TUE, MAY 5, 1:38 PM EST
The President and Mexican Ambassador Arturo Sarukhan got an early start on Cinco de Mayo at the White House last night, as did the First Lady at the Latin American Montessori Bilingual Charter School.
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(First Lady Michelle Obama attends Cinco de Mayo celebration program Monday,
May 4, 2009, at the Latin American Montessori Bilingual Charter School in
Washington, D.C. White House Photos by Samantha Appleton)
TUE, MAY 5, 9:48 AM EST
Yesterday, even before we posted here on the blog about the President's proposals to curb offshore tax havens and end tax incentives for companies shifting jobs overseas, we asked for your reactions on our various social networking outposts. As we expected, there were a lot of interesting comments and questions, largely supporting the President but some raising concerns and objections. We asked Jason Furman, Deputy Director of the National Economic Council, to address some of them:
kylekunkler: Ending deferral (when US already has 2nd highest corporate tax) will only hurt US MNCs and cost jobs! http://tinyurl.com/coofnd
Jason Furman: Kyle, you are correct that the United States has the second highest statutory tax rate in the world, the official rate published in the tax code. But the United States also has more loopholes and special tax preferences than many other countries. As a result, the United States has a much lower effective tax rate. If you look at corporate taxes as a share of GDP they are below those of most major economies. The result is a tax code that is complicated, inefficient and unfair. One of major causes of these problems is the way that we tax – or more often do not tax – the foreign earnings of American companies. The administration’s plan is intended as a major, first step in addressing this problem.
ScottGjerdingen: What sort of jobs would be impacted by Obama's "offshore jobs" corporate cutback on tax benefits?
Jason Furman: Scott, you ask an important question of what jobs would be affected by the President’s proposal. In answering it is important to look at both halves of the proposal. One half is to end special tax preferences for creating jobs overseas. The goal of this is not to stop American companies from competing and succeeding in the global economy. What the President wants is to stop giving them special subsidies for doing so – subsidies they would not get for investing in the United States. The result will be to shift more investment and job creation to the United States. The second half of the policy is to take these savings and use them to cut taxes in businesses that create jobs in the United States by making the tax credit for research & development permanent. The direct beneficiaries of this policy will be companies engaged in research and development, but the innovations that result will have important spillover effects, creating jobs and raising wages across the economy.
Marc Solomon: Bringing jobs back to the US by switching tax incentives from creating jobs overseas to creating jobs in the US is a wonderful idea. My concern is, if the goal is to make our tax laws fairer and simpler, this accomplishes only the first and not the second (and of course that assumes fairer means fairer for US citizens and not for all people of the ... Read Moreworld). Wouldn't just removing the tax incentives for creating jobs overseas accomplish BOTH goals and not just the one? It would definitely simplify the tax laws and be fair for all people, not just U.S. citizens (although, personally, I am prejudiced to being fairer for U.S. citizens).
Jason Furman: Marc, you should understand that today’s announcement is a down-payment on the President’s overall tax agenda. As he said in his remarks today, "the steps I am announcing today will help us deal with some of the most egregious examples of what's wrong with our tax code and will help us strengthen some of these other efforts. It's a down payment on the larger tax reform we need to make our tax system simpler and fairer and more efficient for individuals and corporations." That said, the proposals the President made today would start to simplify the tax code. This includes the President’s proposal to reward companies that create jobs in America – which would make the research and development tax credit permanent, adding more predictability and stability to the tax code because companies would no longer have to worry about whether or not the credit would expire or continue.
MON, MAY 4, 1:06 PM EST
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One of the most frequent questions we get, whether through our comment form or through the Open for Questions session we launched for the President’s online town hall, is about the incentives in the tax code for companies to shift jobs overseas. This was one of the top questions in the jobs section, for example:
"What are your plans to encourage corporations to keep middle class jobs, such as customer service call centers and transactional based support services like accounting and computer program jobs, in the U.S?"
PAG, Houston, TX
Today the President answered that question with proposals to curb tax havens and replace tax advantages for creating jobs overseas with incentives to create them here at home.
The President closed
his remarks on a note of basic fairness:
So the steps I am announcing today will help us deal with some of the most egregious examples of what's wrong with our tax code and will help us strengthen some of these other efforts. It's a down payment on the larger tax reform we need to make our tax system simpler and fairer and more efficient for individuals and corporations.
