February 9th, 2009
09:35 PM ET

Obama: Tax cuts won't work

President Obama explains why the economic stimulus bill will help the economy.

Filed under: Economy • Finance • President Barack Obama
soundoff (31 Responses)
  1. jim Fallbrook CA

    I don't know where our socialist president Barack Hussein Obama got his facts from. History proves that tax cuts does work. It worked when Ronald Reagan inherited the worst recession in history from the worst president in history Jimmy carter. Also worked for George W. Bush from the recession he inherited from President William J Clinton. For our tax cheat SEC commissioner Timothy Geithner blaming Bush for the financial crisis. I believe he needs a history lesson. The main blame goes back to Jimmy Carter for his failed presidency. I quote from an article in the Investors Business Daily 2002. "In light of Jimmy Carter's recent juvenile assertion that our current president (Bush)is the worst in our history, Investor's Business Daily reminds us just how badly Carter had to screw up to be the one who actually deserves that appellation. Iran used to be a bulwark against communist expansion, and Shah Reza Pahlavi a crucial American ally. But being a liberal, Carter instinctively betrays our friends, just as Pelousy et al. are doing now with Alvaro Uribe in Colombia. The establishment of an Islamic terrorist regime in Iran that demonstrated to the world its ability to attack the US with impunity — Carter's main legacy — set in motion disastrous chains of events that include 9/11 and are still playing out.." This is the reason why e have such a large budget deficit and are spending billions of dollars in the middle east. Thank you Jimmy Carter.

    February 10, 2009 at 4:42 pm |
  2. Steve C.

    WOW, Mr Geithner has no plan? He blames Bush, he was there, Is Geithner still trying to get his Turbo tax program working?
    Market down 300

    February 10, 2009 at 12:43 pm |
  3. Isabel Abreu, Brazil

    as the President Obama said, and only the government that can break the vicious cycle where the loss of employment leads people to spend less money, the which leads to even more layoffs, the people must fight for the
    Package Economic, vehemently, united to the President.

    President Obama, yesterday, you’ve done a really good job.
    Keep up the good job!

    February 10, 2009 at 10:05 am |
  4. Ronald Peoria IL..

    Tax cuts(corporate welfare) will not work to stimulate the economy at this time!! When corporations are bleeding jobs, the tax cuts will have little if any positive affect !! When the economy recovers those job creations from corporate tax cuts will be off shore.

    February 10, 2009 at 9:28 am |
  5. Ralph Argen

    If trust, cooperation and competition are the nutrients of the economic soil, economic growth will occur from either Keynesian or Supply-Side stimulus. Removing the toxins of suspicion, greed and corruption is difficult if the stimulus is pork and gaseous beans. The real stimulus is your Attitude; it’s the American Attitude achieved with diligence through a keen focus that produces thoroughness spurred on with the Discipline to push, to achieve ever-higher Ability. Does the stimulus inspire us to act as leaders or to wait for a bailout? If we’re going to rebuild the marketplace we need authentic stimulus. “Aim above morality. Be not simply good, be good for something.” (Henry David Thoreau) To aim above morally and be good for something requires a competitive marketplace facilitated by cooperation and grounded in trust. Will the bailout bring back the trust needed for the American Attitude? This American Attitude is the exceptionalism that began with the Declaration of independence the Bill if Rights and now President Obama. The stimulus whatever its mix will work only if it awakes and inspires the American Attitude.

    February 10, 2009 at 9:08 am |
  6. brerlou

    Its not a mere coincidence, that declines in our educational ranking in the world correlates with a decline in the quality of our leadership. In third world countries, the poorer the people the more ruthless the regime. A few of these posts reflect a susceptibility to propganda that I wouldn't expect to find in the world's leading nation. Some of the GOP criticisms are at the same level of intellectual analysis as someone who says airplanes can't fly, because they violate the principle of Archimedes. Principles are fine, but we use them to direct our approach to problem solving, not to say, "impossible." Airplanes do fly!

    February 10, 2009 at 8:20 am |
  7. James from Dallas

    Here's an idea, cut the salaries by 60%of ALL of Congress and make them pay for their own healthcare @ market rates you and I pay. Then let's sit back and listen to what ideas they come up with then.The problem is, Congress has the same mentality the greedy CEO's have,"they don't feel our pain" if they did you'd hear some better ideas and you'd probably see some hand holding and more compassion for Americans hurting.

    February 10, 2009 at 8:18 am |
  8. Isabel Abreu, Brazil

    Oops ... the link to the video has problems with this page.

