Obama Using Business CEOs Meeting to Apply Budget Pressure

16 Sep 2015 | Author: | No comments yet »

Obama Dusts Off Attack on Carried Interest for Budget Fight.

“There’s not a country out there, including China, that wouldn’t look at us with envy right now,” Obama told members of the Business Roundtable in Washington. “Our problem is not that China will out negotiate us or [Russian President Vladimir] Putin will out-strategize us.President Barack Obama is preparing to join the fight over the federal budget by pushing Republicans to scrap a tax advantage for private-equity Masters of the Universe.

He also pointed to a potential revenue source to pay for some of the increased investments he wants in infrastructure, education and scientific research — taxing so-called “carried interest” as ordinary income rather than as a capital gain, which is taxed at a lower rate. With two weeks left before a potential shutdown, Obama will outline for corporate CEOs on Wednesday a tax increase on income earned by fund managers, called carried interest, a White House official said. The proposed change is aimed primarily at managers of some types of private investment funds who pay a lower tax rate on their income than do many individuals. Our problem is us, typically.” He went on to criticize some Republicans for opposing the extension of the Export-Import Bank, infrastructure projects and other initiatives he said should be bipartisan. “The notion that we are not doing them right now is primarily because a faction within one of our parties has gone off the rails and sees a conspiracy around everything, or simply is opposed to everything I’ve proposed even if they used to propose it, that’s a problem,” Obama said. “I think it’s important for you to step back and take a look at because you still have influence on at least some of those folks.” “Democrats are willing to work with Republicans right now as we speak, but it should be over legitimate questions of spending and revenue not on unrelated ideological issues,” Obama said. “You’ll recall two years ago, Republicans shut down the government because they didn’t like Obamacare. He noted, without naming them, that some Republican presidential candidates, primarily Donald Trump and Jeb Bush, have voiced support for increasing taxes on carried interest. “If we close the tax loophole, we could double the number of workers in America’s job-training programs, we could help another 4 million more students afford college,” Obama said.

This approach “is an example of how we can maintain fiscal responsibility while at the same time making the investments that we need to grow,” he later added. His latest push comes as rising income inequality has made hedge fund managers the target of both Democrats and Republicans seeking the 2016 presidential nomination. He said it’s doing better than those countries who have embraced spending cuts to climb their way out of tough economic times and that “perennial gloom and doom” descriptions are perpetuated by the presidential campaign that will determine his successor.

In taking his message to CEOs at a Business Roundtable event Wednesday, Obama will be highlighting a division between Republicans in Congress and some Republicans running for president on an issue important to Wall Street. He said, “America is great right now,” and later warned against “name-calling” in negotiations with China, a near-certain reference to GOP presidential candidate Donald Trump. But Senate Majority Leader Mitch McConnell, Kentucky Republican, has said there won’t be a government shutdown over that issue or any other. “Today some are suggesting the government should be shut down because they don’t like Planned Parenthood,” Mr.

Jeb Bush, both of whom support closing tax loopholes, which Obama has long supported. “You’ve got two leading candidates on the Republican side who said we should eliminate the carried interest loophole. The group is worried about a potential standoff regarding the budget, and further down the road, raising the debt ceiling. “Predictability is critical to spur investment and unlock economic expansion and job growth,” said Randall Stephenson, chairman of the trade group and CEO of AT&T Inc. Obama also said that he intends to raise the issue of cybersecurity with Chinese President Xi Jinping when he hosts the Chinese leader for an official state visit at the White House next week.

The president confirmed that the U.S. is preparing sanctions against Chinese companies that are believed to be stealing trade secrets from U.S. firms. “This will probably be one of the biggest topics that I discuss with President Xi,” Mr. Bush faces the kind of do-or-die moment most top-tier candidates confront later in the primary process—a chance to revive a campaign that has shattered fundraising records but sunk as low as 6% in recent national polls. Bush said Jeb “needs to show he’s the tough-minded guy we know he is.” If he doesn’t, the former aide said, “Well, you know, it might be over.” Biden rips Trump’s ‘sick’ immigration views: Vice President Joe Biden, who is weighing a late entry into the Democratic presidential primary, lashed out at Donald Trump on immigration on Tuesday.

He has threatened to veto every spending bill Republicans have produced so far because they would provide less money for the government than he requested. The vice president called Republican front-runner Trump’s message “sick” and predicted it “will not prevail.” Trump has roiled the GOP field with his call to remove millions of people living in the U.S. illegally before allowing some to return. All unmanned aircraft will be prohibited from those cities, as well as their surrounding communities, from Sept. 22 through Sept. 27, the Federal Aviation Administration announced.

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