Rate my president

Just over one year ago, millions of Americans flocked to the polls to voice their opinions in one of the most important elections of this generation. In the end, nearly 52 percent of Americans voted for “change.”

Running on the promise of a better America, Barack Obama adopted three main platform goals. The first of these goals was to provide tax relief to working families. Second was the idea of tax relief for new businesses and startups. Last, but not least, was the concept of fair trade.

Looking back on the last year, however, one must wonder what exactly President Obama has done since being elected to the highest office in the land. Yes, he won the Nobel Peace Prize, but what has he really done while in office, particularly with regards to the economy?

This past week, PolitiFact.com published a list of promises made by Obama during the 2008 campaign, and discerned kept promises from broken promises. In order to further analyze the contributions of Obama and his administration thus far, Technician will take an in-depth look at what exactly he has done to improve the economy in his first year in the spotlight as the President of the United States.

Stopping the rapid fall from grace (+)

On January 20, 2009 Obama inherited more than just the keys to the most famous house on Pennsylvania Avenue. In fact, he also acquired the financial crisis, which has seemingly paralyzed members of the Bush Administration and Americans’ wallets, as well. Unemployment rates were near 10 percent. Inflation was at one of the highest that it’s ever been. Not to mention the fact that the financial system - or what was characterized as a system - was completely broken.

Atop the president’s priority list was to soothe American’s fears over an impending depression, like that experienced by previous generations during the roaring ‘20s. A year after his election, it seems as if the president has done exactly what he aspired to do. Home sales, while still below levels they were at previously, are leveling off and rising. The stock market seems to have made a comeback with some of the highest numbers its seen in months.

Create a foreclosure prevention fund (+)

During the election, Obama discussed in great detail the need to create a fund to help homeowners with sub-prime mortgages refinance their loans or sell their homes. At the time, President Obama forecasted that a mere $10 billion would suffice.

However, after months of economic downturn, the president revealed his $75 billion plan, which provides a guarantee of up to approximately $200 billion in capital for Fannie Mae and Freddie Mac and provides refinancing help to four to five million who receive their mortgages through the previously mentioned mortgage loaners.

The president’s plan also provided additional incentives for lenders, while keeping mortgage rates low for millions of middle-class Americans.

More opportunity for entrepreneurs (+)

In March 2009, President Obama announced plans to expand the Small Business Administration. The revitalization of the economy, as revealed by Obama, would come as a result of the success of America’s small business owners and entrepreneurs.

With that being said, the Obama administration announced it would increase the amount of money it would issue to private lenders, thus making loans available under Small Business Administration programs. Prior to Obama’s plan, the federal government had a policy that guaranteed 85 percent for loans at or below $150,000 and up to 75 percent for loans of larger amounts. Under Obama’s plan, however, the government will guarantee up to 90 percent of all loans for a limited time.

Rescuing the failing American banking system (+)

With banks closing left and right when Obama came into office, the president was faced with a series of issues regarding how to go about rescuing the banking system. His solution: a $700 billion bailout, which polarized many in Washington.

With liberals pushing for the nationalization of banks and conservatives pushing to let the banks fail, Obama took the middle road in February 2009, opting for a series of “stress tests,” which demanded that banks imagine the worst possible economic news and the ability of their capital reserves to cover losses.

More than seven months later, the same large institutions that were on the brink of being nationalized are now breathing without their taxpayer respirator. In fact, many of the banks have actually repaid the money received from the Troubled Asset Relief Program (TARP), which has earned taxpayers a profit.

Tax break for business that add jobs (-)

According to statements made by Obama during the campaign, existing business would receive a $3,000 refundable tax credit for each additional full-time employee that they hired. However, this has not been substantiated.

Upon working on the stimulus bill that he sent to Congress, the notion of tax breaks for businesses seemed to get pushed to the wayside. While the plan never really got any significant support from members of Congress, Obama remained optimistic until the tiny part of the bill was cut completely.

Lawmakers in Washington blamed not backing the plan on concerns the credit wasn't enough of an incentive to get companies to hire additional workers and the fear that many companies might take advantage by eliminating a job, only to create it again later to receive a credit.

Elimination of capital gains taxes (-/+)

When someone sells what is deemed an asset for a profit, that margin of profit is referred to as capital gain. Like many things, the IRS collects taxes from you on this gain. Depending on the level of income of the tax filer and the length of the investment, capital gains taxes can vary from one extreme to the other.

In order to promote ingenuity and spur the inception of new start-up businesses, Obama - the candidate - pledged to eliminate all capital gains taxes for small businesses and start-ups. However, when the American Recovery and Reinvestment Act of 2009 was passed by Congress there was a slight compromise.

As of right now, only 50 percent of gains from capital gains taxes can be excluded from investors. The stimulus bill backed by Obama will raise this exclusion rate from 50 percent to 75 percent.