Obama to Announce Incentives for Businesses, GOP Calls for Tax Cuts Extension
President Obama today will propose new incentives for businesses that have even earned the endorsement of potential GOP presidential candidate Mitt Romney. The president is set to outline new tax breaks for businesses.
But even before the president takes the stage, the ongoing stalemate between Republicans and Democrats has cast a shadow on the idea, frustrating many business owners.
In Cleveland, Ohio, Obama is expected to push for incentives that would allow businesses to write off 100 percent of their spending on new plants and equipment through the end of 2011 and retroactive to Sept. 8.
The proposal, White House officials say, will benefit 1.5 million companies and would be “the largest temporary investment incentive in American history,” resulting in tax cuts of $200 billion over two years.
Obama will also push Congress to increase and permanently extend the research and development credit, an idea that was proposed last year and is expected to cost $100 billion over 10 years.
But business owners are not holding their breath for any big changes in the next few months. For all the talk, the chances of action in the near-term appear slim, with Congress skittish about the country’s soaring debt and ever more focused on the upcoming elections.