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Barack Obama's Tax Cut for Middle Class and Senior Citizens

From the campaign newsroom:

Obama to Fight for Tax Fairness for Middle Class
Algona, IA | December 16, 2007

Algona, IA - At a town hall meeting at Algona High School, U.S. Senator Barack Obama today discussed his bold and innovative plan to cut taxes for working Americans. By standing up to the special interests and fighting for working Americans' interests, Senator Obama will cut taxes for those who need it most: middle-class families and seniors. Obama's plan will also restore fairness to the tax code.

"I'm in this race to take those tax breaks away from companies that are moving jobs overseas and put them in the pockets of hard working Americans who deserve it, and I'm the only candidate in this race to introduce a middle-class tax cut that will give 95% of working Americans a break," Senator Obama said. "We don't need any more tax breaks for the wealthiest corporations who didn't need them and didn't ask for them - it's time to give a break to working folks so that we put the American Dream within the reach of every American once more. That's why I'm running for President."

Obama's plan would provide relief and support for our middle class and honor seniors, such Mary Paige of Cedar Rapids, by eliminating federal income taxes for those making less than $50,000 a year. Ms. Paige, participated in a roundtable discussion with Senator Obama on Friday at Kirkwood Community College in Cedar Rapids. Under Obama's plan, Ms. Paige would no longer pay federal income taxes.

Senator Obama's tax-fairness plan also includes a new "Making Work Pay" tax credit of up to $1,000 for America's working families, creates a new universal mortgage interest credit that will benefit low and middle-income homeowners, simplifies tax filings so millions of Americans can do their taxes in less than 5 minutes, eliminates special interest loopholes and tax breaks and cracks down on international tax havens.

Obama would pay for his tax reform plan by closing corporate loopholes, cracking down on international tax havens, closing the carried interest loophole, and increasing the dividends and capital gains rate for the top bracket.

The plan can be viewed in full <a href="http://my.barackobama.com/page/-/HQpress/Fact%20Sheet%20Tax%20Fairness%20Speech%20091707%20FINAL%20IH.pdf">HERE.</a>
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Obama Calls for More Transparency on Wall Street

From New York Daily News:

Barack Obama calls for more open, transparent Wall St.

Barack Obama called yesterday for greater openness and transparency on Wall Street in advance of his unveiling today of a tax relief plan for the middle class.

During a speech at Nasdaq in Times Square, Obama denounced a "what's good for me is good enough" mentality that has crept into certain corners of Washington and the business world.

"We will not tolerate 'what's good for me is good enough' any longer - because the only thing that's good enough is what's best for America," he said.

Obama (D-Ill.) proposed an immediate investigation of the relationship and business practices of rating agencies and their clients. And citing the subprime mortgage crisis as an example, he called for more disclosure and accountability in the housing market and credit card industry.

Today, during a speech in Washington, Obama plans to discuss his proposal to modernize and simplify the tax code, with specific initiatives providing a tax break to middle-class Americans, seniors and homeowners.

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Obama's Plan for Simplifying and Lowering Taxes

Obama has called for a reduction of taxes on the middle class. From the Washington Post

Sen. Barack Obama delivered a second economic speech in as many days on Tuesday, announcing $80 billion in proposed tax cuts for working people, homeowners and seniors with the declaration that "the wealth of our nation is rooted in the work of our people."

Obama (D-Ill.) has made confronting special interests and corporate lobbyists a core theme of his campaign, and he elaborated it in his tax cut proposal. Arguing that rich business interests -- rather than market forces -- have conspired to lobby for tax breaks, Obama said it is time to shift the tax burden away from the middle class.


He has also called for a simplifying taxes for seniors. Go Obama! You have to be a certified public accountant to figure out how to fill your tax forms correctly.

