Second, we are helping small businesses keep their doors open so they can weather this economic storm and create good jobs. Instead of the normal two years, small businesses are now allowed to offset their losses during this downturn against the income they’ve earned over the last five years. And this could provide a record number of refunds for small businesses, which will provide them with the lifeline they need to maintain inventory and pay their workers.
Third, we are helping Americans get the education they need to succeed in a global economy. For years we’ve seen the price of tuition skyrocket at the same time that it became more and more important to earn a college degree. And that’s why we are making college more affordable for every American that needs a hand. That is why we are committed to simplifying the student loan process so more families can get the help they need. And that’s also why our $2,500 tax credit for all four years of college will help us reach a goal that will help our country lead in the 21st century: By 2020, Americans once again will have the highest proportion of college graduates in the world.
Fourth, we are helping more Americans purchase homes that they can afford. Just as we must put an end to the irresponsible lending and borrowing that created the housing bubble, we must restore the home as a source of stability and an anchor of the American Dream. That’s why we’re providing a tax credit of up to $8,000 for first-time home buyers, which will put a home within reach for hardworking Americans who are playing by the rules and making responsible choices. And by the way, there are at least a couple of folks here who have already used that $8,000 credit, and I think it’s wonderful to see that this is already prompting some willingness for people to go ahead and make that first-time purchase where they thought maybe it was out of reach before.
Fifth, we know that tax relief must be joined with fiscal discipline. Americans are making hard choices in their budgets, and we’ve got to tighten our belts in Washington, as well. And that’s why we’ve already identified $2 trillion in deficit reductions over the next decade. And that’s why we’re cutting programs that don’t work, contracts that aren’t fair, and spending that we don’t need.
We’re also doing away with the unnecessary giveaways that have thrown our tax code out of balance. I said this during the campaign, I’m now saying it as President: We need to stop giving tax breaks to companies that stash profits or ship jobs overseas so we can invest in job creation here at home. And we need to end the tax breaks for the wealthiest 2 percent of Americans, so that people like me, who are extraordinarily lucky, are paying the same rates that the wealthiest 2 percent of Americans paid when Bill Clinton was President.