President Obama Introduces New Tax Breaks for American Companies, but the Spending in the New Budget is Still Too High

In his weekly address to America, Continuing to Strengthen American Manufacturing, President Obama announced from the Boeing production plant in Everett, Washington about his new tax break plans for companies who keep production here in the United States.  This is a part of his new tax reforms which is geared to bring back more production to America.  In the address, the president is encouraging companies to ‘in-source’ their jobs back to America and said that he would be willing to give tax breaks to companies who return their manufacturing to America.  He stated that, “companies like Boeing are "in-sourcing" jobs from overseas.  [and] The tax code can be used to encourage more companies to do the same.”

President Obama further directed his address to those companies who outsource their work that:

"No company should get a tax break for outsourcing jobs. Instead, tax breaks should go to manufacturers who set up shop here at home.  Bigger tax breaks should go to high-tech manufacturers who create the jobs of the future.  And if you relocate your company to a struggling community, you should get help financing that new plant, that new equipment, or training for new workers.  It's time to stop rewarding businesses that ship jobs overseas, and start rewarding businesses that create jobs here in America.  And Congress should send me that kind of tax reform right away."

Though I agree with the presidents plans to bring manufacturing back to America, and the fact that President Obama is willing to introduce these tax break reforms to help business who bring business or ‘in-source’ production back to the United States is a good thing.  And will help in reinvigorating our economy.   I still believe that the president is still pushing for many programs in the FY 2013 budget that creates a heavier burden on Americans through the unnecessary spending and higher taxes in his new tax reform bills.

In a response address by the Republican Party, United States Representative Cathy Morris Rodgers, the congresswoman who is representing the town of Everett, Washington and the Boeing Plant commented that:

"On February 23, 2009, during a fiscal responsibility summit at the White House, President Obama made a promise to the American people. 'I'm pledging,' he said, 'to cut the deficit we inherited by half by the end of my first term in office.'

Well, in the budget he submitted this week to Congress, the president admitted he won't keep his promise. He won't even come close. Because of the president's failure to control spending, the government will run trillion-dollar deficits in each of his four years in office.

President Obama's broken promises have left our country broke. On his watch, the size of our debt has surpassed the size of our entire economy -- making it harder for small businesses to create jobs and pushing us closer to a fiscal crisis.

I'm afraid his budget is even worse than it looks. More than half of the proposed 'savings' in the president's budget for the next year -- about $2 trillion -- are already law. These savings come from the Budget Control Act -- the bill congressional Republicans insisted that the president sign last year in response to his demand for an increase in the nation's debt limit.

The president spent nearly six months last year resisting those spending reductions, until he finally listened to the people. Another almost $1 trillion in 'savings' comes from what we call the 'war gimmick' -- money that was never requested and will never be spent on wars in Iraq and Afghanistan. Those aren't real savings.

Do the math and you'll discover that the president's budget only achieves, at most, about a tenth of the savings it promises. This kind of accounting would sink any business or household."

Though I support the new tax breaks that the president has introduce in his new tax reforms, and with some reluctance I am temporarily supporting the president’s plan to increase the taxes so that the federal government may generate some revenue.  However, I am still firm on the idea that President cut back on our national spending for the upcoming budgets in the next few years, which is the only way we can get out of our massive public debt and try to work for a more balanced budget.

President Obama's Address: Continuing to Strengthen American Manufacturing

Republican Response Address