Been There, Done That

Obama’s First To-Do List Left America In The Worst Recovery Since The Great Depression And His Second To-Do List Won’t Help

“[P]resident Obama On Tuesday Will Outline A Five-Point ‘To Do’ List For Lawmakers That Packages Job Creation And Mortgage Relief Ideas He Has Proposed Before …”(Jackie Calmes, “Obama Hands Congress Economic ‘To Do’ List,” The New York Times , 5/7/12)

OBAMA GAVE HIS FIRST “TO-DO LIST” TO HARRY REID AND NANCY PELOSI, GOT NEARLY EVERYTHING HE WANTED, AND IT DIDN’T WORK

The Policies Obama Thought Were His Biggest Accomplishments Remain Deeply Unpopular. “A big hurdle for the president is the unpopularity of the very policies that his team thought would be big accomplishments in the first term. Polls show his economic policy, the health care law and the auto bailout gets positive reviews from fewer than half of voters. Hard to see how that changes.” (Jim VandeHei and Mike Allen, “Obama’s Big Drags,”Politico, 8/4/11)

The Miami Herald Headline: “Obama’s First ‘Positive’ Ad Silent On ObamaCare & Stimulus.” (Marc Caputo, “Obama’s First ‘Positive’ Ad Silent On ObamaCare & Stimulus,”The Miami Herald, 5/7/12)

• “Both Are Unpopular, According To Polls. Both Are Signature Accomplishments Of Obama’s Administration.” “Here’s what the ad doesn’t mention: Obama’s healthcare proposal and the $787 billion stimulus program. Both are unpopular, according to polls. Both are signature accomplishments of Obama’s administration.” (Marc Caputo, “Obama’s First ‘Positive’ Ad Silent On ObamaCare & Stimulus,” The Miami Herald , 5/7/12)

Obama Got Almost Everything He Wanted Out Of The Democrat-Controlled Congress.“He passed $830 billion in stimulus, $3 billion for cash for clunkers, $30 billion in small business loans, $30 billion for mortgage modification, the GM-Chrysler bailouts, ObamaCare, Dodd-Frank, credit card price controls, Build America Bonds, jobless benefits for a record 99 weeks, and more. The only priorities that a Democratic Congress blocked were cap-and-tax and union card check, and both of those would have further damaged growth and jobs. Even last December, after Republicans had retaken the House, Mr. Obama won his one-year payroll tax cut, more jobless benefits and most of what he wanted.” (Editorial, “The Latest Jobs Plan,”The Wall Street Journal , 9/9/11)

• “Mr. Obama Has Been The Least Obstructed President Since LBJ In 1965 Or FDR In 1933, Which Is How We Got Here.” “The larger political subtext of Mr. Obama’s speech is that if Congress doesn’t pass his plan, he’ll then campaign against Republicans as obstructionist. Thus his speech mantra that Congress should ‘pass it right away.’ This ignores that Mr. Obama has been the least obstructed President since LBJ in 1965 or FDR in 1933, which is how we got here.” (Editorial, “The Latest Jobs Plan,”The Wall Street Journal , 9/9/11)
• Columbus Dispatch : “He Tried On Tuesday To Blame This On Republican Obstinacy In Congress, But The Fact Is That For Two Of His Three Years In Office, He Had A Democratic Majority In Congress.” “He tried on Tuesday to blame this on Republican obstinacy in Congress, but the fact is that for two of his three years in office, he had a Democratic majority in Congress and it passed his major jobs effort, the $787 billion stimulus plan. Not only that, but he has engaged in almost $4 billion in additional deficit spending. Despite all of this supercharged spending of borrowed money, 23 million Americans still face blighted job prospects.” (Editorial, “Unstated,” The Columbus Dispatch, 1/26/12)

“For Two Years He Had The Largest Democratic Majorities In Congress Since The 1970s And Achieved Nearly Everything He Wanted.” “As he runs for re-election, Mr. Obama is trying to campaign as an incumbent who is striving to help the economy but has been stymied at every turn by Congress. Not even MSNBC can believe this. For two years he had the largest Democratic majorities in Congress since the 1970s and achieved nearly everything he wanted.” (Editorial, “The State Of His Policies,” The Wall Street Journal, 1/25/12)

• Obama Had “The Biggest Senate Majority In Decades” When He Came Into Office . “In 2008, President Barack Obama swept into the White House, and Senate Democrats eventually picked up nine seats, giving the new commander in chief the biggest Senate majority in decades.” (John Bresnahan And Manu Raju, “Obama A Drag On Senate Democrats?,” Politico, 10/20/11)

