Whoa boy, get ready for the left’s head to really explode.
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, and may make it easier to win over Republicans who have stressed that any initiative should rely relatively heavily on tax cuts rather than spending.
President-elect Barack Obama and congressional Democrats are crafting a plan to offer as much as $310 billion of tax cuts.
The Obama tax-cut proposals, if enacted, could pack more punch in two years than either of President George W. Bush’s tax cuts did in their first two years. Mr. Bush’s 10-year, $1.35 trillion tax cut of 2001, considered the largest in history, contained $174 billion of cuts during its first two full years, according to Congress’s Joint Committee on Taxation. The second-largest tax cut — the 10-year, $350 billion package engineered by Mr. Bush’s in 2003 — contained $231 billion in 2004 and 2005.
The largest piece of the overall tax relief would involve cuts for people who pay income taxes or who claim the earned-income credit. It would serve as a down payment on the “Making Work Pay” proposal Mr. Obama outlined during his election campaign, providing a credit to offset Social Security and Medicare payroll taxes of $500 per individual or $1,000 per family.
On the campaign trail, Mr. Obama said he would phase out a similar tax-credit proposal at around $200,000 per household, but aides said they haven’t settled on an income cap for the latest proposal. This part of the plan is similar to a bipartisan initiative launched in early 2008, which sent out checks worth $131 billion.
As Scott has written about extensively, Obama can now see the reality of the world and is now not only copying President Bush’s policies he is going further then Bush with this tax cut.
I’m telling ya, while it was a sad day seeing this inexperienced political tool get elected President at least we get to watch as the drama unfolds within his own party.
More here.
See author page
Those who claim the ‘earned income credit’ already get back thousands of dollars more than they pay in. I see the rich getting the gold mine and the working class getting the shaft. Nothing new for a democrat administration. Now that GWB is on the way out I received information today that the OMB is in the process of taking away, or making deep cuts in medical care (Tri-Care for life) for those who served their country. Another not a shock move by the democrats. As one of the working class slobs for the past 50 years I have never received a tax cut from a democrat but have received a lot of tax and fee increases. I think the woman who is expecting Hussein O to pay her house payment and put gas in her car had better get back on the street and back on her back if she likes to eat. Either way she chooses she will get screwed.
i really hope that we dont end up broken as a nation and as a “people”. obama cannot handle this mess and he will only make it bigger.
From what I have heard about obama’s “tax cut” is that it won’t be in the form of a rebate. It just means from paycheck to paycheck you will pay a little less in the way of tax. If so, it’s not much of a way to boost the economy.