Obama Expected to Drop Business Tax Credit
By Shailagh Murray
President-elect Barack Obama will address Senate Democrats at their weekly luncheon tomorrow and will field questions about the economic stimulus package and the financial rescue program, among other topics, a senior Obama aide said.
Congress is considering both plans now as urgent measures aimed at stabilizing financial markets, creating jobs, and easing the credit crunch and foreclosure crises that are fueling much of the current distress. Obama has called for quick action on a stimulus plan that could climb to $1 trillion and is encouraging skeptical lawmakers to allow for release the second $350 billion tranche of the controversial bailout package approved by Congress last fall.
On the stimulus, as a show of good faith as negotiations unfold, Obama is expected to drop his least popular proposal, a $3,000 tax credit for companies to create new jobs. Many Democrats have criticized the incentive, touted by Obama on the campaign trail, as ripe for abuse and of dubious merit.
"We've always said we're open to other ideas. This was never set in stone," said a senior Obama adviser of the tax proposal and Obama's stimulus proposals in general.
The aide said Obama would meet with House and Senate Republicans after Jan. 20, and that a meeting with House Democrats also was in the works.
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