Obama Weighs New Wave of Tax Cuts, Stimulus

Team searches for ways to bolster economy
By Kevin Spak,  Newser Staff
Posted Sep 1, 2010 7:05 AM CDT
Updated Sep 1, 2010 7:39 AM CDT
President Barack Obama makes a statement on the economy, Monday, Aug. 30, 2010, in the Rose Garden of the White House in Washington.   (AP Photo/Pablo Martinez Monsivais)

(Newser) – With economic recovery looking sluggish at best, President Obama is considering a national infrastructure program, alongside a wave of tax cuts for businesses and individuals. Up for discussion are additional tax cuts for small businesses, a possible payroll tax cut for businesses and individuals, and other tax breaks aimed at encouraging businesses to hire, sources tell the Wall Street Journal.

The White House is wrestling with whether it should focus on ideas, like tax cuts, that would appeal to Republicans, or on stimulus spending that it believes will have a bigger economic impact, but which might hurt Democrats politically. Congressional Democrats, meanwhile, are busy campaigning, and unlikely to make a major legislative push. “Everyone is mindful of the deficit problem, and everyone is mindful of the slack economy,” says Charles Schumer. “So I think the program will be narrow and focused.”

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