Barack Obama on Corporations Junior Senator (IL); President-Elect

We both cut taxes; but McCain offers $200B to corporations

OBAMA: Let me tell you what I’m actually going to do. Tax policy is a major difference between Sen. McCain & myself. We both want to cut taxes; the difference is who we want to cut taxes for. The centerpiece of Sen. McCain’s economic proposal is to provide $200 billion in additional tax breaks to some of the wealthiest corporations in America. Exxon Mobil, and other oil companies, for example, would get an additional $4 billion in tax breaks. About small businesses: not only do 98% of small businesses make less than $250,000 [and hence below my tax increase cutoff], but I also want to give them additional tax breaks, because they are the drivers of the economy. They produce the most jobs.

No capital gains tax on earnings under $250K

McCAIN: Sen. Obama was in Ohio and he had an encounter with a plumber, his name is Joe. Joe wants to buy the business, but he looked at your tax plan and saw he was going to pay higher taxes, which was going to cause him not to be able to employ people. Joe, I’ll not only help you buy that business you worked your whole life for, I’ll keep your taxes low. I will not stand for a tax increase on small business. And what you want to do to Joe and millions like him is have their taxes increased and not be able to realize the American dream of owning their own business.

We need Wall Street responsibility BEFORE financial crises

McCAIN: Sure. But there’s also the issue of responsibility. I’ve been heavily criticized because I called for the resignation of the chairman of the SEC. We’ve got to start also holding people accountable, and we’ve got to reward people who succeed.

OBAMA: McCain’s absolutely right that we need more responsibility, but we need it not just when there is a crisis. We’ve had years in which the reigning economic ideology has been what’s good for Wall Street but not what’s good for Main Street. There are folks out there who have been struggling before this crisis took place. And that’s why it’s so important we look at some of the underlying issues that have led to wages and incomes for ordinary Americans to go down, a health care system that is broken, energy policies that are not working. Unless we are holding ourselves accountable day-in, day-out, not just when there’s a crisis for folks who have power and influence and can hire lobbyists.

High corporate tax rate is offset by numerous loopholes

OBAMA: Here’s what I can tell the American people: 95% of you will get a tax cut. If you make less than $250,000--less than a quarter-million dollars a year--then you will not see one dime’s worth of tax increase. McCain mentioned that business taxes on paper are high in this country, but there are so many loopholes that have been written into the tax code, oftentimes with support of McCain, that we actually see our businesses pay effectively one of the lowest tax rates in the world.

We still need corporate ethics & vigilant government

Enforce against insider trading & market manipulation

In financial markets, Obama believes this means enforcing the laws that prohibit the trading of securities based on insider information.

A just financial system has to enforce laws to prevent insider trading. Similarly, Obama believes there is no place in a just financial system for market manipulation. In a speech in New York, he said, "We must remain vigilant and crack down on trading activity that crosses the line into market manipulation. Reports have circulated in recent days that some traders may have intentionally spread rumors that Bear Stearns was in financial distress while making market bets against the company. The SEC should investigate & punish this kind of market manipulation."

Regulate institutions for what they do, not what they are

1. If you can borrow from the government, you should be subject to government oversight and supervisions.
2. Capital requirements should be strengthened, particularly for complex financial instruments like some of the mortgage securities that led to our current crisis.
3. We need to streamline a framework for overlapping & competing regulatory agencies.
4. We need to regulate institutions for what they do, not what they are. Over the last few years, commercial banks and thrift institutions were subject to guidelines on subprime mortgages that did not apply to mortgage brokers and companies. It makes no sense.
5. We must remain vigilant and crack down on trading activity that crosses the line to market manipulation.
6. Finally, the American people must be able to trust that their government is looking out for all of us--not just those who donate to political campaigns.

Cap the farm subsidies for Fortune 500 companies

End tax breaks for companies that send jobs overseas

In today’s economy, American workers have to compete against high-skilled workers across the globe. Obama will make long-term investments in education, training, & workforce development so that Americans can leverage our strengths--our ingenuity & entrepreneurialism--to create new high-wage jobs

Hold corporations responsible for pensions & work conditions

Hold Corporate America Responsible:
• Obama joined union efforts to get Wal-Mart & other large employers to improve working conditions, wages & health coverage.
• Obama supports amending bankruptcy laws to keep companies from avoiding their pension obligations.
• Obama supported new rules to force companies to properly fund their pension plans so workers aren’t left without adequate retirement security.
• He has also voted to shore up the funding of the Pension Benefit Guaranty Corporation.

Tax incentives for corporate responsibility

Obama’s “REAL USA” Corporations Plan (Responsible, Accountable, Loyal USA Corporations) will reward companies that create quality jobs in America with tax incentives. Companies will be required to:
1. locate in the United States 90% of its production and employment for the sales of goods and services that are consumed here;
2. invest at least 50% of its R&D budget here in the U.S;
3. make sure their workers have access to affordable health care by providing a standardized and portable health insurance plan and pay at least 70% of the cost;
4. make sure their workers have retirement security by contributing at least 5% of payroll to a portable, multi-employer pension fund and operating a profit-sharing plan for all full time employees; and
5. limit management compensation to 50 times the lowest-paid full-time worker.

Close tax loopholes for US companies relocating abroad

REAL USA Plan: Reward companies that create domestic jobs

1. locate in the United States 90% of its production and employment for the sales of goods and services that are consumed here;
2. invest at least 50% of its R&D budget here in the U.S;
3. make sure their workers have access to affordable health care by providing a standardized and portable health insurance plan and pay at least 70% of the cost;
4. make sure their workers have retirement security by contributing at least 5% of payroll to a portable, multi-employer pension fund and operating a profit-sharing plan for all full time employees; and
5. limit management compensation to 50 times the lowest-paid full-time worker.

Voted YES on repealing tax subsidy for companies which move US jobs offshore.

Voted NO on reforming bankruptcy to include means-testing & restrictions.

• Declare a debtor eligible only for Chapter 13, as anyone financially capable of paying back their creditors at a rate that still allows them to earn above their state's median income
• Place domestic support obligations such as child support and alimony amongst the first priority claim category of non-dischargeable debts on a debtor filing for bankruptcy
• Require debtors to pay for and attend credit counseling prior to filing for bankruptcy
• Cap home equity protection at $125,000 if the debtor purchased a house within 40 months of filing for bankruptcy.

Prevent money laundering by disclosing corporate owners.

A bill to ensure that persons who form corporations in the United States disclose the beneficial owners of those corporations, in order to prevent wrongdoers from exploiting United States corporations for criminal gain, to assist law enforcement in detecting, preventing, and punishing terrorism, money laundering, and other misconduct involving United States corporations, and for other purposes.