Last gasp

7 September 2010 By James Pethokoukis

The president’s plans to spend $50 bln on roads and railways and grant businesses $300 bln of investment tax credits have merit. But they don’t look enough to sway disillusioned executives. And Republicans are in no rush to pass a second stimulus before midterm elections.

This content is for Subscribers only

Context News

President Barack Obama proposed a sixyear plan on Monday to rebuild U.S. infrastructure with an initial $50 billion investment and prepared new business tax cuts.

The infrastructure plan, one of several initiatives Obama is unveiling this week, was immediately criticized by Republicans, who many analysts predict could win control of the House of Representatives in Nov. 2 congressional elections.

An administration official said Obama will propose on Wednesday in Cleveland that businesses be allowed to write off all their new investments in plant and equipment through 2011. The plan would cut business taxes by some $200 billion over two years, the official said. The administration hope is that businesses worried about the sagging U.S. economy will nonetheless want to take advantage of the tax break by going ahead with plans for plant and equipment investments.

Obama will also announce on Wednesday a proposal for the U.S. Congress to increase and permanently extend a tax credit for business research and development. It would cost $100 billion over 10 years.

Email a friend

Please complete the form below.

Required fields *