Obama Plans for $300 Billion in Tax Cuts
The Wall Street Journal is reporting that Obama is planning to cut taxes $300 billion for individuals and businesses.
President-elect Barack Obama and congressional Democrats are crafting a plan to offer about $300 billion of tax cuts to individuals and businesses…which would account for about 40% of a stimulus package that could reach $775 billion over two years.
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.
If the tax cut goes through it will result in more tax cuts in two years than George W. Bush’s tax cuts in 2001 that resulted in $174 billion in tax cuts. That is part of the reason why such a proposal is so surprising. It also shows a willingness of Obama to shift more to the middle and compromise with Republicans in congress.
The goal would be to put more money in the pockets of consumers and revive consumer spending. However, since economists agree that the last stimulus checks were ineffective, there is a risk that people will save or pay down debt with their extra dollars which would do little good in reviving the economy.
If the economic crisis is not enough to deal with, check out this list of midnight regulations that Bush is in the progress of passing or has already passed in the eleventh hour. A few notable regulations include “Federally Funded Institutions Could Turn Down Abortion Request for Moral or Religious Reasons”, “EPA Lowers Air Quality Standards for Lead”,”EPA Lets Factory Farms Decide If They Need A Permit to Discharge Animal Waste into Waterways”, and “EPA May Allow Certain Hazardous Waste to be Used as Fuel”.
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