Obama to propose $310 Billion Tax Cut for businesses and middle-class workers

[Perky]

Politico.com Breaking News:
-----------------------------------------------------

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.



For more information... http://www.politico.com

[BeyondGeography]

1. And the top 1% shudders

for surely their time to pay up will come; this guarantees it.

Fantastic.

[mucifer]

2. I'm not sure if you are being sarcastic, but in the article it is stated it is NOT for

the top 1%.

[babylonsister]

11. That's why they're shuddering. nt

[EconomicLiberal]

3. The Top 1% will never have to pay up.

We were duped by Obama, let's face it. He may be more conservative economically than Clinton..

[Thrill]

5. Oh they will pay up. Especially when the Bush Tax Cuts expire.

Bet that.

[BeyondGeography]

6. The Bush tax cuts will have to be rolled back

handing over $310 billion to business and the middle class is not only good policy, it provides him the political cover he needs to do the right thing. All it takes is a little patience. You'll see.

[FrenchieCat]

8. They will be paying as soon as the Bush tax cuts expire.

and as far as being conservative, 340 Billion in Tax cuts, with another 400 Billion for other stimuli, doesn't sound soooo "conservative" to me.

So far, he's doing what he promised he would.
He never said he would repeal rather than let Expire the Bush tax cuts,
only that this is how he would pay for the Middle Class Tax cut, which were his Campaign centerpiece.
Even the rich are somewhat hurting right now,
so waiting till the Bush cuts expire in 2010 is soon enough.
There's much on Obama's plate....and he doesn't need to be
slowed down repealing something that is about to expire....especially something that
he'd have to spend some of his political capital, and fight Republicans for.
There's so much for him to do, and so choosing his battles wisely is highly recommended.

You may have been duped. I'm doing fine, thank you.

[bluestateguy]

4. This is why it is smart to simply let the tax cuts for the rich simply expire

Clinton's 1993 budget included a tax increase for the rich. Republicans demagogued it to death and it passed by only one vote. A lot of Democrats who voted for it in 1993 lost the next year.

By simply letting the tax cuts for the rich expire, no roll call vote is taken, and nobody has to dirty their hands by voting for a tax increase---which would otherwise be distorted and demagogued in 30 second ads into God only knows what.

If the package is big on tax cuts for working people, Republicans will be hard pressed into framing the package as a tax increase and Obama will get the votes he needs from Blue state Republicans to clear cloture in the Senate.

[democrattotheend]

9. I agree. It's smart strategy

Plus, there may be some truth to the idea that raising taxes on anyone during a recession is a bad idea. My parents have friends who are probably in the top 10% if not the top 5% and they are cutting back on spending too...that may be good for the environment, but it's bad for the economy, because the less people spend, the worse businesses do and the more people lose their jobs.

[firedupdem]

7. This is great!

"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.”



Very good! Let's get the ball rolling!

[democrattotheend]

10. I like the sound of that

Want more details, but so far the package looks pretty good. If he's designing it to get 80 votes hopefully it won't have too much trouble passing. I'm sure there are going to be details we don't like and details others don't like but the overall premise of the package looks good and so far I'm willing to swallow a few bitter pills to get it passed. People of all political stripes are struggling and they are looking to Obama to help...even my libertarian aunt said she hopes he can do something to turn the economy around (although I didn't ask her if she'd vote for his re-election if he does).

[Thrill]

12. How does that tax cut work?

[FrenchieCat]

13. This is what I've found so far........of course this isn't finalized as of yet.....

The largest piece of tax relief in the new plan would involve cuts for people who pay income taxes or who claim the earned-income credit, a refund designed to lessen the impact of payroll taxes on low- and moderate-income workers. This component would serve as a down payment on the "Making Work Pay" proposal Mr. Obama outlined during his election campaign, giving a credit of $500 per individual or $1,000 per family.

On the campaign trail, Mr. Obama said he would phase out a similar tax-credit proposal at around $200,000 per household, but aides said they haven't settled on an income cap for the latest proposal. This part of the plan is similar to a bipartisan initiative launched in early 2008, which sent out checks worth $131 billion.

Economists of all political stripes widely agree the checks sent out last spring were ineffective in stemming the economic slide, partly because many strapped consumers paid bills or saved the cash rather than spend it. But Obama aides wanted a provision that could get money into consumers' hands fast, and hope they will be persuaded to spend money this time if the credit is made a permanent feature of the tax code.

As for the business tax package, a key provision would allow companies to write off huge losses incurred last year, as well as any losses from 2009, to retroactively reduce tax bills dating back five years. Obama aides note that businesses would have been able to claim most of the tax write-offs on future tax returns, and the proposal simply accelerates those write-offs to make them available in the current tax season, when a lack of available credit is leaving many companies short of cash.

A second provision would entice firms to plow that money back into new investment. The write-offs would be retroactive to expenditures made as of Jan. 1, 2009, to ensure that companies don't sit on their money until after Congress passes the measure.

Another element would offer a one-year tax credit for companies that make new hires or forgo layoffs, which could be worth $40 billion to $50 billion. And the Obama plan also would allow small businesses to write off a broad range expenditures worth up to $250,000 in 2009 and 2010. Currently, the limit is $175,000.
http://online.wsj.com/article/SB123111279694652423.html?mod=special_page_campaign2008_mostpop

[TacticalPeek]

17. "but aides said they haven't settled on an income cap for the latest proposal"

from your link:

On the campaign trail, Mr. Obama said he would phase out a similar tax-credit proposal at around $200,000 per household, but aides said they haven't settled on an income cap for the latest proposal.

Has anyone found any other current reporting on this?

And is the info being reported apparently through targeted 'leaks' available from Team Obama directly anywhere?


:shrug:

[Cash_thatswhatiwant]

14. GOOD I VOTED FOR HIM NOW I WANT MY CHECK IN THE MAIL.

JK! ;) This is a great idea.

[Yavin4]

15. This Is A Fantastic Idea, Economically and Politically

Economically, this will help the middle class a great deal, and it may even slow down the foreclosures. This puts more money in the hands of the middle class, who will probably use it to pay back their debts, which in turn will do more to shore up the banking system.

Politically, it's bullet proof from Republican attacks. They cannot attack tax cuts. This is the kind of smart economic and political thinking that may keep the Dems in the majority for years to come.

[EconomicLiberal]

16. "Politically, it's bullet proof from Republican attacks. They cannot attack tax cuts. "

BS. They can and they will attack this tax cut plan. They will accuse the tax cut proposal of not being deep enough or large enough. Bush's tax cut proposal in 2000 was $1.3 trillion. This doesn't come even close to what the Rethugs would like.

And besides, who gives a shit what they like? Could you refresh my memory... which party won this election? Which party is barely clinging onto 41 seats in the Senate?