Monday, January 5, 2009

Obama Meets With Pelosi, Reid. Discusses $700 Billion Stimulus, "Tax Cuts"

President-Elect is on the job! Today marks his first full day of work in Washington.
From Fox:

According to a source with Obama's transition team, the president elect wants "tax cuts" to make up 40 percent of the package or about $270 billion to $310 billion depending on the size of the package.

About $150 billion will be offered in tax credits or rebates of up to $500 per worker ($1,000 for couples) to help stimulate consumer spending. This would be done mainly through reducing tax withholding formulas in paychecks. Low-income individuals who don't pay income taxes but pay Social Security and Medicare payroll taxes would also get rebate checks under the Obama plan.

"This relief won't be limited to people who actually pay taxes. Remember there are approximately 157 million federal tax returns filed every year, but just over 100 million of those actually pay federal income taxes," a Senate GOP aide told FOX News.

Under the Obama proposal, the stimulus measure would also include about $200 billion to help revenue-starved states with their Medicaid programs and other operating costs.

More than $100 billion would be offered in tax breaks for companies to save and create jobs and to make new investments in plants and equipment. Obama has said he wants to create 3 million new jobs.

Interesting ideas, but will this pass Republican opposition? And "tax rebates" for people who never paid the taxes in the first place?

"This is an enormous bill. It could be close to a $1 trillion spending bill," McConnell said. "Do we want to do it with essentially no hearings, no input, for example, in the Senate from Republican senators who represent half of the American population? I don't think that's a good idea."

After meeting with Obama, House Minority Leader John Boehner, R Ohio, said he was concerned about the plan's cost.

"This is not a package that's ever going to be paid for by the current generation," Boehner said. "It's being paid for by our kids and grandkids."

More on the $300 Billion in "tax cuts":

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