Obama Announces New Incentives for Small Businesses
President Obama traveled today to Cleveland to announce a new round of economic incentives which he hopes will get businesses to start spending and hiring.
The president's proposal calls for three new programs, but stopped short of calling it a stimulus package. Obama also said he would like to see some tax cuts expire that were passed for the wealthiest Americans which were passed under President George W. Bush; while tax cuts for the middle class should be extended.
The new business incentives would give businesses a 100 percent tax credit for spending on equipment and physical plant; revive a research and development tax credit that expired in 2009; and plow $50 billion into transportation infrastructure improvements.
Not everyone agreed that this is the right plan for the economy. Mark Trumbull of the Christian Science Monitor expressed skepticism that these programs will produce the intended result. Others, like John Lott on Fox News immediately jumped on the plan, saying Obama violated the rules of maintaining a stable tax rate that allows businesses to make long-term spending decisions.