After months of hearing about how Barack Obama and the congressional leaders will raise taxes, spread the wealth, and spend a trillion dollars to stimulate the economy in the best Keynesian tradition, we begin the new year with this news from By Jonathan Weisman and Naftali Bendavid of the Wall Street Journal:
President-elect Barack Obama and congressional Democrats are crafting a plan to offer about $300 billion of tax cuts to individuals and businesses, a move aimed at attracting Republican support for an economic-stimulus package and prodding companies to create jobs.
The size of the proposed tax cuts -- which would account for about 40% of a stimulus package that could reach $775 billion over two years -- is greater than many on both sides of the aisle in Congress had anticipated. It may make it easier to win over Republicans who have stressed that any initiative should rely more heavily on tax cuts rather than spending.
Talk about having to swallo... [Read Full Article]