New White House “Grand Bargain” Proposal Is Neither Yet

The elusive "Grand Bargain" became less grand Tuesday, without any new certainty of ever becoming a bargain.

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Yuri Gripas / REUTERS

President Barack Obama waves as he walks on the South Lawn of the White House in Washington, before his departure to Chattanooga, Tennessee July 30, 2013.

The elusive “Grand Bargain” became less grand Tuesday, without any new certainty of ever becoming a bargain.

White House officials briefed reporters about President Barack Obama’s plans to announce a revived push for a “grand bargain” with House Republicans. But the new bargain they proposed — and aggressively promoted — was not the same as the old bargain.

In an address on the economy in Chattanooga, Tenn., Obama will offer to launch an effort to overhaul the federal corporate tax system if Republicans agree to increased infrastructure spending, White House aides said Tuesday morning. This is a far cry from the outlines of a grand bargain Obama and Speaker of the House John Boehner flirted with nearly two years ago, which included individual tax reform and changes to entitlement programs designed to reduce the deficit. “Our main goal here as not to announce new details as much to make clear the president is putting forward a new kind of grand bargain for middle class jobs,” said Gene Sperling, the director of the National Economic Council.

The Obama proposal is essentially a combination of a corporate tax proposal from last year and the administration’s latest iteration of plans for infrastructure and manufacturing stimulus. Sperling said the White House sought to combine the two proposals together because they would be unlikely to pass separately.

The Obama plan would lower the corporate tax rate to no higher than 28% by eliminating loopholes — including those which incentivize companies to move jobs overseas — with a top rate for manufacturers of 25%. Republicans have proposed a flat rate at 25%. The Obama plan would use one-time revenue to fund infrastructure programs and manufacturing innovation institutes, while the Republican plan would use that revenue to lower future rates.

But unlike the grand bargain of old which included entitlement cuts hated by Democrats, the new proffer doesn’t include any concession to Republicans, who are already lining up to oppose it. Boehner Spokesman Michael Steel rejected the offer outright. “The President has always supported corporate tax reform,” he said in a statement to reporters. “Republicans want to help families and small businesses, too. This proposal allows President Obama to support President Obama’s position on taxes and President Obama’s position on spending, while leaving small businesses and American families behind.”

A House Republican leadership aide added that the GOP has always demanded that corporate tax reform be coupled with reform to the individual system, while the White House maintains the split is a concession to Republicans since the reform for businesses won’t raise revenue in the long term.

Asked about the absence of a negotiating allowance to the GOP, a White House official rejected the notion that Republicans should be given anything. “The bargain isn’t supposed to be for the Republicans,” the official said. “It’s supposed to be a bargain for the middle class.”

Sperling and White House Communications Director Jennifer Palmieri told reporters that Obama’s original grand bargain proposal remains on the table, though both sides concede it has no future as long as Republicans maintain their opposition to any revenue-raising tax reform. That proposal would raise billions annually by eliminating loopholes from the individual tax code. “What the president is really saying today that just because we have not completed progress there and there has been holdup over the revenue on individual [tax cuts] does not mean we should put on pause all other efforts to create middle class jobs,” he said.

But even this pared down grand bargain is going nowhere. Coming a week into the president’s latest economic push, it is instead designed to put Republicans on the defensive with business leaders and the American people going into negotiations on the debt limit and budget this fall.

The White House fact sheet on their proposal is below:

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25 comments
terryclifton1
terryclifton1

More spending, more taxing..It's worked, like never, so let's keep doing it, right?

terryclifton1
terryclifton1

Stopping a runaway truck from going over the cliff isn't obstructionism, it's common sense. What is Obama's grand compromise offered up to the Congress? Lowering the corporate tax rate, back to its original 28% from 35%, which was in a word, stupid for being raised in the first place, but that didn't stop him, now did it? However, in his wonderful brilliance, he raises the tax rate on small business to 40%. That's right, he gives a pass to the evil 1%,  those same corporations that sit on his economic panels, who are the largest tax schemers known to mankind,  whose CEO's head up his embassies, and those corporations which donated millions of dollars to his election campaigns. He rewards the richest and most corrupt corporations in our country, and he is determined to put every small business out of business with his tax rate hikes and Obamacare mandates. That makes perfect sense if you're a liberal..As long as it comes from the mouth of Obama, it's gospel.


AnotherOne
AnotherOne

Africa for Africans, Asia for Asians, White countries for EVERYONE!!! It is said there is a racism problem. It is said that this racism problem will be solved when the third world pours into ALL White countries and ONLY into White countries. And that the Whites have to interbreed with all the Non-whites. According to the United Nations Convention on the Prevention and Punishment of Genocide, this is genocide. Stop White Genocide. Anti-racist is a codeword for Anti-white.



Read more: http://www.foxnews.com/politics/2013/07/23/team-obama-steps-up-racial-standards-for-neighborhoods/#comments#ixzz2aTTi4wlB

http://www.youtube.com/watch?v=lKDeyuM0-Og

jmac
jmac

Infrastructure spending and manufacturing stimulus with added revenue from corporations that walked away from our near fall into a great depression with bundles of money.