Now, it will take time to undo the damage of distorted provisions that were slipped into our tax code by lobbyists and special interests, but with the steps I'm announcing today we are beginning to crack down on Americans who are bending or breaking the rules, and we're helping to ensure that all Americans are contributing their fair share.
In other words, we're beginning to restore fairness and balance to our tax code. That's what I promised I would do during the campaign, that's what I'm committed to doing as President, and that is what I will work with members of my administration and members of Congress to accomplish in the months and years to come.
1) Replacing Tax Advantages for Creating Jobs Overseas With Incentives to Create Them at Home
· Reforming Deferral Rules to Curb A Tax Advantage for Investing and Reinvesting Overseas
· Closing Foreign Tax Credit Loopholes
· Using Savings To Make Permanent The Tax Credit for Investing in Research and Experimentation at Home
2) Getting Tough on Overseas Tax Havens
· Eliminating Loopholes for "Disappearing" Offshore Subsidiaries
· Cracking Down on the Abuse of Tax Havens by Individuals
· Devoting New Resources for IRS Enforcement to Help Close the International Tax Gap
MON, MAY 4, 10:01 AM EST
This morning Nancy-Ann DeParle, Director of the White House Office of Health Reform, is meeting with rural Americans in the fourth in a series of White House Health Care Stakeholder Discussions.
- Nearly one in five of the uninsured – 8.5 million people – live in rural areas.
- Rural residents pay on average for 40% of their health care costs out of their own pocket, compared with the urban share of one-third.
- In a multi-state survey, one in five insured farmers had medical debt
Late Update: Rebecca Adelman of HHS reports back on the meeting:
Health care in rural America has been a significant topic of conversation at every health reform stakeholder event held at the White House over the past three months, and for good reason. Rural Americans are being hit especially hard by the skyrocketing cost of health care, and many live hundreds of miles away from the physicians and hospitals they need for treatment. Earlier today, representatives from rural communities met with White House office of Health Reform Director Nancy-Ann DeParle to discuss the state of the health care system outside America’s largest cities.
There are nearly 50 million people living in rural America who face unique challenges accessing quality and affordable health care. Rural Americans are more likely to live in poverty, and have fewer providers in their communities. They report more health problems, and are more likely to be without health insurance than citizens living in urban areas. They are also more likely to delay medical treatment because they cannot afford it. According to a new study released today on www.healthreform.gov, nearly one in five of the uninsured – 8.5 million people – live in rural areas.
The meeting participants gathered at the White House included farmers, ranchers, teachers, and fishermen, who spoke of their shared difficulty affording health care. Dr. Wayne Meyers, a pediatrician and organic farmer in rural Maine, summed it up by saying: "For most rural people, cost is the bottom line…health care costs are eating us alive." Many participants expressed frustration that farmers who spend their lives growing healthy food for the nation are struggling to afford medical care they need to live healthy lives. Jon Bailey, Director of the Rural Research and Analysis Program, spoke to the difficulty many small businesses are having in rural areas as they attempt to remain profitable while paying huge sums for health care coverage. Bailey said, "If we don’t solve the health care issues of small businesses, and farmers and ranchers and fishermen in rural areas, we won’t have an entrepreneurial economy, and that means we won’t have much of an economy in rural America."
Mary Wakefield, Administrator of the Health Resources and Services Administration within the U.S. Department of Health and Human Services and Congressman Mike Ross (D-AR) were both on hand to listen. Congressman Ross closed the meeting by thanking Nancy-Ann DeParle and President Obama for their attention to rural health care issues, and for bringing together a diverse group from outside Washington, D.C. to share their experiences and concerns. DeParle made a point to emphasize the President’s commitment to enacting comprehensive health reform that will help rural Americans by lowering costs, guaranteeing choice of doctors and plans, and assuring quality and affordable coverage for all Americans.
SAT, MAY 2, 4:50 AM EST
In his Weekly Address, the President discusses the government’s response to the 2009 H1N1 flu virus, from school closings to activating online social networks. He urges Americans to be calm but cautious.
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President Obama: This is also why the Centers for Disease Control has recommended that schools and child care facilities with confirmed cases of the virus close for up to fourteen days. It is why we urge employers to allow infected employees to take as many sick days as necessary. If more schools are forced to close, we’ve also recommended that both parents and businesses think about contingency plans if children do have to stay home. We have asked every American to take the same steps you would take to prevent any other flu: keep your hands washed; cover your mouth when you cough; stay home from work if you’re sick; and keep your children home from school if they’re sick. And the White House has launched pages in Facebook, MySpace and Twitter to support the ongoing efforts by the CDC to update the public as quickly and effectively as possible.