    But ... as the President Obama said, and only the government that can break the vicious cycle where the loss of employment leads people to spend less money, the which leads to even more layoffs, the people must fight for the
    Package Economic, vehemently, united to the President.

    President Obama, yesterday, you've done a really good job.
    Keep up the good job!

    February 10, 2009 at 7:21 am |
  9. Colleen

    We need both immediate and long term solutions, which is what I believe the President is trying to do with this stimulus package. One problem is that we usually only have immediate fixes. If they can eliminate all of the proposals which are truly non related to stimulating the economy, I think this bill will help get us on our way. If anyone thinks this is intended to be the solution to all of our problems, they're not listening. The Bush administrations policies damaged our economy to the extent that this will take years to fix. If President Obama can get us going in the right direction, great.

    February 10, 2009 at 7:12 am |
  10. Jimmy B.

    I think the Presidents stimulus package is necessary. The world, and our nations economy is in such a state of recession, that even Republicans realize this is necessary. With all President Obama is faced with, he is now expected to keep Senator Collins happy, and cater to Republicans in general, just to get the support for plans designed to help us all, for a change ........... J.B.

    February 10, 2009 at 6:08 am |
  11. brerlou

    First stabilize the patient, by any means necessary, even if it means cutting a hole in his throat so he can breathe. (Jobs!), Secondly, the measures that the dumb GOP call pork, (health and education & green technology), are actually more like the hardener you put in the cement to make sure it lasts for the next ten years, rather than one winter. The GOP want these measures removed, because they are already citing the difference between "work" (contracts) and jobs, (private employment.) They think the electorate is dumb, with good reason! Without these measures I cited, we'd just be putting an 800 billion dollar bus on the road, with old bald tyres, and no security. Remember, they, "hope he fails!"

    February 10, 2009 at 5:08 am |
  12. Mercede

    President Obama, please stop making the country more divided with your rhetoric about the republicans.

    Please be honest with american citizens and tell them that you and the Democratic controlled congress are going to pass the stimulus bill – all $1 trillion of it – and you are going to do it on Feb. 16th with or without their approval and/or the republicans' approval, because the truth is: you don't need anyone's approval to pass this bill. You already have the 60 votes you need in the Senate and you have had all the votes you needed in the House all along.

    Your unwillingness to tell americans all of this is causing such division in our country. People don't understand that you are just trying to get them all turned against the republicans for no good reason at all. Sure the republicans don't like the bill, but you know that isn't stopping you from passing it. You know they don't have control of the House and that 3 of their members have sided with you, which gives you control of passing this bill in the Senate too.

    Be presidential, tell the american citizens the truth right away. Otherwise they are going to keep worrying that this bill isn't going to get passed when you know it will!

    February 10, 2009 at 3:17 am |
  13. Jennifer

    I'm a single gal who lives alone with no children, and I already have my college education. The only way the stimulus bill can help me is through a payroll tax cut or federal income tax reductions.

    Since I am not married I don't have another income to count on, and since I don't have children I don't get the earned income credit or all the deductions for that.

    As gas prices climb and the cost of food and everything else escalates it does me no good that Obama is going to give millions to build new ports in Florida or spend money on NASA. I need change that I can live with. I need what those republicans are selling: tax cuts.

    So please, everybody, stop just thinking that because the Democratic congress gave tax cuts to the wealthy the past couple of years that the Senate chose to do so on this bill. These cuts will actually help single people like me who have a job but can't make it on one salary now.

    February 10, 2009 at 3:00 am |
  14. Michael Brown from Atlanta, GA

    we need the tax cuts, the spending and the reform/regulatory/accountability to help turn this thing around. tax cuts for the businesses and people working, like using the remainder of the $350b to have no taxes for 2-3mnths, spending money so that will open up contracts so companies can bid for them, win, and hire people, and reform/accountability to the instituations we gave or forced them to take tarp relief aid that need to sell off the bad assets and free up credit while refinancing current mortgages that are about to go bad.

    February 10, 2009 at 2:43 am |
  15. Mike

    I can not believe that any truly American party would make cuts to education and health care. The Republicans just do not get it – trickle down is a failed approach.
    The banks need to start lending and people need to start spending – but that will not happen if people are not working. That is why the Republican tax refunds do not work – one needs to have a job first. A $500.00 or so tax refund will not buy a car, TV, or stove.
    Face it Repubs. – you lost the election and if you keep stalling this – you will lose the next one too. They are the ones who refuse to be bipartisan.

    February 10, 2009 at 2:38 am |
  16. Tammer

    thanks to everyone effort tax cut mean get 500 spend it in less then a week how about the rest of the year thanx but thanx enough insulting our intelligence !