Not going to happen.  The only way Republicans think they can take seat is cry 'Small Businesses' and hope like heck the economy tanks.   We all know it.  Apparently, we just can't say it or write it.  

mantisdragon91
mantisdragon91

Does it not take two to bargain? How does one do that with the GOP that seems more and more fundamentally insane each day?

tom.litton
tom.litton

I can see a system that has 0% corporate tax rate, and makes up the lost income by increasing taxes on that money when it becomes someone's income (and possibly when it leaves the US borders).

That, i hope, would encourage corporations to expand their business and create more jobs rather than give their CEO a raise.

Norm54
Norm54

Seems we always have to bribe the already wealthy with some kind of government welfare in order to get help for the common working man who pays all the taxes and never benefits from them.

dawildauer
dawildauer

We don't need anything from a 12% approval congress and a 45% approval president (with an asterisk on the validity of his second term).  Just leave us alone and stop meddling.

united_we_stand
united_we_stand

Get rid of individual income taxes before lowering corporate taxes. Like Obamacare this is just more corporatism. Corporations already pay less, are allowed to write off expenses individuals cannot, and have plenty of loopholes. I'm all for lowering corporate taxes but not while individuals are enslaved to the government with real tax rates well over 50%. The corporations drag us into wars and demand the people pay while they write off everything, pay nothing, and get all the benefits. The corporate lobbyists have the politicians pass so many laws and regulations that only they can navigate the mess. Even politicians admit its all a mess and they don't even understand (let alone read) the corporate laws like this which they vote for

destor23
destor23

Something off here.  "But unlike the grand bargain of old which included entitlement cuts hated by Democrats, the new proffer doesn’t include any concession to Republicans..."

Zeke -- if the Republicans wants entitlement cuts in exchange for supporting anything in Obama's proposal, shouldn't the Republicans, you know, say that?  It's certainly not up to Obama to make their proposals for them.

grape_crush
grape_crush

> “The bargain isn’t supposed to be for the Republicans,” the official said. “It’s supposed to be a bargain for the middle class.”

More feisty-ness like this, please.

> Coming a week into the president’s latest economic push, it is instead designed to put Republicans on the defensive with business leaders and the American people going into negotiations on the debt limit and budget this fall.

Can it not fulfill both purposes?

shepherdwong
shepherdwong

"Boehner Spokesman Michael Steel rejected the offer outright. “The President has always supported corporate tax reform,” he said in a statement to reporters. “Republicans want to help families and small businesses, too. This proposal allows President Obama to support President Obama’s position on taxes and President Obama’s position on spending, while leaving small businesses and American families behind.”

Liar. Kabuki or not, at least the President is being forthright in what he's willing to do and who it would help. At this point, Republicans are simply enemies of the Republic and cannot be trusted in any fashion.

SmoothEdward1
SmoothEdward1

I doubt the Republicans will accept it, and that might be a good thing. They could be swept out office in 2014, and forced to work at home on their computers making $1177.00 in just two hours.

ZacPetit
ZacPetit

More obstruction from the GOP, lining up to oppose the idea rather than adding to it or offering an alternative.

shepherdwong
shepherdwong

@terryclifton1 "That makes perfect sense if you're a liberal..As long as it comes from the mouth of Obama, it's gospel."

As opposed to Rush Limbaugh of FOX News. That makes perfect sense if you're a brainwashed moron.

tom.litton
tom.litton

@united_we_stand If we eliminate income tax, how would we make up for the lost revenue?  If we tax corporations too much they can easily pick up and move out of the country now days.  

Corporations are not evil.  Often the people that run corporations are.  Often they do what they are suppose to:  maximize profits for their share holders.  It's up to us, working through the government, to make sure the rules don't allow them to screw over the country, and that they follow the rules.  Lately we have been failing at that.

united_we_stand
united_we_stand

@ZacPetit Historically taxes are taking money from the common people to redistribute to the elites. This proposal is more of the same. It openly gives the ultra rich (who have their assets in corporations) tax breaks while putting the tax burden on the common people, leaving income tax unchanged and continuing to make them bear the brunt of government inflation.

terryclifton1
terryclifton1

@shepherdwong @terryclifton1  

Well if you took a minute to read anything but Socialist Daily, you would have already known that facts. You're just another troll who isn't up on current events, and you never let the facts stand in your way of parroting the party line. You're a good little boy, now go on and play, and let the big people talk..

PerryWhite1
PerryWhite1

@Norm54 @united_we_stand @destor23 And I see no reason to cater to GOP demands when all of them are fundamentally bad ideas. We've been following the Republican economic nostrums for more than 30 years, and they have proven themselves over and over again to suck. 

Obama's new "grand bargain" is meant stop allowing Republicans to frame the debate, beginning with "government is bad," continuing with punishing austerity plans and ending with "trickle-down" economics. All of which are bad ideas. He's saying, "let's talk some other stuff now" and I'm sure glad of that.