Obama proposed eliminating tax returns for some 22 million senior citizens, promising that no retiree making less than $50,000 would pay income tax.
Read more here
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Obama's Plan to Cut Taxes for Seniors

From Iowa's Quad-City Times:

Fixed-income seniors can expect a tax cut

By Sen. Barack Obama | Friday, September 21, 2007

In this country, we have always believed that a lifetime of hard work and honest living should be rewarded with a secure and dignified retirement. But today, too many seniors are being denied that security because they cannot afford the rising costs of everything from their gas to their medicine. The last thing they need is a tax code that works against them as well. That is why earlier this week, I proposed tax relief for seniors.

My plan will eliminate income taxes for about 7 million seniors making less than $50,000 a year. Twenty-two million more won’t even have to file a return, which also means they won’t have to hire an expensive accountant.

This tax cut is needed especially because since 1993 seniors have been bearing an unfair tax burden. That year, a national tax hike raised the amount that millions of seniors had to pay on their Social Security benefits, which meant that their actual benefits were reduced. My tax cut will give these seniors a break without threatening Social Security.

But the truth is, if we’re serious about making retirement security a reality, mitigating the effects of this tax hike is not enough. We have to ensure that Social Security is a safety net that today’s seniors and future generations of Americans can count on.

As the cornerstone of America’s social compact, Social Security has lifted millions of seniors and their families out of poverty. Without Social Security, nearly fifty percent of seniors would live below the poverty line. Here in Iowa, nearly 20 percent of the population – and more than 95 percent of seniors – receive Social Security. The full measure of Social Security’s value for its recipients – as well as for those who look after and love them – is incalculable.

But we all know the system is not perfect. Some have argued that the problems are severe and that Social Security is fundamentally broken. This is an exaggeration. The underlying system is sound and the actual problem, a projected cash shortfall over the next 75 years, is relatively small and can be readily solved.

A return to fiscal responsibility, so we are not borrowing billions from the Social Security trust fund, would help strengthen the program for the long term. If any additional steps are necessary, we should carefully weigh our options. And as president, there are some basic principles I would honor:

First, I will fight against efforts to privatize Social Security, as I and others did when President Bush proposed private accounts a few years ago. Privatization is wrong. It tears at the fabric of Social Security — the idea of mutual responsibility — by subjecting a secure retirement to the whims of the market.

Second, I do not want to cut benefits or raise the retirement age. I believe there are a number of ways we can make Social Security solvent that do not involve placing these added burdens on our seniors. One possible option, for example, is to raise the cap on the amount of income subject to the Social Security tax. If we kept the payroll tax rate exactly the same but applied it to all earnings and not just the first $97,500, we could virtually eliminate the entire Social Security shortfall.

But the fact is, we will not be able to solve this problem and protect Social Security for good until we stop treating it like a political wedge issue and instead unite Republicans and Democrats behind a sensible solution. In 1983, there were problems with Social Security, and President Ronald Reagan and House Speaker Tip O’Neil worked together to forge an effective bipartisan compromise. That sense of civility and shared purpose is notably absent in Washington today.

We need a President who can challenge conventional thinking in Washington, fight for the people’s interests, and bring Americans together to meet the challenges of our time. That is exactly the sort of leadership I intend to offer.
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Obama Proposes Tax Relief for Middle Class and Seniors

Obama is not your stereotypical "tax and spend" Democrat. He is calling for tax relief for the middle class and seniors. What sets Obama apart from all the other candidates is his ability to distill and listen to the best ideas from both sides of the political platform. I am confident that his cabinet would include only the best and the brightest, regardless of political party.

More than anything, we need a politics of common sense. And that is what Obama offers. From the Washington Post:


Obama Proposes $80 Billion in Tax Cuts

Sen. Barack Obama delivered a second economic speech in as many days on Tuesday, announcing $80 billion in proposed tax cuts for working people, homeowners and seniors with the declaration that "the wealth of our nation is rooted in the work of our people."

