Monday, January 5, 2009

Obama to Push for $300 Billion in Tax Cuts

I was surprised to find this item in the news today. (here)

President-elect Barack Obama plans to include about $300 billion in tax cuts for workers and businesses in his economic recovery program as he seeks to win over Congressional skeptics worried that he was too focused on government spending, advisers said Sunday.

The legislation Mr. Obama’s team is developing with Congressional Democrats will devote about 40 percent of the cost to tax cuts, including his centerpiece campaign promise to provide credits up to $500 for most workers, costing roughly $150 billion. The package will also include more than $100 billion in tax incentives for businesses to create jobs and invest in equipment or factories.

However, I was not surprised that their weren't any "Tax Cuts Are Bad" op-eds in the New York Times, like they did with Bush. Speaking of those Bush tax-cuts:
Mr. Obama’s advisers said they were still discussing with Congressional leaders the precise plan for phasing out the credit for wealthier Americans. They said no tax increases were included in the plan because it is focused on measures that create jobs. Obama aides have signaled that they will wait to let Mr. Bush’s tax cuts for the wealthiest Americans expire in 2010, rather than try to repeal them right away.

I see this as a good sign that Obama is not completely out of touch on this. His mandate is such that he doesn't have to do this. Tax cuts are a good thing and shows that he can be pragmatic. Now we only have to worry about the spending....

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