Having trouble keeping up with Obama’s big week of goodies for the economy?
And now there’s this.
President Barack Obama, in one of his most dramatic gestures to business, will propose that companies be allowed to write off 100% of their new investment in plant and equipment through 2011, a plan that White House economists say would cut business taxes by nearly $200 billion over two years.
The proposal, to be laid out Wednesday in a speech in Cleveland, tops a raft of announcements, from a proposed expansion of the research and experimentation tax credit to $50 billion in additional spending on roads, railways and runways.
First, if you accept that the problem is lack of demand (and not the anti-business climate in Washington) then this will do nothing. Even with the tax credit, why invest if you already have excess capacity?
And second, will businesses keep insisting that Obama hates them? Probably.