FRI, MAY 1, 7:08 PM EST
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This afternoon the President attended a naturalization ceremony for active duty service members in the East Room of the White House, along with Homeland Security Secretary Janet Napolitano who delivered the oath of allegiance. It was a meaningful moment to reflect on what it means to be an American.
The President also presented the Outstanding American by Choice award to Peter Lemon, whose amazing story you can read along with the names of all of the new American citizens in the
background to the event.
You all have your own stories of how you came to this country. And you all have your own personal reasons for why you joined the military. But in the service that you render, in the sacrifices that each of you have made and will continue to make, in the commitment you've shown to your adopted nation, you're part of a larger story -- America's story.
For more than two centuries, this nation has been a beacon of hope and opportunity -- a place that has drawn enterprising men and women from around the world who have sought to build a life as good as their talents and their hard work would allow. And generation after generation of immigrants have come to these shores because they believe that in America all things are possible.
So you are not only living examples of that promise; you're also serving to defend that promise for future generations. And your service reminds all of us that much of the strength of this country is drawn from those who have chosen to call it home. It's not lost on me or anybody here today that at a time when we face an economic crisis born in many ways of irresponsibility, there are those who are actively pursuing greater responsibility.
FRI, MAY 1, 6:10 PM EST
As he has done before in the spirit of transparency, Norm Eisen, special counsel to the president for ethics and government reform, asked us to pass along this update on the President’s Executive Order on Ethics:
Just a quick post to advise that we granted an authorization under Section 3 of the President’s Ethics Executive Order to Senior Advisor Valerie Jarrett to lead the White House's effort to support Chicago's bid to secure the 2016 Olympics.
The President promised during the campaign that staff would not work on contracts or regulations directly related to their former employers. We have captured that promise in Paragraph 2 of our revolving door rules, which applies to non-lobbyists. Valerie previously served as Vice Chair of Chicago 2016, the non-profit entity responsible for the Chicago bid. Although Chicago 2016 was not her "former employer" in traditional terms, the term "former employer" in the President's Order encompasses entities that appointees served as directors or officers, as Valerie did here. (To be clear, Valerie was not a lobbyist for Chicago 2016, and this waiver has nothing to do with lobbying.)
We decided that a waiver of Paragraph 2 was in the public interest in order to help bring the Olympics back to the United States. Valerie’s past experience with Chicago 2016 makes her ideal to work with the city and its bid committee to help win the Olympics for the U.S., with the many benefits that would bestow. In her time working with the City of Chicago on its bid, she developed knowledge about the process that will make her a powerful advocate and liaison. Although Valerie previously volunteered with Chicago 2016, she has no continuing financial relationship with them. Since the Administration already plans on vigorously supporting the United States’ sole 2016 Olympic bid, we felt that letting Valerie lead our efforts was strongly in the public interest. The authorization can be found here (pdf).
As I have previously noted on this blog, the availability of waivers in appropriate cases has been praised by ethics experts and commentators alike:
*Norman Ornstein, a Resident Scholar at the American Enterprise Institute stated that "This tough and commendable new set of ethics provisions goes a long way toward breaking the worst effects of the revolving door. There are many qualified people for the vast majority of government posts. But a tough ethics provision cannot be so tough and rigid that it hurts the country unintentionally. Kudos to President Obama for adding a waiver provision, to be used sparingly for special cases in the national interest. This is all about appropriate balance, and this new executive order strikes just the right balance."
*Thomas Mann, Senior Fellow of Governance Studies and the Brookings Institution said that "The new Obama ethics code is strict and should advance the objective of reducing the purely financial incentives in public service. I applaud another provision of the EO, namely the waiver provision that allows the government to secure the essential services of individuals who might formally be constrained from doing so by the letter of the code. The safeguards built into the waiver provision strike the right balance."
*The Washington Post editorialized that the President had "adopted a tough ethics policy . . . sweeping in time and scope." The editorial board wrote that "The president's rule ensures that any conflicts will be carefully watched, and his flexibility despite certain criticism signals an ability to make hard but reasonable calls."
