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Obama ‘Rethinks’ Business Tax Credits

From the Wall Street Journal:

Obama Team Is Reconsidering Proposed Tax Credit for Hiring

By GREG HITT and JONATHAN WEISMAN

January 13, 2009

President-elect Barack Obama’s proposed tax credit for new hiring is likely to be scaled back — and could be jettisoned from his economic-stimulus plan altogether — in favor of new and bigger tax breaks for renewable-energy development and production, said individuals familiar with the situation.

During the campaign in October, Mr. Obama had proposed a tax credit of $3,000 for each new hire made by businesses, in response to mounting job losses. Transition aides were determined to keep that promise in his economic-recovery package, but the proposal has come under strong criticism on Capitol Hill, with many members of Mr. Obama’s own party raising concerns about its effectiveness.

Economists of all political stripes have said businesses would likely claim the credit for hires they would have made anyway, or worse, lay off workers simply to rehire them and claim the tax break.

"That’s one that gets a lot of opposition," said Sen. Charles Schumer, a New York Democrat

The Obama team is showing less flexibility on another big campaign tax proposal, the proposed "Make Work Pay" initiative, which would in effect temporarily cut payroll-tax withholdings for working Americans. Mr. Summers is telling lawmakers the initiative is "non-negotiable," said individuals familiar with discussions.

You would think the man Messiah would have the good grace to at least wait until he has been sworn into office before he begins to renege on all of his campaign promises.

But he obviously does intend to hit the ground running – running away from everything he has said before.

(Thanks to BillK for the heads up.)

This article was posted by Steve on Tuesday, January 13th, 2009. Comments are currently closed.

14 Responses to “Obama ‘Rethinks’ Business Tax Credits”

  1. BillK says:

    Tax credits for hiring?

    Not so fast.

    Instead, the Government prefers subsidizing industries that will never exist without a subsidy, of course.

    From the WSJ:

    Obama Team Is Reconsidering Proposed Tax Credit for Hiring

    By Greg Hitt and Jonathan Weisman

    President-elect Barack Obama’s proposed tax credit for new hiring is likely to be scaled back — and could be jettisoned from his economic-stimulus plan altogether — in favor of new and bigger tax breaks for renewable-energy development and production, said individuals familiar with the situation…

    http://online.wsj.com/article/SB123180807306575741.html

    So, to recap, no tax credits for businesses, and no money for taxpayers who have a job.

    But handouts for the “without government subsidies we go out of business” ‘renewable energy’ business and of course those who aren’t actually paying taxes now.

    Where again are those folks who thought Obama might pursue a centrist route?

    It’s still a possibility, but would he actually have the guts to veto the wide-eyed spending of the leaders of his own party?

  2. proreason says:

    Every private sector job steals a job from government.

    We can’t have that.

  3. clifcrds says:

    This is just a preview . . . NOW the Tiger is really showing his stripes! (emphasis mine)

    Obama seeks Dem votes for $350 billion bailout
    By DAVID ESPO, AP Special Correspondent David Espo, Ap Special Correspondent
    January 13, 2009
    http://news.yahoo.com/s/ap/obama_economy

    WASHINGTON – President-elect Barack Obama has asked Democratic senators not to stand in the way of an additional $350 billion in bailout funds, calling the money essential to helping the troubled economy.

    Obama made his pitch in a meeting in the Capitol, where he attended the Democratic senators’ closed-door luncheon.

    Lawmakers who emerged from the session said the president-elect pledged to correct what they believe were shortcomings in the way the Bush administration handled the first $350 billion. They added he would veto any attempt to block his own administration’s use of the funds.

    And by what I am seeing this tiger is wearing Pink stripes on a Brown coat.

    Pink as in socialist and Brown as in Brownshirt Thug. He wants TOTAL CONTROL of the 350 Billion! He wants to exclude any imput from not just the taxpayers, not just the Republicans, but total exclusion from his own Commiecratic Party!

    Even Helen Keller could see exactly just what kind of a Socialist Brownshirt Thug the sheople have given the reigns of power to in exchange for living the life of a confinement hog.

    I’m afraid its getting very close to “lock & load” time!

  4. Liberals Demise says:

    Got any spare “CHANGE”? We are bankrupt here….and here….and here…….

  5. proreason says:

    Hot Air reports Obamy might be meeting with Limbaugh and other conservative leaders tonight.

    Rush had an emergency host today. The report also says there are hints on Rush’s web-site.

    If it’s true, it is interesting indeed.

    • JohnMG says:

      Pre-emptive strike?

    • proreason says:

      “pre-emptive”?

      Maybe. Obamy is probably positioning himself to be able to say he included all sides in the discussion, so it’s sour grapes to be criticising him.

      Can’t see Rush falling for anything like that. He won’t be climbing on the Hopeychangey bandwagon tomorrow.

    • JohnMG says:

      I agree to a point. Everything is “window dressing” with Obama. This is probably just a flanking move by him that will play well in the MSM. And those with the tin-foil hats will buy into the charade.

    • pinandpuller says:

      Rush said he would give his input after all but Drudge says its George Will, David Brooks and Bill Kristol.

    • proreason says:

      Swell. Brooks and Kristol speaking for conservatives. Now I can rest easy.

    • JohnMG says:

      I don’t know about Kristol, but Brooks voted for “Honest Obe”. Ain’t that a fine kettle of ‘Sea Kittens’?

    • proreason says:

      Kristol is a Washington guy. He’s pretty conservative, but he’s one of those guys who also wants to stay in the cocktail party circuit, so he’s always finding something to like about the lieing libs.

    • Liberals Demise says:

      “Sea Kittens”……. more like Land Sharks…..here kitty kitty!!

  6. Lipstick on a PIAPS says:

    How can Obama rethink when he didn’t even think in first place? Guess Obama is
    ‘Rethinking” all of his campaign promises. The financial ones anyway!


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