Student Blog: Thoughts On The Law And The Legal Field
OBAMA'S ROLE IN TURNING AROUND THE ECONOMY
President Obama came into office in the worst economic/financial crisis since the 1930's. Thanks to steps the Obama Administration has taken, the economy is now growing by 6%. The Obama administration broke the recession and reduced the sense of panic that had grown by advocating for a thriving "even playing field for businesses to raise capital and for consumers to buy products with confidence."
Not all new legislation has been praised. Controversial legislation includes proposals to change tax laws that apply to multinational businesses. Currently if one owns a business in the U.S., invests in the U.S., and has workers in the U.S., he/she is taxed at a given rate. But if one runs a business and only his headquarters are located in the U.S. (workforce, equipment, plants, and investments are abroad), then he can deduct all expenses abroad and keep all profits outside the U.S. The Obama Administration wants to change this unfair practice.
Another debated move was Obama's signing a "Paygo" Bill in February 2010 which requires Congress to pay for what it spends. The debated issued was Obama quietly also lifting the cap on the amount of money the U.S. can borrow. He increased this limit from $12.4 trillion to $14.3 trillion ($1.9 trillion increase). Supposedly he raised the cap to prevent the U.S. from going into default.
Sources- Darlene Superville, Obama Touts 'Paygo' Return, Feb. 14, 2010, The Press Enterprise at C1. Josh Tyrangiel, Obama's Corporate Messaging, Feb 8, 2010, Bloomberg BusinessWeek.
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