Obama (D-Ill.) has made confronting special interests and corporate lobbyists a core theme of his campaign, and he elaborated it in his tax cut proposal. Arguing that rich business interests -- rather than market forces -- have conspired to lobby for tax breaks, Obama said it is time to shift the tax burden away from the middle class.

"In our new economy, there is no shortage of new wealth," he told the Tax Policy Center. "But wages are not keeping pace...This isn't the invisible hand of a market at work. It's the successful work of special interests. For decades, we've seen successful strategies to ride anti-tax sentiment in this country towards tax cuts that favor wealth, not work. And for decades, we've seen the gaps in wealth in this country grow wider, while the costs to working people are greater."



Read more here
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Hillary, It's Time to Pass the Torch

I am of the same age group as Barack Obama, and I am an avid supporter. As an African-American woman who grew up in the 1970s post-Civil Rights era, his personal story resonates with me in a way no other public figure has before.

The way he struggled to navigate both the opportunities that were now open to black folks, as well as the continued burden of race and racial stereotypes.

Knowing that yes, we could now be anything we wanted to be… if we put our minds to it. But that we might have to work harder than some whites to get there. Knowing that in our workplace, we would have to “prove” ourselves, and be on the frontlines of a fight for freedom that was brand-new in its victory.

Barack struggled with his identity as a black person, and as a person who didn’t live in an all-black world, who had white family and friends. I grew up in multiracial 1970s Los Angeles as a light-skinned black woman who went to predominantly a white elite private school. So I knew exactly what he was talking about: Where do I fit in? Who am I?

This question goes beyond racial identity. It’s a question we all ask of ourselves when we’re young and struggling to define who and what we are.

I also identify with Barack because he is of the same generation as me. Too young to have been part of the 1960s, but having the juggernaut of older baby boomers continually shaping and defining the culture and politics of our lives.

When I read his book, The Audacity of Hope, this quote jumped out at me:


Despite a forty-year remove, the tumult of the sixties and the subsequent backlash continues to drive our political discourse. Partly it underscores how deeply felt the conflicts of the sixties must have been for the men and women who came of age of that time, and the degree to which the arguments of the era were understood not simply as political disputes but as individual choices that defined personal identity and moral standing.

I suppose it also highlights the fact that the flash-point issues of the sixties were never fully resolved…. And maybe it just has to do with the sheer size of the Baby Boom generation, a demographic force that exerts the same gravitational pull in politics that it exerts on everything else, from the market for Viagra to the number of cup holders automakers put in their cars.

Yes. In all my voting life, the Baby Boomers and their perspective have defined politics. And Barack put the nail on the head for me when he wrote:
In the back-and-forth between Clinton and Gingrich and in the elections of 2000 and 2004, I sometimes felt as if I were watching the psychodrama of the Baby Boom generation—a tale rooted in old grudges and revenge plots hatched on a handful of college campuses long ago—played out on the national stage.
And this is why I am not a supporter of Hillary Clinton. Her moment, the political moment of the Baby Boomers, is over. Hillary, we’ve seen you and your husband for so many years. But it’s time to release your generation’s tight grip on the reins of power. I suggest you do as Al Gore has and devote your life to public service or philanthropy.

Because the playing field has changed, and you can’t keep up.

Hillary’s recycled ideas, her demonizing of the Republicans, her “us vs. them” bunker mentality, the lack of candor, the waffling on Iran and Iraq, the pandering—it all just feels like some stale television re-run that we’ve been watching over and over and over again. Can we please change the channel?

The new channel now includes the Internet. And Hillary’s Clintonian tactics of locking down all media with über press control is not going to work.

Americans have too many opinions to try to control them. And Americans are smart enough to see through the Old-School methods of media spin. Americans can now leave their comments in Internet news stories, and those comments are going to call her on blatant B.S. (Kindergate, anyone?) Americans are tired of being manipulated by politicians.

This need of Hillary to try to continue to be on the national stage is like the overbearing parent who can’t stop controlling the family, even when the family members are more than capable of dealing with their own affairs.

