By Brai Odion-Esene
WASHINGTON (MNI) – President Barack Obama Tuesday night unveiled
policy proposals targeting problems in the U.S. economy for which his
administration has received the most criticism, such as the struggling
housing sector and the lack of a sustained solution to the nation’s jobs
crisis.
In his State of the Union address to Congress, Obama laid out what
he called “a blueprint for an economy that’s built to last — an economy
built on American manufacturing, American energy, skills for American
workers, and a renewal of American values.”
“With or without this Congress, I will keep taking actions that
help the economy grow,” the president warned.
To promote the cause of U.S. manufacturing, Obama promised tough
action against foreign competitors that seek to create an uneven playing
field.
He announced the creation of a Trade Enforcement Unit that will
investigate unfair trade practices in countries like China, and more
inspections to prevent counterfeit or unsafe goods from crossing U.S.
borders.
“I will not stand by when our competitors don’t play by the rules,”
he said.
On the issue of housing, Obama acknowledged that the government
cannot fix the problem on its own, but added that responsible homeowners
should not have to wait for the housing market to hit bottom to get some
relief.
“That’s why I’m sending this Congress a plan that gives every
responsible homeowner the chance to save about $3,000 a year on their
mortgage, by refinancing at historically low interest rates,” he said.
“A small fee on the largest financial institutions will ensure that
it won’t add to the deficit, and will give banks that were rescued by
taxpayers a chance to repay a deficit of trust,” Obama added.
As an additional boost to the housing market, Obama said in the
next few weeks he will sign an Executive Order clearing away the red
tape that slows down too many construction projects, noting that
“There’s never been a better time to build.”
Obama also took aim at those in the financial sector whose actions
led to the housing meltdown, U.S. Attorney General Eric Holder will
create a special unit of federal prosecutors and leading state attorneys
general to expand investigations into the abusive lending and packaging
of risky mortgages that led to the housing crisis.
“This new unit will hold accountable those who broke the law, speed
assistance to homeowners, and help turn the page on an era of
recklessness that hurt so many Americans,” he said.
Obama went on to underline his administration’s desire to clamp
down on bad actors in the financial sector. “I will not go back to the
days when Wall Street was allowed to play by its own set of rules,” he
said.
He proposed the establishment of a Financial Crimes Unit of highly
trained investigators to crack down on large-scale fraud and protect
investments, noting that some financial firms violate major anti-fraud
laws because there’s no real penalty for being a repeat offender.
“So pass legislation that makes the penalties for fraud count,”
Obama urged lawmakers.
Venturing into the fiercely partisan battle ground that is U.S.
fiscal policy, Obama said the most immediate priority is stopping a tax
hike on 160 million working Americans while the recovery is still
fragile. “So let’s agree right here, right now: No side issues. No
drama. Pass the payroll tax cut without delay,” he said.
In his other comments on tax reform, Obama proposed policies for
corporate and income taxes in keeping with his push for the wealthiest
of Americans to pay more, and for domestic companies to be rewarded for
creating jobs domestically.
“No American company should be able to avoid paying its fair share
of taxes by moving jobs and profits overseas,” he said. “If you’re a
business that wants to outsource jobs, you shouldn’t get a tax deduction
for doing it.”
Obama proposed that from now on, every multinational company should
have to pay a basic minimum tax, with the funds going towards lowering
taxes for firms that choose to stay and hire in the United States.
American manufacturers should get a bigger tax cut, and deductions
for high-tech manufacturers should be doubled. “Send me these tax
reforms, and I’ll sign them right away,” the president said.
On how much taxes individuals should pay, Obama said the U.S. “can
either settle for a country where a shrinking number of people do really
well, while a growing number of Americans barely get by. Or we can
restore an economy where everyone gets a fair shot, everyone does their
fair share, and everyone plays by the same set of rules.”
Obama voiced support for what is now commonly referred to as the
Buffett rule, named for billionaire investor Warren Buffett. “If you
make more than $1 million a year, you should not pay less than 30% in
taxes,” Obama said. Those making at least a million should also no
longer get special subsidies or deductions.
For those earning under $250,000 a year, their taxes should not go
up, he said.
On the energy front, growing fears of an escalation in the
confrontation between Iran and the West has revived concern about U.S.
energy security now and in the future.
Although he decided not to let the Keystone Pipeline project
proceed, Obama said he is directing his Administration to open more than
75% of the nation’s potential offshore oil and gas resources.
“This country needs an all-out, all-of-the-above strategy that
develops every available source of American energy — a strategy that’s
cleaner, cheaper, and full of new jobs,” he said.
Towards this end, Obama said the White House will take “every
possible action” to safely develop America’s abundant natural gas
resources.
He also refused to back down from his drive to expand renewable
energy usage in the U.S., touting the sector’s potential to create jobs
and boost the economy.
On the subject of Iran, Obama vowed that pressure on the embattled
nation will not relent so long as it clings to its nuclear ambitions.
“America is determined to prevent Iran from getting a nuclear
weapon, and I will take no options off the table to achieve that goal,”
he said.
He added, however, that “a peaceful resolution of this issue is
still possible, and far better, and if Iran changes course and meets its
obligations, it can rejoin the community of nations.”
Given that the debate in Congress last year was characterized by
fierce partisan battles and a lack of progess on many key issues, Obama
warned that none of these reforms can happen “unless we also lower the
temperature in this town.”
Extending an olive branch of sorts, Obama said both sides of the
aisle need to end the notion that the two parties must be locked in “a
perpetual campaign of mutual destruction.”
“While we may not be able to bridge our biggest philosophical
differences this year, we can make real progress,” the president urged
lawmakers.
He concluded by declaring his willingness to with anyone in
Congress, but vowed to fight obstruction with action.
“I will oppose any effort to return to the very same policies that
brought on this economic crisis in the first place,” Obama said. “No, we
will not go back to an economy weakened by outsourcing, bad debt, and
phony financial profits.”
** Market News International Washington Bureau: 202-371-2121 **
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