• News
  • Celebrities
  • Finance
  • Crypto
  • Travel
  • Entertainment
  • Health
  • Others

How Will Obama Pay for His New Tax Breaks for Businesses?

The Obama administration is this week proposing a series of expensive tax breaks for businesses as part of a larger effort to create new jobs: $100 billion to make permanent a research and development tax credit and $200 billion to let companies to deduct the full cost of the capital investment next year.

Obama said that he and Congressional leaders will find a way to make the measures deficit-neutral. But where will the $300 billion come from? In The Washington Post, Anne Kornblut and Lori Montgomery write: “It would be paid for by closing other corporate tax loopholes, said the official, speaking on condition of anonymity because the policy has not yet been unveiled.”

But closing loopholes on big, multinational corporations will pose a number of problems. First of all, finding $300 billion in tax increases itself will pose a challenge — many of the easy fixes are already gone, used to fund other priorities. Then, even if Democrats find a way to make the bill deficit-neutral, groups like the Chamber of Commerce might decide to object to it, and might lobby against it, since it raises taxes on big businesses. So too might moderate Senate Republicans, who have objected to the small-business bill largely on the grounds that it raises taxes for a small number of companies. Moreover, Republicans will likely oppose the proposal for just shifting the tax burden around — I can imagine Republicans arguing that the bill does nothing other than pick winners and losers.

Indeed, Republicans have already opposed Obama’s proposal. Senate Minority Leader Mitch McConnell (Ky.), for one, released this statement: “After the administration pledged that a trillion dollars in borrowed stimulus money would create 4 million jobs and keep the unemployment rate under 8 percent, their latest plan for another stimulus should be met with justifiable skepticism. After failing to deliver on their economic promises for more than 18 months, the administration wants to do it again — this time with higher taxes for even more new spending.

“Americans are rightly skeptical about Washington Democrats asking for more of their money — and their patience; after all, they’re still looking for the ‘shovel-ready’ jobs they were promised more than a year ago. A last-minute, cobbled-together stimulus bill with more than $50 billion in new tax hikes will not reverse the complete lack of confidence Americans have in Washington Democrats’ ability to help this economy.”

Discussion & Comments (0)

    Recent Articles

    • Things You Should Know about North America

      Things You Should Know about North America

      Get to know more about North America.

    • Eurovision 2010 Paula Seling Unpredictable Contest

      Eurovision 2010 Paula Seling Unpredictable Contest

      Paula Seling's experience on the Eurovision stage led her to declare that "Eurovision is an unpredictable contest". Which may explain the success of the young Lena from Germany, about whom the predictions before the event did not offer much chances for victory.

    • VIPRow.me - The Best Sports Streaming Website Today

      VIPRow.me - The Best Sports Streaming Website Today

      Have you ever contemplated creating a user-friendly site dedicated to sports-related free live streaming channels?

    • Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      XNXUBD 2022 Nvidia users are able to watch thousands of videos and other contents online. XNXUBD 2022 Nvidia New is a piece of software that enables people to watch videos online without having to pay for memberships. On a graphics card, the XNXubd also provides some of the best gaming and virtual reality experiences.

    • Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      A new edition of the Video Editor Apk for xVideostudio.Video Studio has all the latest features, including support for multiple video download formats in HD, FHD, and even 4K resolutions.

    • 9 Best Lotion For Masturbation - Popular Choice For 2022

      9 Best Lotion For Masturbation - Popular Choice For 2022

      Masturbation is a common activity for men and women. It's a natural and risk-free way to explore your body, experience pleasure, and release sexual tension.

    • Reasons Why You Need To Stop Watching Movies From Sflix

      Reasons Why You Need To Stop Watching Movies From Sflix

      Without having to sign up or pay anything, you can watch movies online for free with SFlix. It has more than 10,000 movies and television shows.

    • Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Collins (born May 11, 1997) is a rapper from the United States. Leray started publishing songs to SoundCloud in 2014, and in 2018 she released her breakthrough track "Huddy" as well as her first mixtape, Everythingcoz.

    • Listen And Download Music On MyFreeMP3 For Free

      Listen And Download Music On MyFreeMP3 For Free

      Are you in a bind and looking for a place to obtain free mp3 songs? Never again will you need to bother, since this article has everything necessary to obtain your solution. Download free music from MyfreeMP3.com, one of the world's most popular websites.