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State of the Union: Obama as Robin Hood?

Bob Jordan

President Barack Obama in his State of the Union speech sharpened focus on aiding a middle class that remains economically wounded by the Great Recession.

"Middle-class economics is the idea that this country does best when everyone gets their fair shot, everyone does their fair share, and everyone plays by the same set of rules," Obama said in his address Tuesday night.

But the president wants tax relief for the middle class to come from new taxes on the wealthy – a non-starter with Republicans who gained full control of Congress in the November midterm elections.

Does the stalemate sound familiar? It's the same political battlefield where New Jersey Democrats for five years have sparred with Republican Gov. Chris Christie without gaining Christie's blessing on new taxes.

Democrat Stephen Sweeney, the president of the New Jersey Senate, said Obama is on the right track in Washington and he promised to continue engaging Christie in Trenton on the state's "economic fairness.''

"The best way to create immediate and long-term economic growth is to expand opportunities for working families and the disadvantaged. The wealthy have continued to prosper but the vast majority of people have not,'' Sweeney said.

Conservatives and business groups say the wealthy already pay enough in taxes.

Rep. Tom MacArthur, R-N.J., said Obama in his sixth State of the Union made an unconvincing argument to rebalance the tax bite, "especially when some of those new taxes will hit middle-class families saving for college.''

"I'm concerned that some of what the president discussed will just continue the trend of partisan gridlock and unilateral executive overreach," MacArthur said.

Some highlights of Obama's speech:

•Obama said the nation's finances have become healthy enough so the wealthy can shoulder new taxes, with the revenue to be used to pay for new programs and tax cuts for others. He said it had been a "breakthrough year for America, our economy is growing and creating jobs at the fastest pace since 1999.''

•Additional tax revenue would make community college and child care more affordable under the president's plan. The average savings for a full-time community college student would be $3,800 if Obama's proposal to exempt students from paying tuition for two years is approved, though it's unlikely to happen. The total price tag is estimated at $60 billion over 10 years.

•Obama wants wealthy people and businesses to pay $320 billion more in taxes over the next 10 years. That would pay for $175 billion in tax cuts for low- and middle-income taxpayers. How would the distribution occur? By closing loopholes, Obama said, including tax code provisions "allowing the top 1 percent to avoid paying taxes on their accumulated wealth.''

Rep. Frank Pallone, D-N.J., praised Obama for a "plan to ensure that Americans in the middle class, and those fighting every day to join it, are not left behind by an economy that is finally gaining steam.''

•The White House says nearly 43 million private-sector workers don't get paid sick leave. Obama called for legislation to require companies to provide workers seven days of paid sick leave a year.

•Obama claimed the national economic recovery is humming at a time of "shrinking deficits, bustling industry, and booming energy production.''

Meanwhile, New Jersey's job growth rate in the last year ranks dead last in the continental U.S. The country has more than regained the nearly 9 million jobs that it lost during the recession that lasted from 2007 to 2009. New Jersey has recovered fewer than half of the lost 257,900 jobs.

Christie last year blocked major tax increases on millionaires and businesses sent to him by the Democratic-controlled Legislature. Some $1 billion in new revenue would have been deposited into the pension fund for public workers.

New Jersey Democrats are expected to push again for a millionaires tax in the next budget.

Christie will unveil his proposed state budget next month but made it clear in a speech last week that he will stay the course, saying, "Make no mistake, I will veto any more income tax increases that come before me.''

Michael Symons contributed

Bob Jordan 609-984-4343,

At a glance

$320 billion

The 10-year price tag for Obama's proposed tax increases, aimed at wealthy people and businesses.

$175 billion

Obama also proposes cutting taxes for low- and middle-income taxpayers by this amount over a decade.


Obama wants Congress to pass legislation requiring companies to provide workers seven days of paid sick leave per year.