voting Americans gonna wake up and smell reality? (rhetorical question)
Here’s some reality. If there’s a company producing and selling widgets and current demand for their widgets averages 450 units per month while their current workforce can produce 500 per month, then the CEO of that compant is not gonna suddenly hire more workers because of a tax break. Can you just imagine one that did and then when the demand for widgets remained the same while his/her costs went up the explanation to the shareholders? “Well gee, whenever we get a tax cut we’re supposed to create jobs. I know this cause Rush told me so.”
Here’s some more reality. The CEO of that company ai’nt gonna hire more workers/production capability as long as his current workforce can meet demand no matter how many tax cuts you give him/her. And if demand DOES begin to consistently exceed his/her current capabilities, he/she WILL add workers/production capability without any tax cuts. They’ll do it even if they have to borrow to do it.
And one last dose of reality. The rightwingers are currently claiming bussiness is sitting on record amounts of cash due to the “uncertainty” of future tax rates and this administration. BULLSHIT. Businesses ARE currently sitting on record amounts of cash. But it has nothing to do with uncertainty over future tax rates. It’s because as in the example above, no matter how much money they have they ain’t gonna spend more until demand for their product/service forces them too. Oh, and don’t you just love how the media happily repeats the right wing mantra that businesses are sitting on so much cash due to uncertainty AND tax cuts leads to job creation at the same time. Right, they have more cash then they need now and ain’t hiring, but more tax cuts giving them even more money will do the trick.
EmEffin Assholes.
Couldn’t agree more. Thirty years of slashing taxes got us where we are today. Even Republicans back on the day called supplyside Reaganomics voodoo economics.
Now we’re caught with the American middle and lower class on the ropes. No amount of tax cuts can make them spend money they don’t have.
I’ll hold my nose and vote for Democrats in November.If the Republican’s win the Senate and Congress it will give Americans another hit on Americans jobs. Remember the marrage between Bill Clinton and Newt Gingrich.There baby NAFTA.Now ask yourself where the jobs.With WTO and NAFTA slave labor is alive in the World.We know Obama present himself quite diferent than the action he takes.The Public opption was not good enough for working Americans so the democrats passed a bill for Insurance Co.. Just think what Obama can do to America with the cover of a Republican Senate and Congress.Hell he can’t get anything good for the American worker with Democrats in charge.Can’t tell the differance between D’s and R’s I’ll vote for the D’s this time around hopeing thay keep controle of the
Congress and Senate without the cover of the Republican to blame.
I would like to see tax breaks given to employers that payed liveable wages with retirement funds and health insurance.For the business that will not pay liveable wages + health and retirement should be paying fines and fees in excess of what it will take should any of there employees have the bad luck of getting sick or go on welfair. Really the employer that pays less than liveable wages that the ones that receive wellfair when someone gets sick that has worked for them.
I was at work and couldn’t respond to this but I agree 100%. Ezra Klein fought hard against everything that folks on this blog cared about. He is the sleaziest of the Obama ass kissers. NOTHING he writes is worth the paper it is written on.
We will see a lot of revisionism from the likes of Klein, Marshall, Drum, and Yglesias as this president goes down in flames. They’ll all be quick to point out what he got wrong — all the stuff that they defended.
Klein now accusing Obama of bending “over backward to preserve each and every private industry currently overcharging us for our care” is absolutely fucking outrageous.
Agreed. Obama is either too weak as a leader to even comprehend, or he’s a closet Republican. Either way he’s willingly being played as a big time loser.
Absolutely true.
Spot on.
That would be tax uncertainty and regime uncertainty. And they are quite real. FinReg alone has some 243 rulings by 11 new bodies, and no one knows what’s going to happen with it. Any one of those rulings could have the power to kill a business or worse. It will take years to know what was in those bills.
Investing in new anything is shelved for the near term. But don’t take my word for it… how many here are going to buy new furniture or a new car? Or instead, save as much as possible against an increasingly uncertain future?
Well I’m sorry but I disagree on the uncertainty claims. There is always some amount of uncertainty. We have elections every two years so in theory massive changes could occur every two years.
No, I’d bet my last dollar that businesses that see increases in demand for their product aren’t gonna go “Well, we better not spend more now on production due to uncertainty.” No, IMO they’ll spend every dollar they have and would even go in debt if demand picked up and provided opportunity for more sales. I know I would, assuming the sales are profitable, of course.
IMO the reason big business has accumulated record amounts of cash is because they’re profitable but not expanding due to flat demand, not due to uncertainty. But obviously YMMV.