NOW OBAMA HAS GIVEN UP ON GOVERNING AND RESORTED TO GIMMICKS AND CAMPAIGN STUNTS RATHER THAN LEADING

“Obama’s Wish List Includes A Number Of Proposals That He Has Outlined Previously But Have Failed To Gain Traction In Congress.” (“Obama’s ‘To-Do’ List For Congress,”The Associated Press, 5/8/12)

“[O]bama Is At Some Risk Of Seeming Impotent In The Face Of His Opposition…”“But Mr. Obama is at some risk of seeming impotent in the face of his opposition, and House Republicans complain that their own ideas have languished in the Democratic-controlled Senate.” (Jackie Calmes, “Obama Hands Congress Economic ‘To Do’ List,” The New York Times , 5/7/12)

• Obama Is “Re-Packaging” Ideas That He Has Already Proposed And Campaigned For Around The Country. “Most of the proposals were previewed by Obama in his State of the Union address in January and rolled out during appearances around the country in recent months. But the re-packaging and renewed push ups the pressure on Congress to take action.” (Donovan Slack, “Obama’s ‘To-Do List’,” Politico, 5/8/12)

Obama “Risks Being Viewed As Giving Up On The Legislative Process In Favor Of Politics Long Before Election Day.” “Yet the strategy carries an inherent danger for the president, who risks being viewed as giving up on the legislative process in favor of politics long before Election Day. Obama still needs Congress’s support on other critical matters, such as installing several high-level appointees, including a pair of nominees to the Federal Reserve he announced last week.” (David Nakamura, “Obama’s 2012 Political Strategy: Keep Attacking Unpopular Congress,” The Washington Post , 12/31/11)

• Obama Has Made A Political Calculation That Running Against Congress Is Better Than Working With Congress To Fix The Economy. “Leaving behind a year of bruising legislative battles, President Barack Obama enters his fourth year in office having calculated that he no longer needs Congress to promote his agenda and may even benefit in his re-election campaign if lawmakers accomplish little in 2012.” (Julie Pace, “In 2012, Obama To Press Ahead Without Congress,” The Associated Press, 12/31/11)

OBAMA’S NEW “TO-DO LIST” IS TARGETED AT SAVING HIS JOB BUT WILL DO LITTLE TO PROVIDE JOBS TO STRUGGLING AMERICANS

Obama’s Corporate Tax Proposals Would Put American Companies At A Global Disadvantage

The Wall Street Journal : Obama’s Corporate Tax Plan “Would Make The U.S. Tax System Less Globally Competitive And Raise Effective Tax Rates Above What They Are Today.” “Yesterday’s release of the White House ‘Business Tax Reform’ marks a watershed in the corporate tax debate. Now nearly everyone acknowledges that U.S. corporate tax rates hurt American companies. The headline that President Obama wants voters to see is his new top statutory rate of 28%. If only the story ended there. Alas, his reform is stuffed with so many offsetting business tax increases that the overall impact of this and other proposals would make the U.S. tax system less globally competitive and raise effective tax rates above what they are today.” (Editorial, “Obama’s Tax Reform Muddle,” The Wall Street Journal, 2/23/12)

• WSJ: “The Problem Is That The Tax Increases In This And Other Obama Proposals Would Add New Layers Of Inequity And Inefficiency To The Tax Code.” “The problem is that the tax increases in this and other Obama proposals would add new layers of inequity and inefficiency to the tax code. One principle of tax reform is to create neutrality within and across industries—a level playing field. As the White House proposal puts it, the current code ‘distorts choices such as where to produce, what to invest in, how to finance a business, and what business form to use.’” (Editorial, “Obama’s Tax Reform Muddle,” The Wall Street Journal, 2/23/12)
• Obama’s Corporate Tax Plan Won’t Help Small Businesses And Will “Leave Many Business Owners With Higher Tax Bills.” “Last week, President Barack Obama released a proposal to lower the federal corporate tax rate — a move that on its face would seem to be good news for small businesses. But the president’s pitch isn’t getting rave reviews. Advocates for small business say the plan would benefit a relatively low number of small companies and leave many business owners with higher tax bills.” (“Small Business Community Says Obama Corporate Tax Plan Will Only Benefit A Few,” The Associated Press , 3/1/12)