Hillary, relax. Let go. Do good work.

And pass the torch.

It’s time.
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Hillary Clinton's Big Appetite for Pork

Today's Los Angeles Times is finally running the story I've been harping on for months. Hillary Clinton is the queen of pork-barrel spending (aka "earmarks").


Since taking ofice in 2001, Clinton has delivered $500 million worth of earmarks that have specifically benefited 59 corporations. About 64% of those corporations provided funds to her campaigns through donations made by employees, executives, board members or lobbyists, a review by the Los Angeles Times shows.

All told, Clinton has earmarked more than $2.3 billion in federal appropriations for projects in her state since her election to the Senate, much of it for public works projects funded in conjunction with fellow Democratic Sen. Charles E. Schumer and others in the New York congressional delegation.

A different scale

Clinton is not the biggest earmarker in Congress; senior congressional leaders and members of the appropriations committees can and do write many more such provisions into the huge spending bills they draft. But Clinton does significantly more earmarking than most others with her relatively low level of seniority.
Barack Obama has been in the forefront of calling for ethics and earmarks reform, and is the ONLY Democratic candidate who has released his earmarks.

Democrats made earmark reform a priority when they took over Congress in January. The Senate passed rules making it easier to identify the authors of the once-secretive practice.

Clinton supported those basic reforms, but she and other Democratic senators running for president balked at a proposal by Obama that would have required members to disclose their proposed earmark requests, not just those that were enacted into law.

If you want to see a list of his earmarks, click here. He has called for openness and accountability from our government with his call for Ethics Reform in Washington.

It's such a big issue. If you want to read more on Barack Oblogger's take on this, read here.

Just remember folks, it's Hillary "Politics as Usual" vs. Obama "Change, Ethics, and Accountability."
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Drugs, Obama, and the 1970s

For those of you who don't know, in his autobiography Dreams From My Father, Obama wrote about his teenage years growing up in Hawaii and how he experimented with drugs. He wrote the book in 1995, before he ever had any thought of running for national office. The book went out of print for some years, only to be reissued once Obama burst upon the national scene.

Obama himself has said that perhaps many of the things he talked about openly in the book might not have politically expedient, but he wasn't writing it with an eye towards politics at that time.

He was a young biracial man growing up without a father in the 1970s. The book is all about his struggling to find his self-identity, struggling with race, and trying to define what his values were. A journey many of us have to take. This is what he wrote:

Junkie. Pothead. That's where I'd been headed: the final, fatal role of the young would-be black man...The highs hadn't been about that, me trying to prove what a down brother I was. Not by then, anyway. I got high for just the opposite effect, something that could push questions of who I was out of my mind, something that could flatten out the landscape of my heart, blur the edges of my memory."


Evidently, the Clinton New Hampshire chair has stated that Obama's past drug usage could be a problem. He says he's "concerned" about how this could be used against Obama in the general (yeah, real concerned). And of course by talking of his "concern" he's raising the issue. From the Washington Post:

Among his concerns about Obama as the nominee, he said in an interview here today, is that his background is so relatively unknown and that the Republicans would do their best to unearth negative aspects of it, or concoct mistruths about it. Shaheen, a lawyer and influential state power broker, mentioned as an example Obama's use of cocaine and marijuana as a young man, which Obama has been open about in his memoir and on the trail.

"The Republicans are not going to give up without a fight ... and one of the things they're certainly going to jump on is his drug use," said Shaheen, the husband of former N.H. governor Jeanne Shaheen, who is planning to run for the Senate next year. Billy Shaheen contrasted Obama's openness about his past drug use -- which Obama mentioned again at a recent campaign appearance in New Hampshire -- with the approach taken by George W. Bush in 1999 and 2000, when he ruled out questions about his behavior when he was "young and irresponsible."

