OpenCongress Blog

Blog Feed Comments Feed More RSS Feeds

Obama Readying Massive Tax Cut Package?

September 2, 2010 - by Donny Shaw

Remember that in-the-works Obama jobs proposal I wrote about the other day? Given that deficit hawks in the Senate have recently forced the Democrats to pare a $123 billion jobs bill back to a $33 billion unemployment insurance bill (H.R.4213), and that they have been blocking a $30 billion small business jobs bill (H.R. 5297) for over a month, I expected this new proposal to be pretty mild. But according to a report out tonight from Lori Montgomery at the Washington Post, the bill that the White House is preparing to unveil may cost the government as much as $400 billion in lost revenue:

With the recovery faltering less than two months before the November congressional elections, President Obama’s economic team is considering another big dose of stimulus in the form of tax breaks for businesses – potentially worth hundreds of billions of dollars, according to two people familiar with the talks.

Among the options are a temporary payroll tax holiday and a permanent extension of the research and development tax credit, say people familiar with the talks who spoke on the condition of anonymity in order to describe private deliberations.

Permanently extending the research credit would cost roughly $100 billion over the next decade, tax experts said. And depending on its form and duration, a payroll tax holiday could let businesses keep more than $300 billion they would otherwise owe the Treasury.

While significantly less than last year’s $814 billion stimulus package, both ideas would be far more dramatic than anything the White House had been expected to propose.

Annie Lowrey at the Washington Independent points us to a recent CBO report on various stimulus measures and their effects on GDP and employment. And while a payroll tax holiday isn’t as stimulative as spending measures like unemployment insurance and infrastructure investment, as far tax-side measures go, it was found to be the most stimulative form of cut.

Like this post? Stay in touch by following us on Twitter, joining us on Facebook, or by Subscribing with RSS.
 

Comments

  • beenblue 09/02/2010 6:55pm

    Deficit Hawk, that`s a very accurate and descriptive term, as the Hawk is a bird of prey, attacking and eating non-predatory animals below it. Where were these hawks while NERO played his fiddle for eight years, running the country into the ground, and creating enemy`s the world over and ruining American credibility in the eyes of the world. And above all reason to the logical mind, why is Obama acting like the victim of a bad poker game. The Dem`s are the majority, and Obama is a war time President with executive powers, conceding every possible win to a compromise to the opposition, he`s acting like a ambulance chasing lawyer, and always settling out of court. Folks this is bad acting, and that`s all this is, and both sides are playing us as fools. If we don`t wake up, we deserve the government we get.

  • deborahg6 09/03/2010 6:07am

    “the bill that the White House is preparing to unveil may cost the government as much as $400 billion in lost revenue”…you mean, it may give the tax payer and small business back their own money so they can create more tax revenues? Perhaps, letting the American people create jobs with their own creativity, hard work, and innovation is such a new concept? The shock. The horror. What would we do without government dependence and intervention? Uh, we just may come through on the economy, that’s what!

  • Comm_reply
    twistfinger 09/03/2010 2:18pm

    Have you not seen any studies that show that you can’t just say “tax cuts cause economic recovery?” Supply side economics didn’t bring any more growth or income to the lower classes in the 1980s or in the 2000s. So you’re a stupid idiot and I’m a genius.

  • Comm_reply
    beenblue 09/03/2010 4:13pm

    Dear twisty, calling someone stupid does not compel them to consider your point of view, it only begins a conversation with an argument, and the person is left in the position of being equally offensive. We are being systematically pitted against one another, so that the real rulers behind the scenes remain hidden. If you want to teach somebody, you don`t begin by calling them stupid, because no one is truly stupid, they just don`t understand is all! And yes your a genius, but your not alone.

  • Comm_reply
    beenblue 09/03/2010 4:22pm

    P.S. STUPID IDIOT IS REDUNDANT.

