President-elect headed to Capitol Hill to talk about tax cuts, spending plans
President-elect Barack Obama, newly arrived from Chicago two weeks ahead of his inauguration, heads off to Capitol Hill on Monday to make a sales pitch for his economic-stimulus package and about $300 billion in tax cuts, in a meeting with the congressional leadership of both parties.
Obama plans to meet House Speaker Nancy Pelosi Monday morning. He will then participate in a bi-partisan meeting Monday afternoon with Pelosi, Senate Majority Leader Harry Reid and Republican leaders Rep. John Boehner and Senate Minority Leader Mitch McConnell.
Obama will make the case to lawmakers for his stimulus package -- a plan that could reach about $775 billion over two years.
That figure is already making Republicans uncomfortable, and Democrats said on Sunday that getting a plan through Congress could take six more weeks. They had hoped to approve a package for Obama to sign immediately after being sworn in.
Obama and Democrats are crafting a plan to offer about $300 billion in tax cuts as part of the overall stimulus package. The tax cuts would account for about 40% of the package.
Most workers would get a $500 payroll tax credit, and businesses would get a number of tax breaks.
Obama spokesman Tommy Vietor said the aim of the tax cut plan is fast economic stimulus.
"We are working with Congress to develop a tax cut package based on one principle: what will have the biggest and most immediate impact on creating private sector jobs," he said.
Obama would give businesses a host of tax breaks, Vietor confirmed.
Companies would be allowed to write off losses incurred last year, as well as any losses from 2009.
Moreover, companies that make new hires or forgo layoffs would get a one-year tax credit.
And small businesses would be allowed to write off several different expenditures up to $250,000 in 2009 and 2010.
In a radio address on Saturday, Obama called for quick action on the stimulus package.
"Economists from across the political spectrum agree that if we don't act swiftly and boldly, we could see a much deeper economic downturn that could lead to double digit unemployment and the American dream slipping further and further out of reach," he said.
The president-elect is aiming to create 3 million new jobs with his stimulus package, with more than 80% of them in the private sector.
Obama is also scheduled to hold a meeting with his top economic advisers on Monday afternoon.
