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The Washington Post reports on a new stimulus plan being considered by the White House.
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.
Click here to read more.
Oldskool // Sep 2, 2010 at 6:34 pm
It’s the run up to the Iraq war resolution all over again, except this time it could do some good. Lay out something bold right before the midterms and then dare the other side to vote against it.
jg bennet // Sep 2, 2010 at 6:35 pm
The New Ronald Reagan!! Yep he is not a lefty left guys and that is why I don’t regret voting for him.
On Aug.13, 1981, President Ronald Reagan, at his modest hideaway in the hills overlooking Santa Barbara, which he dubbed Rancho del Cielo – Heaven’s Ranch – signed into law perhaps the most aggressive tax cut in U.S. history. Friday marked the 29th anniversary of the signing of the Economic Recovery Tax Act of 1981 and should remind us, in a similar time of economic tumult, of better approaches for stimulating the economy and strengthening the American pocketbook. President Obama, take note.
The ERTA was simple in approach but momentous in outcome. Its purpose, as stated, was to amend the tax code “to encourage economic growth through reductions in individual income tax rates, the expensing of depreciable property, incentives for small businesses, and incentives for savings, and for other purposes” ERTA was a 25 percent across-the-board tax cut affecting individual marginal income tax rates, among other reforms. As Andrew Chamberlain for the Tax Foundation once said, the law was a “watershed event in the history of federal taxation.”
What the Gipper understood uncommonly well was that the best place for money to reside was with those who earned it. Those are the same people who will know best how to spend it. In his own words, “Our loyalty lies with little taxpayers, not big spenders. What our critics really believe is that those in Washington know better how to spend your money than you, the people, do. But we’re not going to let them do it, period.”
President Reagan sought to put money back in the hands of the American people through tax cuts.
http://orangepunch.ocregister.com/2010/08/16/obama-take-a-cue-from-reagan-on-stimulus/32411/
oh and what was reagan’s approval rating starting his third year?
flashback…12/04/82
U.S. Jobless Rate Climbs To 10.8%, A Postwar Record. 11.9 Million Out Of Work – The New York Times
Throughout the year [1982] a solid majority of Gallup’s respondents have taken the position that Reaganomics will worsen, rather than improve, their own financial situation. Yet, Gallup consistently has found somewhat more public faith that Reaganomics will help the nation as a whole and even more faith in the president’s program when the question is posed with regard to the long run. Surveys also indicate that the public has more confidence in Reagan than approval ratings of his performance would suggest. While only one third approve of the way he is handling the economy, close to half express some degree of confidence that he will do the right thing with regard to the economy.
Indeed, although 1983 began for Reagan with a 35% job approval rating — the worst of his administration — things started to look better.
http://politheo.com/ronaldreaganpolls.html
jg bennet // Sep 2, 2010 at 7:21 pm
pure political entertainment here, somebody put the work into this
10/19/82
During a White House meeting with Arab leaders, President Reagan turns to the Lebanese foreign minister. “You know”, he says, “your nose looks just like Danny Thomas’s.” The Arabs exchange nervous glances.
http://politheo.com/reagan1982.html
llbroo49 // Sep 2, 2010 at 8:53 pm
I hope the administration has learned their lesson from the Bank bailouts. While it appeared common sense that if you helped the banks with their bad debts, that they would beging lending again, the reality was that banks took that money (along with the almost zero interst rates when borrowing from the Fed) and bought government bonds (banks borrowed at almost 0% and bought US bonds that pay 3%) . There was no requirement (or incentive ) for them to loan money.
The Admininstration must ensure this time that busineses spend at least a portion of the revenues that will not have to go to the Treasury be spent on hiring new employees.
communists-basher // Sep 2, 2010 at 10:04 pm
Hahaha. Scammers Scum. F-ing Socialists can pull a trick like this just to stay in power, just to finish this country off … sure they can. They need llbroo49 to advise President Hussein on economic policy – this way we won’t be different from China’s communist controlled economy.
Sure, give the business money and tell the business what to do with it. Hahahahaha. Didn’t the same f-ing Socialist policies destroy the state of Michigan? Didn’t the same policies made this f-ing Socialist stimulus fail? Hahahahahaha.
communists-basher // Sep 3, 2010 at 1:51 am
This is how Progressive Liberal Socialists (think Democrats) lie to Americans and how they destroy the country:
“Obviously it’s going to be hard to get anything done before the election, but it’s really important for him to try, and to make the case to the American people that he’s trying to do something and the Republicans aren’t letting him,” said Steve Elmendorf, a Democratic strategist.
Hahahahhahahahahahahahahahahaha. “… to make the case that he is trying to do something ….”
F-k Obama, seriously.
sinz54 // Sep 3, 2010 at 11:15 am
Among the options are a temporary payroll tax holiday
Gee, I had suggested that over a year ago. So did other conservatives.
But Obama’s liberal supporters insisted that tax cuts were not the way to stimulate the economy–we needed direct Federal spending instead.
So what does Obama come up with now? Payroll tax cuts.
Obama is getting used to the idea of Boehner as House Speaker.
Rabiner // Sep 3, 2010 at 5:04 pm
Sinz54:
Payroll tax cuts were already in the original stimulus. Please try again.
ltoro1 // Sep 4, 2010 at 11:24 pm
Rabiner, are you referring to ARRA as it was passed by Congress and signed by the President? That contained the “Making Work Pay” tax credit, not a payroll tax (Social Security and Medicare) cut.
Obama Tax Cuts // Sep 7, 2010 at 10:00 am
Are they really cuts if we still have to pay them?…
Is Obama for real?…