I was interested in the 6 broken promises:
1. End Income Tax for Seniors Making Less than $50,000 (updated to stalled)
Not in the stimulus bill. The seniors did get their $250 economic stimulus payment for the first time ever.
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We should add that the Tax Policy Center didn't care for this idea because it conflicted with the center's mission statement that taxes should be "fair, simple and efficient." In a report on Obama's tax proposals, author and tax analyst Roberton Williams said that the move exacerbates inequity between older and younger taxpayers with the same income:
"Most senior citizens already pay no income tax because they may claim an additional standard deduction and because most Social Security benefits are not subject to tax; nobody age 65 and over whose income comes entirely or almost entirely from Social Security pays income tax. Obama’s proposal would remove even more elderly from the tax rolls while maintaining taxes on working families with similar income but greater need. With federal spending on programs for the elderly projected to soar as the baby boomers retire, targeting special tax breaks on the elderly seems inappropriate. Furthermore, the proposal only helps seniors who currently pay income taxes; those too poor to owe any tax — arguably those most in need — would get no benefit."
Whether the policy is advisable or not, it's not listed explicitly in the budget outline, even though other tax credits and deductions are mentioned prominently. More details on the budget will be released in April, and Congress must approve the final package. But for now, because this measure is not part of the initial budget proposal, we're rating this item Stalled.
2. Allow 5 days of comment on public bills before signing - just flat broken, although there are signs of life when they put up a bill with a place for public comment. Unfortunately, it's more often than not done without the 5 days of comment,as far as I can tell.
3.
Tougher rules against lobbyists, etc. - the law is good, the waivers and recusals bad.
4. Create a $3,000 credit per employee for companies who create jobs - never gonna happen. There's no support on either side of the fence in Congress for this.
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It never got any significant support in Congress, even from Democrats. Lawmakers said they were concerned the credit wasn't enough of an incentive to get companies to hire additional workers. Tax policy analysts said the credit would be an administrative nightmare to implement. Companies might eliminate a job and then create it again later in hopes of getting the tax credit.
Sen. Charles Schumer, D-N.Y., said at a news conference on Jan. 14, 2009, that both Democrats and Republicans had problems with the measure.
"If you have a company and you're selling fewer shingles, $3,000 isn't going to get you to hire somebody when your sales are shrinking," Schumer said.
5.
Allow penalty-free hardship withdrawals from retirement accounts in 2008 and 2009 - just flat broken, and maybe that's not a bad idea:
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The measure, which Obama proposed during the fall of 2008 as the economy was swooning, would have allowed workers to take money from their 401(k) retirement accounts before retirement, but without the usual penalty of 10 percent on top of regular taxes. The idea was to help cash-strapped workers get through hard times without having to absorb penalties for their bad fortune.
The potential downside to the idea is that money taken out now won't earn compounded growth later to build wealth. Also, early withdrawals lock in market losses that might turn around in time.
6.
Recognize the Armenian genocide - broken. The why? Negotiations on this subject have been opened and are ongoing between the Turks and Armenians.
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"I want to be as encouraging as possible around those negotiations which are moving forward and could bear fruit very quickly very soon. And so as a consequence, what I want to do is not focus on my views right now but focus on the views of the Turkish and the Armenian people. If they can move forward and deal with a difficult and tragic history, then I think the entire world should encourage them.
"And so what I told the president was I want to be as constructive as possible in moving these issues forward quickly. And my sense is, is that they are moving quickly. I don't want to, as the president of the United States, pre-empt any possible arrangements or announcements that might be made in the near future. I just want to say that we are going to be a partner in working through these issues in such a way that the most important parties, the Turks and the Armenians, are finally coming to terms in a constructive way."
Translation: Don't piss off Turkey during the negotiations.
Not too bad overall.
Edited by Rhea, 06 July 2009 - 11:15 AM.