Obama tax plan runs into opposition from Dems in Senate

[babylonsister]

Obama tax plan runs into opposition in Senate

By STEPHEN OHLEMACHER
Associated Press Writer


WASHINGTON (AP) -- President-elect Barack Obama's proposed tax cuts ran into opposition Thursday from senators in his own party who said they wouldn't do much to stimulate the economy or create jobs.

Senators from both parties agreed that Congress should do something to stimulate the economy. But Democratic senators emerging from a private meeting of the Senate Finance Committee criticized business and individual tax cuts in Obama's stimulus plan.

They were especially critical of a proposed $3,000 tax credit for companies that hire or retrain workers.

"If I'm a business person, it's unlikely if you give me a several-thousand-dollar credit that I'm going to hire people if I can't sell the products they're producing," said Sen. Kent Conrad, D-N.D., a member of the committee.

"That to me is just misdirected," Conrad said.

Sen John Kerry, D-Mass., said, "I'd rather spend the money on the infrastructure, on direct investment, on energy conversion, on other kinds of things that much more directly, much more rapidly and much more certainly create a real job."

more...

http://hosted.ap.org/dynamic/stories/O/OBAMA_TAXES?SITE=CONGRA&SECTION=HOME&TEMPLATE=DEFAULT

[Idealism]

1. Agree with Sen Conrad

Supply-side economics ignored aggregate demand. They will hire workers only if they need more production, period.

[Nickster]

2. Maybe I'm wrong, but wasn't the tax credit for job creation idea a part of Kerry's Presidential run?

[backscatter712]

3. I'm with Congress on this one.

While Obama's existing stimulus plan is decent, one with more stimulus and less tax-cuts would be even better.

What would be better yet is one that raise taxes on the ultra-wealthy to help pay the bills and invest in the economy - take the billionaires and multi-millionaires down a few notches.

[Sadie5]

4. I'm with backscatter

Let the rich pay for once.

[leftstreet]

6. Ditto

:thumbsup:

[Winterblues]

8. Those business ONLY receive the Tax Credit if they hire.

I don't find any fault in bribing companies to hire people if more employed means more money into our economy. The money is going to the lower income brackets and not to the wealthy..

[rockymountaindem]

10. I think part of the problem might be

that even if that money is only disbursed if business hire, provision for some minimum level of disbursement would have to be made. This would mean setting money aside which, even if it isn't given out in the form of tax credits, would then be unavailable for other measures or projects. Maybe that kind of opportunity cost is the downside they see.

[napi21]

5. That waas put in there to gain Pub support. Remember, Obama said

he wanted this to pass with 80% votes not 51%. Like it or not, the congress only functions when there's compromise. I don't really see a problem offering this business credit for hiring or retraining. If no businesses access it, most of it just won't be used! Thhat's not throwing money away, or wasting it on anything. If it isn't accessed for it's intended purpose it won't be spent!

[theophilus]

7. Well, I could use that tax relief. It seems that nobody wants tax cuts

for the middle (and lower) classes. I also wish that (for once) the Dems could look just a tad monolithic and stand behind their Dem president. We are going to suffer if there are fractures among the Senate Dems, especially. I wish that Obama would offer a stick to the backs of the Corps who are taking this opportunity to shed employees. I think throwing hundreds of thousands out of work really makes the economy worse when these CEO run corps could hold their fire. I guess they just hate America. IMO

[leftofthedial]

9. I'd like $500 as much as anyone

but this won't help. We need jobs, not one-off gifts.

[Dawgs]

11. I agree with Kerry and the other Dems.

The stimulus package should be used to create jobs for Americans through infrastructure and new energy. Using this money for tax credits is a waste.

[anonymous171]

12. Now that unemployement numbers are up, the goal of the stimulus needs to change.

Before we just wanted to increase consumer confidence. Now we need to get people back to work. I agree with Congress.