Barack Obama, the 44th President of the United States of America, served two terms from 2009 to 2017. During his tenure, taxes were a critical issue that caused numerous debates and discussions among politicians and citizens alike. President Obama’s outlook on taxes was one of the most significant characteristics that defined his presidency.
This article reviews Obama’s outlook on taxes and the changes that he implemented during his eight-year presidency. The article provides updated information on the topic using government resources and shall be structured as follows:
1. Introduction
2. Obama’s tax policy
3. Tax policy under Obama’s presidency
4. Conclusion
Introduction
Taxes have been a significant issue in American politics for decades, and President Obama was no exception to this. The tax policies that he championed reflected his vision of a just and equitable society, where everyone paid their fair share. During his presidency, Barack Obama implemented several tax policies aimed at making the tax system work better for the middle-class families and boosting economic growth.
Obama’s Tax Policy
President Obama’s tax policy was a progressive approach to taxation. His primary goal was to redistribute wealth, improve transparency, and create a tax system that is fair to everyone. Obama believed in a progressive income tax policy, where the wealthy pay higher taxes because they have an obligation to contribute more to society. Below are some of the significant initiatives in Obama’s tax policy:
– Raising taxes on the wealthy: President Obama believed that the wealthy should pay more taxes to help reduce income inequality. In 2013, Obama proposed a budget that included raising taxes on the wealthy by increasing the marginal tax rate from 35% to 39.6% for earnings above $250,000 per year.
– Closing tax loopholes: Obama also focused on closing tax loopholes that large corporations and wealthy individuals use to avoid paying taxes. In 2011, he unveiled the “”Buffett Rule,”” which sought to ensure that the wealthiest Americans pay their fair share of taxes. The rule proposed that households making over $1 million annually should pay at least 30% of their income in taxes.
– Tax credits for the middle class: President Obama championed tax credits for middle-class families to boost their purchasing power and stimulate the economy. The Obama administration offered tax breaks for small businesses, homeowners, and college students.
– Estate tax reforms: The estate tax was another area that Obama sought to reform. The estate tax applies to the transfer of property or assets from a deceased person to their heirs. Obama proposed a 45% tax rate for estates worth more than $3.5 million.
Tax policy under Obama’s presidency
During his tenure, Obama signed several tax bills into law that sought to address critical issues such as income inequality, education, healthcare, and financial stability. Let us take a closer look at some of these bills.
The American Recovery and Reinvestment Act (ARRA)
In 2009, Obama signed into law the American Recovery and Reinvestment Act (ARRA), which aimed to stimulate economic growth by creating jobs, increasing infrastructure spending and providing tax relief to the middle class. The act offered tax credits to first-time homebuyers and people buying energy-efficient appliances. It also extended unemployment benefits and provided emergency loans to small businesses.
The Affordable Care Act (ACA)
The Affordable Care Act (ACA) was one of Obama’s most significant achievements as president. The ACA aimed to increase access to healthcare and reduce healthcare costs for millions of Americans. The act included tax provisions such as the premium tax credit, which helps consumers purchase health insurance. The ACA also increased taxes on high-income earners and imposed a tax penalty on individuals who did not have health insurance.
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act
In 2010, Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act to extend tax cuts that were set to expire. The act included several tax provisions, such as payroll tax cuts, which provided relief to millions of workers. Additionally, the act extended unemployment benefits and provided tax incentives for businesses to hire new employees.
The American Taxpayer Relief Act
In 2013, Obama signed the American Taxpayer Relief Act to avert the “”fiscal cliff.”” The act extended tax cuts for the middle class, increased the top marginal tax rate to 39.6%, and reinstated the estate tax with a 40% rate.
The Tax Cuts and Jobs Act
In 2017, President Donald Trump signed the Tax Cuts and Jobs Act (TCJA), which was the most significant tax overhaul since the Reagan administration. The TCJA lowered the tax rates for individuals and corporations and increased the standard deduction. The act also repealed the penalty for not having health insurance, which was a key provision of the ACA.
Conclusion
Barack Obama’s outlook on taxes was one of the defining characteristics of his presidency. His tax policy was focused on reducing income inequality, increasing transparency, and making the tax system more equitable. During his tenure, Obama signed several tax bills into law that sought to stimulate economic growth, increase access to healthcare, and provide tax relief to middle-class families. While Obama’s tax policies were controversial, they reflected his belief in creating a fair and just society.
Barrack Obama’s tax plan includes the idea that the state of the economy calls for tax relief, especially to lower and middle class families. Tax cuts would also apply to small business to ensure that they could contribute to job growth by hiring new employees or keeping the ones they currently have. Overall, the tax breaks in Barrack Obama’s tax plan would be aimed at providing a boost to the economy.
Obama and taxes have provided a wealth of controversy. The wealthy fear that they will become responsible for a larger portion of the tax burden, while the middle and lower class feel that they will be unfairly taxed as well.
Obama and taxes have also included controversy over the programs that will receive a cut in funding, such as Medicare which will see no cost of living increase this year.
The tax cuts proposed under the plan, include tax breaks to working individuals and working couples. Seniors would also receive large tax breaks, especially the lower and middle class.
There are also proposals in which those families that are sending children to college, would receive a tax break for the years that those children are enrolled as full time students. In addition, those that are uninsured would also receive tax cuts until the new health care system is in effect.
The goal of Barrack Obama’s tax plan is to stimulate the economy by providing the lower and middle class with more money to spend, as well as more money to save.
