Obama to Propose Permanent Research Tax Credit

cfayahoo

下周第一滴鸡血?

President Barack Obama will ask Congress Wednesday to increase and permanently extend a tax credit for business research as a way of boosting job growth, administration officials said Sunday.


CNBC
The proposal would cost $100 billion over 10 years, and Obama would pay for the plan by closing other corporate tax breaks, said the officials, who spoke on condition of anonymity.

The Obama administration is scrambling for solutions to tackle a 9.6 percent unemployment rate and invigorate an economy whose recovery from the worst recession in 70 years is in danger of stalling, with congressional elections looming.

Obama, who is to lay out this plan and other initiatives in a speech in Cleveland Wednesday, is trying to both create jobs and help his Democrats hang on to control of Congress in Nov. 2 elections, when Republicans are poised to pick up seats and possibly take command of the House.
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U.S. television political talk shows featured debates on tax cut proposals Sunday, the middle of a Labor Day holiday weekend that marks the informal start of the election campaign season.

University of California economics professor Laura Tyson, a member of the president's economic advisory board, said targeted job policies such as a partial payroll tax holiday and permanent tax cuts for research and development should be priorities in the current environment.

"All of us here agree we need targeted policies for jobs and right now the deficit is not a major issue," Tyson told CBS's "Face the Nation" program. "The major issue is a slow economy, lack of jobs ... we really need to get our priorities right and focus on targeted job creation."

'Bumping Along' Vs. 'Flailing'

Growth, which had been fueled by a record $814 billion government stimulus program, has slowed sharply, raising alarm in financial markets the economy was sliding back into recession.

"I think we are in a situation where we are bumping along at a slow rate. There is a lot of downside risk," said Tyson.

The measures that Obama is set to announce could also include extending middle-class tax cuts, investing in clean energy, spending more on infrastructure, and delivering more tax cuts to businesses to encourage hiring.

Republican Senator John McCain told Fox News the Obama administration was "just flailing around" with economic policies that had created uncertainty among businesses and investors.

"The first thing we need to do is extend the tax cuts that are in existence so people have that certainty," said the Arizona senator, referring to tax cuts enacted by President George W. Bush.

"The point is that the Obama Keynesian on steroids has not worked. The economic policies have failed," said McCain, who lost the 2008 presidential election to Obama but predicted a strong showing by Republicans in November because of the struggling economy.

Democratic Party Chairman Tim Kaine defended the Obama -administration's economic record, telling Fox: "The GDP, which was shrinking, is now growing."

But he acknowledged the economy is "not growing fast enough" and said Democrats were focusing on how to help small businesses.

"Let's target the tax credits to middle-class folks and to small businesses, but especially let's target the tax credits to where they will do the most good, where they will have the most likelihood of increasing economic activity," said Kaine.

The White House cautioned Friday that these steps should not be seen as a second stimulus package. Lawmakers are in no mood to approve a big new spending plan that would add to the
fiscal deficit.

Obama will call on Congress to increase to 17 percent from 14 percent one of two credit options available to businesses, the officials said.

catbear

这是和私营大公司做交易： 私营大公司多雇人， 爱拔毛给tax credit。

cfayahoo

那个懂税的说说, from 14% to 17% 是不是SIGNIFCANT? 应该还会有更多鸡血放出来. IN OB, WE TRUST

回复 2# catbear

cfayahoo

one more

The government will roll out a new mortgage aid program on coming Tuesday, this time targeting underwater homeowners who are current on their mortgage payments but at risk of default. Officials say up to 1.5M loans could be modified, but skeptics think the plan is likely to be as ineffective as past efforts.

Diver

Diver

Diver

hhli3

6th-Sense

那个懂税的说说, from 14% to 17% 是不是SIGNIFCANT? 应该还会有更多鸡血放出来. IN OB, WE TRUST ...
cfayahoo 发表于 2010-9-5 17:28

  +3% is huge difference.........you will see its effects if Congr. passes it............
so , the week ahead is "chicken wing" week, we may see open FLAT and Close moderately higher.........

cfayahoo

谢谢 6th sense. the week after next week is OE, maybe congress will pass the bill after OE week,

回复 9# 6th-Sense

cfayahoo

OB 今天讲话

Obama to Announce $50 Billion Infrastructure Job Plan

.S. President Barack Obama will announce on Monday a six-year infrastructure revamp plan with an initial investment of $50 billion to jump-start job creation, a White House official said.



Obama is committed to working with the U.S. Congress to fully fund the program, which also includes a proposed infrastructure bank to leverage private capital, the official said.

Obama is to make the announcement in Milwaukee, where he will make a speech to a labor rally on Monday, the Labor Day holiday that marks the informal start of the election campaign season.

With a jobless rate near 10 percent, Democrats are facing predicted losses in the Nov. 2 congressional elections and the Obama administration is trying to convince voters that Democratic policies can lead the way out of the country's deepest recession in 70 years.

The White House official said the proposed program will include building or rehabilitating roads, railways and runways.