  • Comm_reply
    twistfinger 09/03/2010 5:19pm

    I was just kidding about being a genius and him being stupid. I hope he gets that if he reads it. As a matter of fact, as I was walking the track at the gym about an hour ago that this is probably one of the devisive subjects that keep us apart. I’ve read reports of how the Laffer curve is crap and that lowering taxes doesn’t really generate the revenue and stimulate the economy. But I realize that I actually don’t have a clue about how the economy works and that I’ve only read conclusions that other people came up with and I haven’t done any work toward figuring out the answer. So all I’m really doing is carrying somebody else’s point of view which means I’m not actually smart.

    But the same goes for most of us, I think. We just parrot the slogans we think are true for reasons we probably don’t acknowledge ourselves while the ones running things do whatever they want while we watch from our armchairs. :D

  • Comm_reply
    beenblue 09/03/2010 5:53pm

    THAT MAKES YOU PRETTY SMART

  • deborahg6 09/03/2010 6:10am

    …and let’s not kid ourselves. This is about buying votes in November. We all knew this was coming. Why else do you think the President mentioned the “middle class” right smack dab in the middle of his speech on the end of the war in Irag?

  • beenblue 09/03/2010 5:51pm

    I HAD TO RETURN TO THE COMMENT SECTION TO LEAVE THIS THOUGHT POSTED; EMOTION BASED POLITICS ARE ILLOGICAL BECAUSE THEY ARE FUELED BY PASSION, AND ALL PASSION EXAGGERATES. OUR INTELLECTUAL LEVEL WILL REMAIN STUNTED AND CONFUSING, UNTIL OUR CAPACITY FOR RECEIVING AND ACCEPTING CERTAIN TRUTHS ARE RECOGNIZED. HOW ARE WE GOING TO FIND THE TRUTH, IF WE DON`T FIRST ACKNOWLEDGE THE ERRORS THAT SUPPORT OUR OPINIONS,AND ALL OPINIONS HAVE A VESTED INTEREST. THE WORLD IS CONFUSING AND THAT`S INTENTIONAL. IT`S AN ATTACK ON YOUR EMOTIONS, BASED IN FEAR TO KEEP YOU IN A VICTIMS STATE OF MIND, FEELING HELPLESS AND ALONE. ALL YOUR CURRENT PROBLEMS LEAD TO THE DOOR STEPS OF WASHINGTON, AND WASHINGTON IS RUN BY WALL STREET AND K STREET AND THE CENTRAL BANK. TAKE A DAY OFF FROM FEAR AND ANGER, AND REALIZE YOUR NEIGHBOR IS NOT YOUR ENEMY. BEHIND THE SCENES THE REAL POWER WHO USES AND OWNS THE MEDIA HAS PRESENTED AN EXTERNAL AND INTERNAL THREAT THAT`S BEEN CREATED TO FEED YOU A DIET OF FEAR AND ANGER.

  • Comm_reply
    beenblue 09/03/2010 6:14pm

    THEIR IS NO OBJECTIVE MEDIA LEFT, ALL THEY PRESENT IS THE VIEWS OF THE PEOPLE WHO RUN THEM AND OWN THEM,AND THEY WANT TO CONTROL YOU, IT`S ALL BULL SH$#T !!! IT`S THE GREATEST FICTION EVER TOLD LIVE 24/7, THEY USE WORDS LIKE OUR RIGHTS, FREEDOM, LIBERTY, GOD , AND ALL THE WHILE WE LOOSE MORE RIGHTS, LIBERTY AND FREEDOM AND THE RIGHT TO CHOOSE FREEDOM OF RELIGION. ALL THE MEDIA AND POLITICS PRESENTS IS US AGAINST THEM, WHEN IT`S TRULY THEM AGAINST US.

  • KyleAbbott 09/04/2010 9:32am

    Is this Obama trying to moving to the center in preparation for not just a wave, but a tsunami, in November? I think so.

  • Abaratarrr 09/04/2010 7:26pm

    again more money for the rich and nothing for the unemployed. Why is Obama acting like a republican?

  • Moderated Comment

  • cooperbry 09/07/2010 1:53am

    We need the government to stop helping. All government does is take from you and me. That’s not productive!

Due to the archiving of this blog, comment posting has been disabled.