Wednesday, September 01, 2010

Obama Considering Tax Cuts to Boost Economy

Earlier today new reports emerged predicting that the Obama administration will propose a set of new cuts to Congress. These tax incentives are said to be aimed at helping small business owners to help with the country’s ongoing unemployment problem.

CBS News reports:

On the morning after President Obama told Americans in a primetime address from the Oval Office on Iraq that getting the economy moving again was his "central responsibility as president," The Wall Street Journal ($) reported the administration is considering tax cuts to give the economy a boost.

Unnamed sources tell the newspaper that Mr. Obama's economic team might ask Congress for additional tax cuts for small businesses in addition to the $30 billion of similar cuts awaiting a vote in the Senate.

The Journal reports there's not a clear view of what kinds of small businesses would benefit from the yet-to-be-proposed cuts or how much revenue the government would lose.

The administration might also propose a payroll tax cut for businesses and individuals, the sources told the newspaper. Tax cuts passed during the president of George W. Bush are scheduled to expire at the end of the year, which would make income taxes rise.

Whether any major proposal will receive congressional approval between now and the pivotal mid-term elections is uncertain. The House and the Senate aren't scheduled to convene again until Sept. 13. Democratic aides on Capitol Hill told the newspaper that there's not much of a chance for any immediate action with the party's majorities at stake.

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