The Global Minimum Tax Would Give Foreign Companies Doing Business In The U.S. A Tax Cut While U.S. Businesses Abroad Would Get A Tax Hike. “Thus the plan would increase taxes on U.S. multinational companies as a means of paying for the lower corporate tax rate which will largely benefit domestic companies. On that note, it seems very unfair that foreign companies doing business in this country would get a 20 percent tax cut but U.S. companies doing business abroad would get a tax increase. How does that help U.S. competitiveness?” (Scott A. Hodge, “Thoughts On President Obama’s Corporate Tax Plan,” Tax Foundation, 2/23/12)

• “The Administration’s Proposed Global ‘Minimum Tax’ Is A Bit Like Neiman Marcus Declaring Itself The Last Stop Against The Growth Of Discount Retailers Such As Target, Walmart And, Now J.C. Penny.” (Scott A. Hodge, “Thoughts On President Obama’s Corporate Tax Plan,” Tax Foundation, 2/23/12)

Obama’s Plans To Help Homeowners Refinance Have Fallen Flat

Obama’s Proposal “Is The Latest Addition To A Mosaic Of Obama Administration Programs” That Have Failed To Boost The Housing Market. “The proposal, to be released in the coming weeks, is the latest addition to a mosaic of Obama administration programs aimed at boosting the housing market, which is entering its fourth year of weak sales and high foreclosures.” (Lorraine Woellert, “Obama Pushes Proposal To Streamline Refinancing For Homeowners,” Bloomberg, 1/25/12)

The Last Two Incarnations Of Obama’s Refinancing Program Only Helped About 1,000 Homeowners. “Haven’t similar programs been tried before?Yes. But those programs put in place a series of rules designed to ensure that government entities weren’t taking on more risk by allowing investors and banks to offload risky mortgages onto the government. In 2010, for example, the Obama administration rolled out a program to let underwater borrowers refinance through the FHA, but that program required banks to first write down loan balances so that borrowers could qualify under existing rules. Fewer than 1,000 loans have refinanced through the program. Congress approved a more complicated version of this idea in spring 2008 called Hope for Homeowners, but it also resulted in just a few hundred refinances.” (Nick Timiraos, “Six Questions On Obama’s Mortgage Refinance Proposal,” The Wall Street Journal, 1/25/12)

• The Brookings Institute: Obama’s Proposal Does Not Address The Main Reasons Borrowers Default And Would “Only Contribute Mildly To Foreclosure Prevention.” “It is important to note that reducing mortgage interest rates for underwater borrowers should only contribute mildly to foreclosure prevention. The key determinant of foreclosure is the cumulative loan-to-value ratio for the borrower, with a contributor factor being an inability to pay due to job loss. This program would not affect the loan-to-value ratio, as the amount of mortgage debt is unaffected by the refinancing. (This is why the administration’s previous plans to lower mortgage interest rates, through the Home Affordable Modification Program (HAMP), did not result in a substantial reduction in foreclosures.)” (Ted Gayer, “President Obama’s State Of The Union Housing Proposal,” The Brookings Institute, 1/25/12)

Chief Economist At Truila.com, Jed Kolko: “It Won’t Impact The Housing Market Much. Underwater Borrowers Will Remain Underwater, And You Need To Be Current On Your Payments To Refinance.” “Jed Kolko, chief economist and head of analytics at real estate website Trulia.com, said other potential government initiatives such as turning foreclosures into rentals or increasing loan modifications would ‘help the housing market more directly’ ‘This is primarily economic stimulus,’ Kolko said. ‘It puts money in the pockets of people with mortgages. It won’t impact the housing market much. Underwater borrowers will remain underwater, and you need to be current on your payments to refinance.’” (Alejandro Lazo, “Obama Takes Aim At Housing Bust In State Of The Union Speech,” Los Angeles Times, 1/24/12)

Obama’s Hiring Tax Credits Have Not Received A Warm Reception From Business Owners

“Note To President Obama: Don’t Expect A Hiring Tax Credit To Spur Much Hiring.”“Note to President Obama: Don’t expect a hiring tax credit to spur much hiring. So say many economists and businesses, who give a thumbs down to one of the job creation measures the Obama administration is expected to announce Thursday.” (Tami Luhby, “A Hiring Tax Credit Isn’t Likely To Create Jobs,” CNN Money, 9/6/11)

• It’s Still Unclear Whether The 2010 HIRE Act Affected Hiring. “ It’s still unclear whether that measure, the 2010 HIRE Act, achieved its goals. The law temporarily exempted companies from their share of the payroll tax if they hired someone who had been unemployed for at least two months.” (Tami Luhby, “A Hiring Tax Credit Isn’t Likely To Create Jobs,” CNN Money, 9/6/11)

