Obama to Pitch Permanent Research Tax Credit

[mike r]

Source: New York Times

As part of his pre-election push to spur the slumping economy and his party, President Obama this week will ask Congress to increase and permanently extend a popular but costly tax credit for businesses’ research expenses, and to pay for it by closing other corporate tax breaks, according to administration officials.

Mr. Obama is planning to outline the $100 billion proposal on Wednesday in a speech in Cleveland on the economy. The White House chose the venue partly to draw a contrast with a recent economic address there by Representative John A. Boehner of Ohio, the House Republican leader who would probably become House speaker should his party win a majority in November.

Besides seeking a permanent research credit, Mr. Obama will call for expanding the simpler of two credit options available to businesses. He would increase that to 17 percent from 14 percent.

The research credit, which has existed in some form since 1981, has strong bipartisan and business support. Yet the prospects for Mr. Obama’s proposal are unclear. Congress returns from a break in mid-September but will be in session only a few weeks before leaving for midterm election campaigning. Also, Republicans do not want to give Democrats boasting rights to legislative victories, even for a proposal like this one, which Republicans have long espoused.


Read more: http://www.nytimes.com/2010/09/05/us/politics/05tax.html

[msongs]

1. well that oughta create a lot of jobs for....unemployed people nt

[onehandle]

2. Cut! Cut! The word is Cut! Say Tax Cut!

Dammit! Who comes up with these wimpy phrases in the party?

[rhett o rick]

3. Creating jobs in China is not the answer we are looking for Pres Obama. nm

[Qutzupalotl]

4. Long term, this is a good investment

to the extent that the resultant innovation will be good for the economy and businesses. But what he needs is a short-term job stimulus, like another WPA program, and he needs it pronto. We all do.

If he wants to pass this credit, he has to force Republicans to go on record for or against an important tax cut. Put them on the defensive.

But the Republicans smell blood in the water and most are not likely to go along with a victory for Obama before the midterms, especially if they think they can pass it after they take control of Congress. (I don't think they will, BTW.)

[bowens43]

5. Obama buys into another dumbass conservative idea.......

Tax cuts for businesses do NOT create jobs in the US. Maybe at one time but not any more.

[OhioChick]

6. +1 n/t

[Dr.Phool]

11. +10

More cosmetic, ineffective bullshit.

Just look like you're doing something. This ranks up there with Gerald Ford's "Whip Inflation Now" buttons.

[chill_wind]

20. Yep. But give it a day or two around here

for the blue link talking points to get solidified-- and it'll be manna from heaven!!

[txlibdem]

14. +100

Darn right. Decades ago maybe but no more.

WPA is the only answer to getting the economy going again. It's obvious to anyone with double digit IQ that businesses are putting the brakes on the economy not helping it.

[primavera]

17. Actually, they never have

Businesses take their tax savings and invest them in whatever ventures produce the highest profit margin, and the highest profits are usually to be found in Third World countries where the IMF and World Bank have compelled them to put their national resources up for pillaging at pennies on the dollar. There's far less percentage in investing in American businesses that have to earn profit the old fashioned way by working for it.

[stray cat]

7. If progressives are against research and development - ie progress

How do they plan to keep jobs from going to countries that do believe in r&d or get energy independence?

[nyy1998]

15. +1

[primavera]

21. No one's against R&D

The question is whether tax breaks for corporations is an effective way to support R&D and, based upon past history, tax breaks for corporations haven't accomplished much besides making corporations even more obscenely wealthy than they were before.

[w4rma]

8. Sounds good, if it isn't used to give tax credits to multinational corporations that use the money

for foreign R&D.

[Fearless]

9. How about closing loopholes and giving the money as health care subsidies.

[Name removed]

10. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Doctor_J]

18. duckduckduck,

it's time for you to go back to Oozebeckistan. We can hear King Glenn's taking points 24/7 on any radio station or TV channel, and in 99% of the newspapers. We don't need them posted here.

[LawnKorn]

12. What we really need is direct Government funding of clean, renewable energy

We can pay for intensive research into photo voltaic, wind power, tidal, and geo thermal by cutting the subsidies we give to the big oil companies. Putting a cap on carbon pollution and trading carbon emissions with low polluters will not only lower the release of greenhouse gasses, but the revenue generated from trading carbon credits could be reinvested into research and development here in the United States.

[DallasNE]

13. Tie These Tax Credits

To domestic job creation and I'm all for it.

[Joe Bacon]

16. Screw corporations. Give working people a Payroll Tax cut

Exempt the first $35,000 of wages from FICA Taxes and take the FICA maximum off so the rich pay their fair share! Now that would put some real money in people's pockets!

[Mickeyc1004]

19. Why not?

It might keep more jobs in the science field.

What some people seem to be missing is, they are paying for it by..."closing other corporate tax breaks" which in my opinion is a good thing.

I think Obama is doing a great job.