The proposed infrastructure bank "would leverage private and state and local capital to invest in projects that are most critical to our economic progress," a different approach to infrastructure than the traditional way in which allocations are made more by geography and politics, the official said.

Administration officials said he will propose making permanent the business tax credits for research, which the White House projects will cost $100 billion over 10 years and would be paid for by ending some corporate tax breaks.

Other items that could also be talked about Obama are a payroll tax holiday, extending tax cuts for the middle class and increasing money for infrastructure spending and clean energy.


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The Obama administration is scrambling for solutions to a stubbornly high 9.6 percent unemployment rate and invigorate an economy whose recovery from the recession is in danger of stalling.

University of California economics professor Laura Tyson, a member of the president's economic advisory board, said targeted job policies such as a partial payroll tax holiday and permanent tax cuts for research and development should be priorities in the current environment.

"All of us here agree we need targeted policies for jobs and right now the deficit is not a major issue," Tyson told CBS's "Face the Nation" program on Sunday. "The major issue is a slow economy, lack of jobs ... we really need to get our priorities right and focus on targeted job creation ."

The White House says patience will be required.

"It took years to create our economic problems, and it'll take more time than any of us would like to fully repair the damage," said White House communications director Dan Pfeiffer. "There are no silver bullets and anyone who is promising them is not being straight with the American people."

Democrats are facing an angry electorate that could end their one party rule in Washington. Many experts believe Democrats could lose control of the House on Nov. 2 and perhaps even the Senate, which would make it harder for Obama to advance his domestic agenda on issues like climate legislation.

hutong123

谢谢分享

cfayahoo

What Obama May Propose This Week on Jobs,


President Barack Obama will announce a series of proposals this week that he hopes will jump-start the flagging economic recovery and drive the jobless rate down.
Congress has balked at even modest new spending initiatives in recent months and officials say the proposals are likely to be narrowly targeted.

The following is a summary of some tax and spending policies that have been floated by administration and congressional leaders.

TAX POLICY: INDIVIDUAL TAXES

he Bush-era tax cuts for all individuals expire at year-end unless Congress extends them.

Obama has stood firm on his pledge to extend the lower tax rates for what he calls the middle class—individuals making less than $200,000 and couples earning $250,000 and under.

Obama and fellow Democrats say the wealthy are unlikely to spend the extra funds while Republicans say such individuals fuel consumption spending, investment and hiring.

Some Democrats, however, are pushing for an extension of all tax cuts at least for another year while the economy is still on the mend.

PAYROLL TAX HOLIDAY

A version of this break already exists in the Hiring Incentives to Restore Employment Act signed into law in March that gives tax credits to business to hire workers who have been unemployed for eight weeks or longer.

The Obama administration says businesses that qualified for the credits have hired about 5.6 million workers, but the administration has been unable to link hiring directly to the incentive.

A new version could give a break on payroll taxes—payments to Social Security accounts— shared by workers and employers, without the need to hire new workers and extend the time period to use the credits.

Lawmakers would have to work out the accounting so the Social Security trust fund doesn't take the financial hit.

BUSINESS TAX BREAKS

The House of Representatives has passed a $31 billion package that renews for a year corporate tax incentives, including a research and development tax credit and tax credits for biofuel use, that have expired.

Obama has called for permanent extension of the R&D tax credit -- a popular idea among both political parties—in his budget.

Administration officials say Obama will ask Congress Wednesday to increase and permanently extend the research credit at a cost of $100 billion over 10 years.

The so-called tax extenders bill also includes tax breaks for improvements to retail business and for finance companies earning money abroad.

That Obama-backed measure, which is paid for by trimming international tax perks enjoyed by some of the same companies, has stalled in the Senate.

INFRASTRUCTURE: NEW SPENDING

Obama will announce a six-year plan to revamp the United States' aging roads, railways and runways with a $50 billion up-front investment.

The plan includes rebuilding, constructing and maintaining roads and rail lines; rehabilitating or reconstructing runways, and modernizing the air traffic control system.

BUILD AMERICA BONDS

Taxable so-called Build America Bonds (BABs), created in the stimulus program last year, were designed to finance infrastructure projects.

Moves to extend the program beyond December have largely stalled in Congress.

The bonds pay issuers a federal rebate of about 35 percent of interest costs, and led to $122 billion in bond sales by state and local governments since their debut in April of last year.

Obama has proposed making the program permanent and setting the subsidy level at 28 percent, a level the Treasury Department considers revenue neutral.

A recent government report said more than two-thirds of the $34 billion in payments to BABS is offset by higher revenues.

INFRASTRUCTURE BANK

Obama has proposed a grant and lending institution that would be an independent entity within the Transportation Department and would first focus on highway, bridge and waterway projects.

The administration's five-year projection is to capitalize the bank at $25 billion and Obama has sought up to $7 billion in initial funding from Congress.

The infrastructure bank is part of the plan proposed by Obama on Monday.

SMALL BUSINESS HELP

Obama again called for passage of a $20-30 billion bill to invest in banks with assets of less than $10 billion to spur investment in small business.

Republicans have blocked the plan, calling it a waste of taxpayer funds.