NEW YORK - President-elect Barack Obama launched his campaign Monday for a massive package of tax cuts and spending proposals to revive an economy mired in recession. Obama met with congressional leaders from both parties. He also plans to deliver an important speech on the economy on Thursday.
"The reason I am here today is that we will present our latest ideas to Congress," said Obama. "We hope that this week start in this process."
The elected president will propose nearly $ 300 billion in tax cuts for individuals and businesses. Public has not put a price on his global stimulus plan, but his advisers have said they expect to fall between $ 675 billion and $ 775 million, 40% of which would be tax cuts.
According to a spokesman for Obama, several tax incentives are in serious consideration.
Middle-class tax cuts
The tax credit is likely to be offered only to those below a certain income level, but the team Obama has not specified that the cutoff would be. The credit will be refundable, which means that even files without any tax on fiscal responsibility - often very low-income workers - could receive.
The provision is similar to a proposal by Obama during the campaign.
"What is necessary for the economy at the moment [is] to put more money in the pockets of ordinary Americans who are more insecure about their jobs, which continue to see rising costs in an area such as attention of health, who are struggling to make ends meet, "he said on Monday.
Business and leisure travelers for losses: Obama is considering a tax break for companies that book losses in 2008 and 2009.
The stimulus plan may expand what is called the net-operating loss carryback to five years, up to two years now. The provision allows companies to apply their past losses and future tax bills so they can get money from taxes already paid or would otherwise have to pay.
Job Creation
Small businesses amortization
While political observers believe that the emphasis now added tax cuts for businesses as an important part of a stimulus package is one way that Obama's team hopes to attract Republican support, which is not how the Obama camp he sees it.
"We are working with Congress to develop a package of tax cuts based on a simple principle - what has the greatest and most immediate impact on job creation in the private sector and strengthening the middle class. We are guided it works, not by any ideology or special interests, "said a spokesman for Obama.
- Double the production of renewable energy and public buildings more energy efficient
- Rebuilding crumbling roads, bridges and schools
- Computerize the health care system
- The modernization of classrooms, laboratories and libraries.
"Economists across the political spectrum agree that unless we act boldly and quickly, you can see a much deeper recession," said Obama. "That's why we need an American Reinvestment Plan for recovery and that not only creates jobs in the short term, but stimulates economic growth and competitiveness in the long term."
The main objective of his plan: the creation of 3 million new jobs. More to come from the private sector, he said.
As Obama prepares to take office on January 20, the country faces a number of serious economic and political problems.
Nearly 2 million jobs were lost in the first 11 months of 2008 - the government's final reading on the employment picture will be released on Friday - and the economy has stagnated. Investors suffered the worst year in stocks since the Great Depression, and executions are increasing while housing values are declining in steps of registration.
Almost every state faces a budget deficit, forcing many to make plans to cut critical services and raise taxes.
To that end, Obama advisers and lawmakers have said they expect the legislation to provide greater assistance to states to pay for Medicaid, as well as a boost to unemployment benefits.
Many economists have called stimulus spending to approach or even exceed $ 1 trillion, if the Government hopes to beat back with a success of the deepest falls in more than two generations.
Some Democrats and Republicans have already raised red flags about the scope of the proposals of Obama and the prospect of a hurried attempt to pass legislation that would be spending the most expensive in the history of the U.S. Bill.
The timing of the Congress for the stimulus plan is not clear, nor Obama plans a formal plan to Congress.
"The urgency of this, everyone knows," said Majority Leader Harry Reid of the Senate, D-Nev., Said on NBC "Meet the Press" on Sunday. "But I will not have some false term [it], either February 1 or whatever. I want to make sure that all senators have some input into what is happening here and we do so as quickly as we can."
A vigorous debate is likely that several crucial issues. That the measures proposed in fact boost the economy? What is the proper balance between encouraging the planting of short-term deal with the financing of long term? Money is intended to provide long-term dividends for the economy as a whole only just acting for political reasons or agendas of the pet projects?
Obama tried to mitigate some of these concerns, on Saturday, when he called for "vigorous oversight and strict accountability for achieving results." He emphasized that his plan is not an attempt to "throw money at the problems of the economy.
"I am optimistic and I think that if we come together to seek solutions that were previously not the interests of either party, or the agenda of a group, but the aspirations of all Americans, and then we will meet the challenges of our time as well as previous generations have met the challenges of their own, "said Obama.