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Econwatch
September 1, 2010 11:57 AM

Report: Obama Considers Tax Cuts to Boost Economy

By
Alex Sundby
Topics
In The News
(Credit: CBS)

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 by President 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.


  • Alex Sundby

    Alex Sundby is an associate news editor for CBSNews.com

Add a Comment See all 17 Comments
by 010sonny September 24, 2010 5:47 PM EDT
From this comment we have a fine example of suppression education effects. None so blind as them that chose not to see. $12.4 Trillion plus two wars and the selling of a portion of our nation through the guise as loan from China. Much ,much, more not enough time to educate your ignorance seek research with open eyes, Smells like you have been bitten by the rabid FOX, Republicans are having a liquidation sale of America. Their buddy Roberts has opened the doors for foreign investments to bid on our politicians, policies, and anything they would like to have and they do not even have to identify themselves, Japan. China, Russia, Iran, Sadie Arabia, come one come all to the Sale of our Democracy..
Reply to this comment
by 010sonny September 16, 2010 3:45 PM EDT
Does this remind you of anything from the past. Reagan?s economics. The first president to send us into over a $ trillion deficit and it has been growing ever since. Trickle down economics has been proven wrong. By the time Busch steps into office we have $ 5.7 trillion deficit following this Reagan economics. Busch gives it it another shot for it to work and leaves office with $ 12.4 trillion deficit? Last 2 years elitist have had $ 180 billion to produce employment. Never happened did it. Now Bone head wants to try it for 10 more years at $700 billion? He says Obama is spending? WOW! Just what is it the FOX urchins, been mixing in your TEA? I realize that republicans and TEABAGGERS want to destroy our education even further than it is but now to pay for all of this they want to destroy your S.S., Medicare and Health.
Only education you are getting now comes from FOX urchins. Stupid is as Stupid does. Looking about me I truly see that definition manifesting itself in this TEA flavored republican mentality and those that support it.
Reply to this comment
by chevyhotrod September 23, 2010 3:50 PM EDT
funny how you blame Republicans for destroying our education system, when the Teachers Unions, who control almost all education facilities within the US are in the back pockets of Democrats.

The education system that is working, for the most part, are private institutions, something the Republicans support and the Democrat oppose.

Stupid is as Stupid does, you can say that again.

One other thing, I never realize that with went from Reagan right to Bush Jr. And when Bush Jr. left office the deficit was $10T, not $12.4.

Just make it up as you go, if it makes you feel better.
by stormerF3 September 15, 2010 3:50 PM EDT
Make up your mind Obama,one day you say tax cuts don't create jobs the next you say tax cuts could create jobs. Your such a wishy washy nitwit I am ashamed for you.
Reply to this comment
by chevyhotrod September 14, 2010 1:50 PM EDT
by lumos1 September 2, 2010 10:38 AM EDT
Nice fox/rush talking points, while we see you fail to address all the other spending over the past 10 years that continues today in every federal budget, that President Obama had nothing to do with!

_______________

The Democrats that took control of congress in Jan. 2007 has increased government spending by 25%.

Any congress at any time can pass laws that could reduce any amount of spending in any program at any time.

The can write a law and the President can sign it. The Democrats have chosen otherwise, to spend more, not less.

These are not talking points, just facts.
Reply to this comment
by chevyhotrod September 14, 2010 1:46 PM EDT
by starving1968-3 September 1, 2010 2:20 PM EDT
Taxes cuts for small businesses - yes.

For multi-billionaires to squirrel away to their offshore accounts - No.

Big difference.

____________________

I didn't realize that is you make $200K a year you are considered a "multi-billionaire".

I guess I am better off than I originally thought.

Why not just let the small business owners keep more of their own money and not tax them in the first place and send the money to Washington so the politicians can dole out the money as they seem fit?
Reply to this comment
by lloydbest1 September 3, 2010 10:23 PM EDT
Tax cuts for small businesses may make sense but it should be noted that the SOLE function of commerce is to facilitate the transfer of goods and services from vendor to customer and remission of payment back to the vendor for those goods and services. Businesses large and small are merely vehicles for that transferrence.

Nowhere is it expressed or implied that profitability is an integral part of that function.

Large corporations who offshore should be taxed heavily for the privilege. Small businesses who can and have demonstrated they put the customer AND employee ahead of the bottom line should be rewarded with tax breaks. Any budget shortfalls resulting from those breaks can be made up by additonal taxes and/or tax surcharges on the bigger organisations.
One of the reasons for our recent economic pratfall was Bush's then Obama's willingness to bail out those firms that were "too big to fail" Anything that's too big to fail is by that definition alone too big to be allowed. Such corporations should be broken up.
Although there are a number of large firms; many Fortune 500 companies who are (somewhat) responsible about their growth practises and exercise (some) restraint, many others; many more perhaps, behave in such an irresponsible fashion they border on the criminal, even with the pizzpoor regulatory apparatus we have now in place.
Though the biggest companies in the land turn over a considerable amount of coin, the smaller and medium sized businesses, because of their sheer numbers, turn over much more. Many will fail anyway, but a tax break for small outfits may mean the difference between just succeeding and just failing. Since ours is still a consumer driven economy, we could do with far fewer failures in the small and local business asector.
Finally...In an earlier paragraph I mentioned profitability as a non issue. That's not so much true as is the often repeated truism that those businesses and corporations who do make an effort to place the customer and the rank-n-file employee ahead of the bottom line generally end up having dedicated employees who will coin money for them.
Reply to this comment
by tsigili September 2, 2010 11:06 AM EDT
More stupid solutions, that will make things worse.....not better.
Reply to this comment
by antiglobal5 September 3, 2010 8:58 AM EDT
how are tax cuts stupid? Also since taxes take money from the rightful owners and then give it to undeserving people who did not earn the money alot of taxes are wrong on principal.
History has shown cutting taxes does help grow an economy. Also we keep hearing that companies are flush with cash, they are just refusing to spend it until they get a clearer picture of what is in store for them as far as taxes go.` If they know they are not going to get hit with tax increases they will then be able to start hiring.
by stormerF3 September 15, 2010 3:54 PM EDT
Why do all bedwetters think keeping more of the money you work for is a bad idea?Maybe the government needs to stop the wasteful spending and borrowing?
by Lifeson2112 September 1, 2010 2:08 PM EDT
Funny, now all the sudden tax cuts DO boost the economy. Hmmm
Reply to this comment
by starving1968-3 September 1, 2010 2:20 PM EDT
Taxes cuts for small businesses - yes.

For multi-billionaires to squirrel away to their offshore accounts - No.

Big difference.
by sjc_1 September 21, 2010 5:09 PM EDT
You NEVER cut taxes during war or an expansion. Now that Bush ignored sub prime and blew a multi trillion dollar hole in the economy, we need them but Bush made us too broke to afford them. Gee thanks W.
by tsigili September 1, 2010 1:46 PM EDT
To put it bluntly......that would be a really stupid move.
Reply to this comment
by tsigili September 1, 2010 1:36 PM EDT
Obama has already spent to the point of bankruptcy. He cannot afford to spend more money. He has to find some other solution, besides more spending.

There are a number of other perfectly viable solutions, that do NOT increase spending.
Reply to this comment
by sjc_1 September 23, 2010 1:09 PM EDT
Bush borrowed $6 trillion and lied about it. He said the deficits were under $300 billion each year. $300 billion times 8 years is $2.4 trillion not $6 trillion. He cooked the books, just like his buddies at Enron.
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