Official: Obama to back more business tax breaks

WASHINGTON (AP) — President Barack Obama will call on Congress to pass new tax breaks that would allow businesses to write off 100 percent of their new capital investments through 2011, the latest in a series of proposals the White House is rolling out in hopes of showing action on the economy ahead of the November elections.

An administration official said the tax breaks would save businesses $200 billion over two years, allowing companies to have more cash on hand. The president will outline the proposal during a speech on the economy in Cleveland Wednesday.

Amid an uptick in unemployment to 9.6 percent, and polls showing that the November election could be dismal for Democrats, Obama has promised to propose new steps to stimulate the economy. In addition to the business investment tax breaks, he will also call for a $50 billion infrastructure investment and a permanent expansion of research and development tax credits for companies.

The proposals would require congressional approval, which is highly uncertain given Washington’s partisan atmosphere. With the public worried about adding to the mounting federal deficits, and Republicans saying spending is out of control, even many Democratic lawmakers are reluctant to approve new spending so close to the midterm elections.

Even if legislators could pass some of the proposals in the short window between their return to Capitol Hill in mid-September and the elections, it’s unlikely the efforts would significantly stimulate the economy by November.

Several million people and 1.5 million businesses would benefit from the tax breaks, said the administration official, who spoke on the condition of anonymity because the formal announcement has not been made.

The official estimated the ultimate cost to taxpayers over 10 years would be $30 billion, with most of the money lost in tax revenue being recouped as the economy strengthens.

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Comments » 2

oldoldtimer writes:

Capitol investments creates very few jobs, Usually the equipment bought displaces and eliminates jobs. Obama is doing every thing he can to fool the people. He does not want to create jobs. He is hoping to make the people revolt so he can declare martial law. You weak minded can believe his preaching but for me, I am over it. He is nothing but a liar who has degraded the honor of the presidency. He is willing to destroy us in order to achieve his dream of Socialism. Every proposal he has made only helps his union supporters. How many people know his administration is blocking investigation of SEIU breaking campaign finance laws? Federal Election Comission is refusing to audit SEIU's violations and contributions. SEIU broke the law by setting contribution quotas for each office. This made contributions mandatory which is against the law.
Another of Obamas stimulus for highways and railroads only helps union labor since these are 95% union jobs. Repair 4000 miles of railroad. Sounds like Amtrack gets that one since all other RR do their own infrastructure. They are required to by Federal mandate. The highways. Want to bet most of the money would go to Democrat progressive states. The ones with the highest debt from over spending. Am I the only one that has notice that Obama has little to do with Republican states? He treats them as though they do not exist and are not part of HIS United States. Well the exception is to file law suits against them and to take sides with foreighn gov'ts against them.

oldoldtimer writes:

in response to stinkysmurf13#523279:

(This comment was removed by the site staff.)

Sorry you are so deluded you can not see through the thin veil. Obama has done NOTHING to help the people. Most has gone to unions and special interests. Deficit spending devalues our money so we get less for it(grocery prices are up 20% in the last 2 months). More taxes reduces the money we do have to spend( 1 Jan 2011 my withholding will increase over $200 per month just to pay the additional taxes) . So you tell me what he is doing to help the 'people'. Do you really believe his speeches? Now I understand how an unknown got elected. With no record it was all what he said which turned out to be all lies. With the media attacks and Obamas hate Bush speeches people were convinced they were replacing the devil with an angel. The only problem is the angel turned out to not be an angel after all. I did not like Bush and I never voted for him(my mistake) but I would take him any day over Obama. At least I know Bush's background completely(the most completely investigated POTUS in history). Where is Obamas college transcripts? I had to grant access to mine to get a job so why not him? What is he hiding? Bush had to reveal his. Makes me think Obama has a bought degree and something to hide. Did he go to college as a foreign exchange student? Maybe that is what he is hiding.

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