Obama’s Tax Promise Stands
President-elect Barack Obamas economic stimulus plan still stands, and may be implemented soon after his January 20th inauguration. Obama’s top advisors say that they will not back away from a promise to cut taxes on the middle class and raise them for the wealthiest, as they made the case for a massive new stimulus package made to revive our hurting economy.
The two-year spending package could exceed $775 billion, coupled with tax policies in favor of middle class Americans. The recovery plan seeks to create or save 3 million jobs. The plan includes an immediate tax cut for middle-class families, with $1,000 for couples and $500 for individuals, which will come with reduced tax withholding from paychecks. In addition the incoming administration plans to propose that the tax cuts become part of the permanent tax cut he will have in his upcoming budget, though the form of those cuts has yet to be determined. It is likely that the decision will be based on Obama’s campaign proposal which stated that families earning less than $250,000 would see their taxes remain the same or decrease.
The idea is to give Americans more spending money in order to revive the economy. The plan is to also include new spending on infrastructure projects, aid state governments and programs to create new jobs. With people suffering across the country, and the economy slipping, the sooner President-elect has the bill to sign the better it is for everyone and that is exactly what Obama and his top advisors are pushing the Congress to do.
