President-Elect Barack Obama has already outlined broad tax cuts and refunds that he would like to sign into law by early February. The proposed stimulus package would allow companies posting losses last year to get refunds on taxes paid as far back as five years ago. The plan would also award companies for hiring new workers by giving the company a one-year tax credit.
Individuals and couples would get tax cuts of about $500 for most workers and $1,000 for couples.
The total cost of the package could cost $800 billion or more. To find our more about the stimulus package, read the full article from the Associated Press here.
Sincerely,
MerchantCircle Community Relations
Obama administration needs to realize that in several months economic crisis and soaring deficit will be solely his administration’s and his party’s problem, so for any previous or future mistakes he’ll have to take the blame. Two-three months from now nobody will remember Bush’s policies and the Democrats have to be more careful on the long-term effects of massive spending. If the new stimulus fails, just like the past one, then this will balloon into Obama’s first political problem. We have to also realize, that on the long-term we won’t be able to afford more bailouts and there has to be alternative solutions, since we are passing the trillion Dollar deficit boundary. Printing more money can be utilized as short-term tool, but on the long run it will devastate economy. Something needs to be done immediately, but more regulation & spending does not seem to be a logical answer, we need another alternative solution. Maybe we should take pure libertarian approach and let the free market decide who wins or loses? This will cause social unrest and chaos, so as a society we can not afford this option either. Maybe we’ve killed the goose that laid eggs for us?
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