Also part of the new stimulus plan are hundreds of billions of dollars in proposed tax cuts aimed at stanching job losses and prompting businesses and municipalities to make growth-producing investments. Industry officials welcome them, but some are not convinced they will have the economic impact legislators and the Obama administration envision.
“This recovery package will provide tremendous tax relief...while also giving businesses the boost they need to create new jobs,” said Charles B. Rangel (D-N.Y.), chairman of of the House Ways and Means Committee, in announcing the Jan. 15 incentives. Aside from income tax credits and those related to higher education and housing, the proposal offers a slew of business incentives from eased tax bites for operating losses and exemptions for investing in distressed areas to energy conservation tax credits and repeal of limits on private activity bonds.