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Among Obama's proposals to boost the economy are a $250 payment to Social Security recipients, $25 billion to help cash-strapped states and $30 billion in Wall Street bailout money redirected to help community banks lend to small businesses. "It's a good first step," Obama senior adviser David Axelrod said. "There's no doubt we need to do more." Republicans and some Democrats were unhappy that Reid abruptly dumped about $70 billion worth of tax breaks for businesses and individuals, help for the unemployed and additional Medicare payments to doctors from a compromise measure unveiled earlier this month by Sens. Max Baucus, D-Mont., and Charles Grassley, R-Iowa, the chairman and ranking Republican on the Finance Committee. In addition to the hiring tax incentives and highway funding, the bill would extend a tax break for small businesses buying new equipment and modestly expand an initiative that helps state and local governments finance infrastructure projects. The larger Finance panel bill included about $33 billion in popular tax breaks, including an income tax deduction for sales and property taxes and a business tax credit for research and development, that would be extended through 2010. Those ideas have sweeping support among lawmakers and have been routinely renewed for years. Business groups and economist Zandi of Moody's Economy.com say companies are unlikely to hire workers just to receive a tax break. That means most of the tax benefits would go to companies that would have hired new workers anyway. "Obviously it's not very efficient," Zandi said. "It's something worthwhile doing as an insurance policy but it's not something one would want to do in any other circumstance."
[Associated
Press;
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