[snip]WASHINGTON -- President-elect Barack Obama and congressional Democrats are crafting a plan to offer about $300 billion in tax cuts to individuals and businesses, a move aimed at attracting Republican support for an economic-stimulus package and prodding companies to create jobs.
The size of the proposed tax cuts -- which would account for about 40% of a stimulus package that could reach $775 billion over two years -- is greater than many on both sides of the aisle in Congress had anticipated. It may make it easier to win over Republicans who have stressed that any initiative should rely more heavily on tax cuts rather than spending.[/snip]
The rest can be found here-
http://www.foxnews.com/politics/2009/01/04/obama-eyes-billion-tax-cut/Had me more worried when they went into this as preliminary reporting said there were whispers of raising the gas tax to pay for some sort of stimulus package. Seeing no mention of that in the after meeting reporting is a good thing.
Given the good basis that this sort of thing does indeed help the economy the ball is in Obomas court to make this work or screw it up royally. If it's across the board cuts, good. Even if it's only a cut on people making under a certain amount with no raises to those with higher incomes or businesses....still good but not as good. Either would probably do a lot to stimulate the economy. Lower taxes put a consistent flow of money into our pockets, unlike a one time shot of 600 which, while always helpful, isn't going to help long term.
However, if it's lower taxes for low income people but a tax
hike for everyone else ("high" income, corporations, capital gains, small business owners, etc) or a higher gas tax as was whispered pre meeting, he will screw up what could have actually worked. Same if some combination above happens but we see continued massive borrowing or printing of money to pay for ridicules wastes of money such as the trillion or so new new deal that's been talked about. In either case it will blow up right in his face. Higher taxes on the people who give jobs and lend money, will help the economy crash lower by locking up most of the money. If it's simply borrowed or printed to the extents news reports have talked, expect Bush to actually look like a conservative in comparison and it to blow up.
Reporting above leaves me strangely optimistic and worried at the same time. Given his record and ideals, I'm scared he will screw it up or it will get filled with garbage by the time it gets through the house and senate and wont be vetoed. But, I'm optimistic as it's a good plan at it's core provided it isn't screwed up. Could be either very good, or very bad long term.