Where have we heard this before? Wasn't it Bush II who claimed tax cuts stimulate the economy? Yet splashed all over the headlines are more tax cuts.
President-elect Barack Obama, commencing face to face consultations with congressional leaders Monday, is embracing an unexpectedly large tax cut of up to $300 billion. Obama said the country faces an "extraordinary economic challenge." Besides $500 tax cuts for most workers and $1,000 for couples, the Obama proposal includes more than $100 billion for businesses, an Obama transition official said. The total value of the tax cuts would be significantly higher than had been signaled earlier
A grand total of $300 Billion in cuts and the New York Times nails it:
The economic plan will also include a couple other provisions intended to stir capital investment. The stimulus package signed by Mr. Bush last year included a provision generally allowing businesses to depreciate half of their spending in 2008 on new equipment right away, rather than spread out over the years, reducing their immediate tax burdens. Mr. Obama’s advisers said they planned to build on that, either by extending it to investment in 2009 and 2010 or through some other mechanism.
The Obama plan would also allow businesses to apply net operating losses from last year to offset tax liabilities from prior years, enabling them to claim refunds from the government now in hopes of encouraging capital investment, much as was done in a 2002 economic stimulus plan
Right. The Bush economic plan worked so well, let's do it again?