Shaheen said Obama's candor on the subject would "open the door" to further questions. "It'll be, 'When was the last time? Did you ever give drugs to anyone? Did you sell them to anyone?'" Shaheen said. "There are so many openings for Republican dirty tricks. It's hard to overcome."


For the record, I know a friend who's a white conservative Republican who is thinking of supporting Obama precisely BECAUSE he's come clean about his drug usage. He sees Obama as an honest man. And honesty is an important quality for this voter. (This same conservative Republican, by the way, was back in the day a hard-partying coke dealer, who since has found God, become a parent and is an evangelical Christian.)

I was fortunate enough to have been able to attend an elite, predominately white, private school. And let me tell you, the kids who have the most money were able to buy the most drugs. This has nothing to do with race or class.

Let's get real.

I think this country needs to have a real dialogue about what was really happening in high schools and in the larger culture in the 1970s and 1980s.

The schools were FULL drugs, and most people in their 40s either tried them or had friends who did them.

By the 1970s, even people who were too conservative in the 1960s to try drugs were doing them. I grew up in the 1970s and people's parents were experimenting with drugs.

It's time for America to get off its high horse over this issue.

If we've had the last two (and with Obama as three) presidents who've admitted to experimenting with drugs, whether they inhaled or not, then we've obviously got a larger issue here than one of just character. It was part of the cultural moment of those times.

Obama has stated that he made a mistake and that he decided to stop the behavior. Enough said.

The campaign is fighting back, though. I just received this email this morning from David Plouffe, the campaign manager. The campaign is asking for $100, but I would urge you to donate any amount, even $5, to show your disgust with the kind of negative campaign that Hillary Clinton (muslim email smears, kindergate, and now high-schoo!) is running. Let's have 10,000 people donate today!:

This race took a sharply negative turn yesterday.

With recent polls giving Barack the lead in Iowa, New Hampshire, and South Carolina, and just three weeks left before the Iowa caucuses, the attacks on Barack's character that Hillary Clinton has called "the fun part" of this campaign have reached a new low.

In an increasingly desperate effort to slow Senator Clinton's slide, the focus of the Clinton campaign has moved from Barack Obama's kindergarten years to his teenage years.

On Wednesday, their top advisor in New Hampshire tried to recycle old news by smearing Barack for experimenting with drugs as a young man -- something Barack candidly wrote about years ago in his memoir and has since talked about with young people in an effort to teach them the lessons he learned from his mistakes.

The only way to stop these kinds of tired, desperate attacks is to demonstrate very clearly that they have a real cost to Senator Clinton's campaign.

If 5,000 people donate in the next 24 hours, we can show their campaign that we reject this kind of divisive politics. Make your donation of $100 now:

https://donate.barackobama.com/thecostofnegativity

These remarks crossed a line that should never be crossed in a Democratic primary. In fact, even Republicans think it's beyond the pale. When asked about this very topic recently, one of the GOP presidential frontrunners actually commended Barack's candor and honesty.

It's a sad day when a Democrat running for president takes up a line of attack that even a potential Republican opponent refuses to dignify.

Raise the cost of this kind of negativity for the Clinton campaign by making a donation of $100 now:

Make no mistake -- this kind of attack is becoming a pattern as Clinton's support declines.

Since the last time I wrote to you about their attacks, the Clinton campaign has mailed brochures in Iowa that distort Barack's health care plan, produced negative television ads for New Hampshire, and actually sent emails asking for information that could help them smear Barack's efforts to fight poverty and joblessness as a community organizer in Chicago.

It's up to you to demonstrate to the Clinton campaign that these kinds of attacks will backfire and make us stronger.

Reject this negativity now:

https://donate.barackobama.com/thecostofnegativity

Growing outrage at this line of attack already has the Clinton campaign backtracking in the media, but it's up to us to stop these tired, petty tactics once and for all.

Please respond and make your voice heard for a new kind of politics. Let's bring real change to America.

David

David Plouffe
Campaign Manager
Obama for America

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