    February 10, 2009 at 2:24 am |
  17. Angela

    "WE DO NOT NEED REPUBLICANS". They do not represent the people,only greed and hatred. We the people are in control.

    February 10, 2009 at 2:04 am |
  18. jay from louisiana

    The Republicans had eight years to get it right. They helped to get us in this mess, so they need to get on the band wagon and try to get us out of it. It's not the time for the foolishness they are keeping up. People need there jobs and homes. They have forgotten the middle-class and the poor long enough. What God say will be will be.

    February 10, 2009 at 1:54 am |
  19. Vvi

    The Republicans should provide constructive proposal instead of scaring people by saying "stimulus bill will lead to disaster". When we are making "0" money, who cares about tax cut?!

    February 10, 2009 at 1:23 am |
  20. adrian

    It doesn't matter what the President does or doesn't do to most Republicans he is wrong. Most Republicans understand that if he succeeds the Republican Party is all but done.

    February 10, 2009 at 12:41 am |
  21. Steve C.

    I'm a small business owner with sales of $11 million a year with 12 employees. We sell mainly US good international, mainly to oil and gas and mining industry.
    We would like to grow our business, buying more inventory and hire more employee, but tax are so high it's hard to do this.

    One of your ladies guest the one in yellow suite on the show on Feb 9th said said all the small business she has talk with said they does not want tax breaks they are not making profit anyway. This is not what I see

    February 10, 2009 at 12:09 am |
  22. Frank from Detroit

    Republicans say that this is big government spending, and not for the people. They would prefer to give tax cuts that will only directly benefit the employed. They’ve spent so much on failed, unaccounted for, spending. Please give democrats a chance to fix this.

    February 10, 2009 at 12:05 am |
  23. Dottie

    DO you people read what you write. All I hear is blame on the dem's or the repub's. what happened to the american people. that is the major problem, I won, I trump you, shows that there is no concern for the people only for the party

    February 10, 2009 at 12:03 am |
  24. Dottie

    It is tax time a alot of low income families are filing their taxes and getting earned income credit to the tune of thousands of dollars each and they are gonna go out a spend. Do nothing outlandishly stupied by passing a huge spending bill. Get the banking straightened out, help deserving people with their foreclosures and soon the economy will improve. Fight for your PORK later.

    February 10, 2009 at 12:00 am |
  25. Dottie

    Yep, just as Obama said he inherited all this mess. He kept talking about former President Bush. He also made a comment about the Dem's and Repubs not working together and help to cause this problem. He must have a short memory, what has been his title, SENATOR. A party to the problem

    February 9, 2009 at 11:57 pm |
  26. Amy Toro

    THe problem is that we need an immediate solution. The Stimulus Bill will take time. In the meantime, jobs will be lost. THe amount of jobs could be the jobs gained. What did we do? We need to stop the jobs from being lost. If there were no more loss of jobs then a Stimulus Bill would create the needed jobs,

    Let's all hope.

    February 9, 2009 at 11:56 pm |
  27. Frank from Detroit

    Republicans say that this is big government spending, and not for the people. They would prefer to give tax cuts that will only directly benefit the employed. They’ve spent so much on failed, unaccounted for, spending. Give democrats a chance and grow up for goodness sake!!!

    February 9, 2009 at 11:56 pm |
  28. Phillip Roberts

    I was (and STILL am) wondering just WHY it is that the republicans want to cut funding for people in need, the poor, the elderly, and yet they offer "Tax Cuts" to the rich in the hopes that it "trickls down" to the aforementioned? Isn't that a bit Fascist?

    February 9, 2009 at 11:16 pm |
  29. George

    Why the republicans have it wrong! My income is over $200k/year; I pay lots of income taxes, my mother's property taxes and have a job which indirectly creates jobs for others. I started with a Pell Grant while attending a community college. Bottom up is the way to go. We have been doing top down the last 8 years, they just don’t get it.

    February 9, 2009 at 10:57 pm |
  30. Lalita

    Why does President not just explain that in order to have an immediate and sure increase in demand you have to go to government spending. By a tax cut you have to first wait for the money to get in people's hands and then wait to see if they will spend or pay back their debts. And why don't we also explain that tax cut creates the same deficit that the government spending does.

    February 9, 2009 at 10:12 pm |
  31. Clarence Albuquerque

    I missed the press conference but I don't think a tax cut will help much. I don't know how you can get the economy working if the population has faced the reality that spending money you don't have will not make a stable future. The credit that was freely extended a few years back does not give people ownership of what they buy.... they only owe more and more for what is not yet their own... homes, cars, etc...

    February 9, 2009 at 9:41 pm |