WTF Has Obama Done? - Issue No. 005 - Taxes

One of the most prominent issues of the current political climate are TAXES!  President Obama's Achievements on this subject are extensive, so I will be listing three today.  

As with my previous issues, I will come back to each category at a later time.  

When I read, and research all that our president has accomplished in the last 3 years, it is mind-boggling to me how much the Tea Party and Republican Party has lied, and continues to lie the American people.  I've even fallen into their traps in the past, but not anymore!.  I'm here to help fix that.

Today we will look at the president's broad policy and one targeted action (WTF-13).

WTF-11

Adopted Economic Substance tax doctrine.

A policy that states that tax changes must have significant economic justification, as a federal law.

It's called the "economic substance doctrine." It's a law that set a rule to prevent tax dodgers.  What it means is that people aren't allowed to find creative ways to avoid paying their taxes.

The measure is expected to generate a relatively small amount of new tax revenue, about $4.5 billion over 10 years, according to the the Congressional Joint Committee on Taxation. [Reference]

WTF-12

Cracked down on tax cheats (Exec Order).

On January 20, 2010, President Barack Obama ordered a new crackdown on federal contractors who don't pay their taxes. 

Obama signed an executive order telling federal agency chiefs to take steps to bar those companies from receiving new government contracts. The order also directed the IRS to review contractor filings to make sure companies are not lying about the taxes they've paid.  Obama said the practice is inefficient, wasteful and, above all, wrong.

"It is simply wrong for companies to take taxpayer dollars and not be taxpayers themselves," Obama said. "We need to insist on the same sense of responsibility in Washington that so many of you strive to uphold in your own lives, in your own families and in your own businesses." [Reference]

WTF-13

Temporarily suspended taxes on unemployment benefits.

When the economy deteriorated in 2008, Congress extended benefits, giving more money and setting longer time frames for the states with the highest unemployment numbers. The economic recovery bill that Obama signed extended those time periods again. Depending on circumstances, most people receiving benefits should get an extension, with the hardest hit states winning extended benefits through Dec. 31, 2009.

Unemployment benefits are normally taxed as regular income, but the bill exempted the first $2,400 of unemployment from 2009 income taxes.

"Today, I signed the unemployment insurance extension to restore desperately needed assistance to two and a half million Americans who lost their jobs in the recession.  After a partisan minority used procedural tactics to block the authorization of this assistance three separate times over the past weeks, Americans who are fighting to find a good job and support their families will finally get the support they need to get back on their feet during these tough economic times.  Now it’s time for Congress to act on more proposals that support our economic recovery, including passing critical aid to our states and support to small businesses.  Small businesses are the engine of job growth, and measures to cut their taxes and make lending available should not be held hostage to partisan tactics like those that unconscionably held up unemployment insurance." - President Obama on July 21, 2010 after the Senate passed an extension of unemployment insurance. [Reference-1, Reference-2]

Please make sure to read Issue No. 006 tomorrow as I continue with WTF-14
Everyday on BLADE 7184