Business Groups Unimpressed With Obama's Tax Cuts

President Obama is rolling out a package of economic stimulus measures this week, and, along with new infrastructure spending, his proposals will include two business-related tax cuts: 100 percent deductible expensing for capital investments and making permanent the R&D tax credit. Obama will offer these proposals in a speech tomorrow in Cleveland.


Two influential business groups, however, are unimpressed.

With details of the proposals yet to be seen, Chamber of Commerce chief lobbyist Bruce Josten warned that the administration may pick winners and losers among different business sectors. Josten said in a written statement:

"The U.S. Chamber will support any proposal that spurs job creation, bolsters both short- and long-term economic growth. We will not support an approach where the government picks winners and losers--providing tax credits and incentives to politically favored industries and groups while sticking others with the bill. This is ultimately self defeating and puts politics ahead of sound economic decisions that can create jobs."Bottom line: This president and administration have had nearly two years to help turn around our economic situation. Their agenda of more taxes, regulations, and mandates clearly isn't working. In fact, it has created tremendous uncertainty and delayed and weakened the recovery."

At issue is whether the administration will offset these cuts and credits with other tax adjustments. If, for instance, the administration changes tax codes for the oil and gas industry in order to pay for the loss in revenue, those businesses (and thus the Chamber) won't be happy.

The National Federation of Independent Businesses, the nation's top small-business group, was similarly unimpressed by the plan.

"We don't think it's going to have a huge impact" on small businesses, said NFIB tax counsel Bill Rys, who pointed out that small businesses can already expense up to $250,000 of capital investment tax free and that not many small businesses are currently spending on research and development.

"Any business that's going to be aided by this is probably going to be larger," Rys said.
Presented by

Chris Good is a political reporter for ABC News. He was previously an associate editor at The Atlantic and a reporter for The Hill.

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well. Bestselling author Mark Bittman teaches James Hamblin the recipe that everyone is Googling.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well.

Video

Before Tinder, a Tree

Looking for your soulmate? Write a letter to the "Bridegroom's Oak" in Germany.

Video

The Health Benefits of Going Outside

People spend too much time indoors. One solution: ecotherapy.

Video

Where High Tech Meets the 1950s

Why did Green Bank, West Virginia, ban wireless signals? For science.

Video

Yes, Quidditch Is Real

How J.K. Rowling's magical sport spread from Hogwarts to college campuses

Video

Would You Live in a Treehouse?

A treehouse can be an ideal office space, vacation rental, and way of reconnecting with your youth.

More in Politics

Just In