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The following article was published in our article directory on September 8, 2010.
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Obama has 200 Billion U.S. Dollars for Corporate Tax

Article Category: Business Management

Author Name: xia zihui

Will invest 50 billion U.S. dollars earmarked for infrastructure facilities, 200 billion U.S. dollars for corporate tax cuts, to gain support for the mid-term elections

Local 8, U.S. President Barack Obama will deliver a speech in Cleveland, Ohio, announced a total of about 200 billion U.S. dollars in corporate tax cuts, he also announced this week a total of 50 billion U.S. dollars of infrastructure programs. These are gradually introduced in the recent White House economic stimulus measures. U.S. media pointed out that Obama even out to stimulate the economy "combination punches," intended : to revive the sluggish U.S. economy into a new tonic, while mid-term elections will be held at the end of set the tone.

50 billion is only the first year of investment

September 6, Milwaukee, Wisconsin, U.S. Labor Day celebration, the president officially announced that 50 billion U.S. dollars the total amount of infrastructure construction projects. He said:
"Many Americans have been unemployed for months, even years, and now coincides with the United States need to build infrastructure in many places, we had the world's best infrastructure, and now we can build up again."

From Washington to Milwaukee, Wisconsin, 2 hours time, the president returned again two years ago, the "presidential race", he delivered an impassioned speech to counter the Republicans "will say" ... ... "Washington Post "to describe that speech Obama Labor Day celebration, more like once again opened the curtain for electioneering. Not a coincidence that Wisconsin is the mid-term election, one of the key states. The state Democratic Party at least two seats can be dangerous.

The transport infrastructure planning period of six years, 50 billion U.S. dollars investment in the first year only, the whole project cycle total investment is unclear. Under the plan, the U.S. will rebuild 240,000 km highway; construction and maintenance of 6,400 km rail; repair 240 km runway; will install a new air traffic control system to shorten flight time, reduce flight delays. In addition, Obama also suggested the creation of national "infrastructure bank" for the federal and local infrastructure to provide low-interest loans, investment highway, bus and rail.

To create 1.75 million jobs

The White House said that if these 500 billion economic stimulus package to the full Congress approves, it will create 1.75 million jobs.

However, even if successfully approved the program starts, the earliest until next year before the actual recruitment of workers, improve the employment situation and the sluggish labor market this year of little help. The U.S. unemployment rate remained high at 9.6%. Obama said this: "All these measures will not create jobs now, but the long term, will help our economy run more healthy."
The new infrastructure program will be approved by Congress. As the midterm elections approaching, Congress only four weeks time to discuss the plan, the original schedule, according to Congress, they plan to focus on another SME lending legislation.

In order to avoid the public to "huge deficit" concerns, the White House also said that plans will be financed through the next 10 years to phase out the oil and gas companies tax breaks to make up, will not increase the federal deficit.

Deal to benefit 1.5 million companies

In addition to investment in infrastructure, Obama will be announced on the 8th totaled about 200 billion U.S. dollars in corporate tax cuts.

Currently, the U.S. business investment spending will be tax relief, but need to wait a long time. The new plan will allow companies when they get a tax break to encourage enterprises to expand investment and promote overall economic development. The White House expects the new tax cuts come into effect, there will be 1.5 million U.S. companies benefit.

For example, under existing law, if a company invested 10 million U.S. dollars to build new plants, the money will be tax relief for the way in the next 3-20 years to be paid back to the company, the specific time depends on the investment categories. However, in some cases, some companies went bankrupt less than a full refund. According to the new measures, this year the company invested 10 million U.S. dollars can be removed from the tax, which means the company can be financed in the short period of time, causing investment funds to make up the gap.

If the smooth implementation of the scheme, U.S. companies in 2011, new investment will be 100% tax-free. This will help companies in two years to save 200 billion U.S. dollars, making them more abundant cash. White House officials said, although the tax cuts mean less government revenue, but the way of economic growth will be offset.

The tax cuts also have retrospective effect, this means that from September 8th the day, enterprises access to new investment tax cuts, without the need to wait until after Congress re-investment. The program will be December 31, 2011 expiration.

"Put together an economic stimulus plan"

To prepare for the midterm elections, many Republican lawmakers re-election campaign promised to cut government spending, therefore, they are likely to object to a pay a large sum of federal funds to stimulate the economy. A White House official said the White House plans to immediately and members of Congress discuss the new program, but when to get Congress to pass unexpected, the official stressed, the new program Bing Bushi an immediate economic stimulus plan to.

Senate minority leader, Senator Mitch McConnell said: "This is a hasty patchwork of economic stimulus plan, 50 billion U.S. dollars will not solve the problem."

All along, the Republicans are more supportive of tax cuts, this time for Obama's proposed tax cuts, Republicans are minor complaints. House Republican leader John Berner said: "The White House did not see the overall situation. These are not bad ways, but they failed to solve the economic impact of the two major problems: excessive government spending and the Democratic Party, the uncertainty of government policies."

Obama has recently been playing for the "economic card," a senior Republican John McCain, said he doubted the President's new economic stimulus measures could help the Democrats in the midterm elections in hand, "they east a hammer a hammer West If two years ago to do these things, the situation will be much better. "

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