Barack Obama is serious about getting the economy moving again, and the inclusion of tax cuts in the stimulous plan makes sense.
Aiming to foster bipartisan support for his record-setting economic stimulus, President-elect Obama plans to propose huge tax cuts for businesses and middle-class workers that will total about 40 percent of the package, or up to $310 billion, congressional officials said.
The revelation is part of an intricately orchestrated roll-out of the plan that includes an appearance by Obama on Capitol Hill on Monday and a major speech about the economy later in the week.
Obama plans to ask Congress for a stimulus package of $675 billion to $775 billion, so the planned tax cuts will total about $270 billion to $310 billion, the officials said.
Obama strategists say he wants to get 80 or more votes in the 100-member Senate, and the emphasis on tax cuts is a way to defuse conservative criticism and enlist Republican support.
But officials say the tax cuts will be based on historical and empirical evidence of what works, not ideology. Rather, the targeted tax cuts will be designed to stimulate job growth in the private sector and help middle class families, the officials said.
For families, the tax cuts include the $500 “Making Work Pay” payroll tax credit Obama proposed during the campaign.
For businesses, the tax cuts would include breaks for small employers and a “new jobs credit.”
If he can get this through quickly with bi-partisan support, we have a much better chance of avoiding a complete meltdown.