A Company Wouldn’t Hire Because Of A Tax Credit Unless They Were Already Planning To Hire Anyway. “The president is expected to ask Congress to extend the payroll tax holiday for employees beyond Jan. 1 and include employers in the game. Other temporary incentives to encourage hiring are also on the table. Why would any company respond to a one-time tax credit for adding employees when it has to assume a long-term expense — salary and benefits — in the process? Answer: It wouldn’t, unless that company were planning to hire anyway.” (Caroline Baum, “A Layman’s Guide To The President’s Jobs Speech: Caroline Baum,” Bloomberg, 9/7/11)

“A Temporary Tax Credit Of A Few Thousand Bucks Usually Is Not Enough Incentive To Bring On A New Worker, Who Costs Tens Of Thousands Of Dollars In Salary And Benefits.” (Tami Luhby, “A Hiring Tax Credit Isn’t Likely To Create Jobs,” CNN Money , 9/6/11)

Obama’s Energy Programs Have Failed To Stimulate Jobs

The 36 Wind Farms That Received 40 Percent Of The Funding Through The Section 1603 Program, $4.3 Billion, Now Only Employ About 300 People. “About 40% of the funding, $4.3 billion, went to 36 wind farms. During the peak of construction, they employed an average of 200 workers apiece—a total of roughly 7,200 jobs. Now, those projects employ about 300 people, according to the companies and economic development officials. Their parent companies employ many more, both in the U.S. and abroad.”(Ianthe Jeanne Dugan and Justin Scheck, “Cost Of $10 Billion Stimulus Easier To Tally Than New Jobs,” The Wall Street Journal, 2/24/12)

• Despite Lobbying To Extend The 1603 Program, And Receiving $7 Billion, The Wind Energy Industry Shed 10,000 Jobs. “The American Wind Energy Association lobbied successfully in late 2010 to extend the 1603 program through 2011, predicting it would create thousands of jobs. Wind companies wound up with more than $7 billion of the 1603 money, yet industry payrolls declined to 75,000 last year from a peak of 85,000 in 2009, according to the association.” (Ianthe Jeanne Dugan and Justin Scheck, “Cost Of $10 Billion Stimulus Easier To Tally Than New Jobs,” The Wall Street Journal, 2/24/12)

Obama Promised His $38 Billion Green Energy Stimulus Program Would Create Or Save 65,000 Jobs But So Far It Only Has A Few Thousand Jobs To Show For It. “A $38.6 billion loan guarantee program that the Obama administration promised would create or save 65,000 jobs has created just a few thousand jobs two years after it began, government records show. The program — designed to jump-start the nation’s clean technology industry by giving energy companies access to low-cost, government-backed loans — has directly created 3,545 new, permanent jobs after giving out almost half the allocated amount, according to Energy Department tallies.” (Carol D. Leonnig and Steven Mufson, “Obama Green-Tech Program That Backed Solyndra Struggles To Create Jobs,” The Washington Post, 9/14/11)

• As Of September 2011, Half The 20 Companies That Have Loans So Far Have “Neither Created Nor Saved Any Permanent Jobs Yet.” “Still, agency projections indicate that creating jobs is a laborious process. If the 20 companies that have won loans so far deliver all the new jobs they have promised, they will hire a total of 8,050 new workers for permanent positions. Half of those 20 companies have neither created nor saved any permanent jobs yet; several won their loans only recently. Even the BrightSource project, which employs 700 construction workers now, will employ only 86 people on a permanent basis.” (Carol D. Leonnig & Steven Mufson, “Obama Green-Tech Program That Backed Solyndra Struggles To Create Jobs,” The Washington Post , 9/14/11)

Former Biden Economic Advisor Jared Bernstein Explained That Green Energy Firms “Don’t Employ As Many People As You Might Hope.” BERNSTEIN:“Can I make two points? First of all, when I worked for the administration, I was very active in the implementation of the Recovery Act, and one thing we found about clean energy was that if you build a solar plant, you’re going to hire a lot of people. If you run a solar plant, it doesn’t take a ton of people to run some of these plants. They’re very – the labor saving technology around the actual production of clean energy is quite intense. So, some of these firms don’t employ as many people as you might hope.” (Jared Bernstein, American Action Forum’s Housing Event, Washington, D.C., 4/4/12)