FRI, MAY 1, 4:23 PM EST
The President made an appearance at today's press briefing to discuss Justice David Souter's retirement:
THE PRESIDENT: I just got off the telephone with Justice Souter. And so I would like to say a few words about his decision to retire from the Supreme Court.
Throughout his two decades on the Supreme Court, Justice Souter has shown what it means to be a fair-minded and independent judge. He came to the bench with no particular ideology. He never sought to promote a political agenda. And he consistently defied labels and rejected absolutes, focusing instead on just one task -- reaching a just result in the case that was before him.
He approached judging as he approaches life, with a feverish work ethic and a good sense of humor, with integrity, equanimity and compassion -- the hallmark of not just being a good judge, but of being a good person.
I am incredibly grateful for his dedicated service. I told him as much when we spoke. I spoke on behalf of the American people thanking him for his service. And I wish him safe travels on his journey home to his beloved New Hampshire and on the road ahead.
Now, the process of selecting someone to replace Justice Souter is among my most serious responsibilities as President. So I will seek somebody with a sharp and independent mind and a record of excellence and integrity. I will seek someone who understands that justice isn't about some abstract legal theory or footnote in a case book. It is also about how our laws affect the daily realities of people's lives -- whether they can make a living and care for their families; whether they feel safe in their homes and welcome in their own nation.
I view that quality of empathy, of understanding and identifying with people's hopes and struggles as an essential ingredient for arriving as just decisions and outcomes. I will seek somebody who is dedicated to the rule of law, who honors our constitutional traditions, who respects the integrity of the judicial process and the appropriate limits of the judicial role. I will seek somebody who shares my respect for constitutional values on which this nation was founded, and who brings a thoughtful understanding of how to apply them in our time.
As I make this decision, I intend to consult with members of both parties across the political spectrum. And it is my hope that we can swear in our new Supreme Court Justice in time for him or her to be seated by the first Monday in October when the Court's new term begins.
FRI, MAY 1, 2:03 PM EST
In the President’s last Weekly Address, he called on government to "recognize that we cannot meet the challenges of today with old habits and stale thinking." He added that "we need to reform our government so that it is more efficient, more transparent, and more creative," and pledged to "reach beyond the halls of government" to engage the public. Today the White House is taking steps to expand how the Administration is communicating with the public, including the latest information and guidance about the H1N1 virus. In addition to WhiteHouse.gov, you can now find us in a number of other spots on the web:
The WhiteHouse blog (RSS) will power a lot of the content in these networks, but we’re looking forward to hearing from our fans, friends and followers. Don’t forget these sites as well:
Technology has profoundly impacted how – and where – we all consume information and communicate with one another. WhiteHouse.gov is an important part of the Administration’s effort to use the internet to reach the public quickly and effectively – but it isn’t the only place.
There’s a lot to talk about right now. From an economic crisis to wars in Iraq and Afghanistan, the President and his Administration have a full plate – not the least of which is making sure the public stays up-to-date and involved in our efforts.
Here’s an important thing you can do right now. The Department of Homeland Security, as well as the Department of Health and Human Services, supported by the Center for Disease Control, have been working around the clock to make sure that the public has the latest facts about the H1N1 virus. This is a serious situation that demands serious precautions. No precaution is more essential than having the most accurate information, so head over to the CDC page to get the latest news, prevention tips – and tools you can use to promote public health efforts around the web.
FRI, MAY 1, 10:13 AM EST
We will have more on their visit later, but in the meantime watch a quick shoot-around from earlier this week when the undefeated women's basketball national champions, the UCONN Huskies, came to the White House.
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UPDATE:
Maya Moore,
this year’s winner of the John R. Wooden Award as the women's college basketball player of the year, dropped us a note after her visit:
Wow what an experience! I am still in shock that my teammates and I were able to be in the same atmosphere as some of the greatest leaders in history. As we were taking a tour of the rooms of the White House, like the famous Red Room, I felt a deeper appreciation for the founders of this nation. We truly do live in an amazing country and actually walking where some of our great leaders have walked gave me chills! Meeting President Obama was as enjoyable as advertised, and he left an inspiring impression on us all. The way he took the time to shake hands, take pictures, and talk to everyone showed his humility and genuine personality. The way he sacrificed some extra time out of his day to shoot a few shots with us made me remember what life is all about. It is about investing in people and having faith that the love you impart on them will somehow make the world better than it was. Thank you to President Obama and everyone who made this event possible!
