Obama to Propose Ideas to Increase Economic Growth, Including Tax Cuts
By Cheryl Bolen
Publication Date: 08/31/2010
President Obama Aug. 30 announced that he will propose new ideas in the coming days and weeks intended to spur economic growth in the United States, revolving around tax cuts and investments in infrastructure and clean energy.
The president and his economic team met at the White House Aug. 30 to go over different ideas and proposals that have been under development for many months and some of which are new, said White House spokesman Robert Gibbs.
Obama addressed reporters in the Rose Garden on his first day back to work following his summer vacation. Congress is currently in recess.
“As Congress prepares to return to session, my economic team is hard at work in identifying additional measures that could make a difference in both promoting growth and hiring in the short term, and increasing our economy's competitiveness in the long term,” Obama said.
Tax Cuts for Middle Class Cited
The president pointed to steps such as extending the tax cuts for the middle class that are set to expire this year; redoubling investment in clean energy and research and development; rebuilding more infrastructure for the future; and adding tax cuts to encourage businesses to put their capital to work creating jobs in the United States.
The president said he will address these proposals in further detail in the days and weeks to come.
Gibbs explained that the president will outline a series of ideas in the next several weeks, some of which are stuck in Congress and some of which are being worked through the president's economic team. They will be targeted measures designed to spur economic recovery and create an environment in which the private sector is hiring, he said.
These will not be proposals on the scale of the $787 billion American Recovery and Reinvestment Act (Pub. L. No. 111-5) passed last year, but smaller steps aimed at helping businesses, Gibbs said.
Obama Makes Pitch for Small Business Bill
The president also said that Congress's first order of business when it returns to work should be passage of pending small business legislation (H.R. 5297).
The bill currently before Congress would help small business owners by cutting taxes and making available more loans, Obama said. It would help businesses get the credit they need and eliminate capital gains taxes on key investments so they have more incentive to invest right now, he said.
The bill also would accelerate $55 billion of tax relief to encourage American businesses, small and large, to expand their investments over the next 14 months, the president said.
Obama cited a news report that small businesses have put hiring and expanding on hold while waiting for the Senate to act on the bill. “Simply put, holding this bill hostage is directly detrimental to our economic growth,” he said.
“So I ask Senate Republicans to drop the blockade,” Obama said.
The complete text of this article can be found in the BNA Daily Tax Report, August 31, 2010. For comprehensive coverage of taxation, pension, budget, and accounting issues, sign up for a free trial or subscribe to the BNA Daily Tax Report today. Learn more »
© 2010, The Bureau of National Affairs, Inc.
