President-elect Barack Obama is reportedly considering giving Americans a $300 billion tax cut to help boost the flagging economy.
According to the Wall Street Journal, the move is being mulled as a way to win over Republican support of Obama’s stimulus package, which also includes proposals for billions of dollars of spending on infrastructure and the environment.
One part of the plan involves reductions for those who pay income tax or claim the earned-income credit, which is aimed at helping low and mid-income workers.
This correlates to the $500 Making Work Pay payroll tax credit that was proposed by Obama while he was campaigning for president.
Under the proposals, businesses – including smaller employers – would also receive tax breaks such as a credit for creating new jobs.
Congressional officials said that around 40 percent of the president-elect’s stimulus package could be made up of tax relief measures.
In recent days, top Republican lawmakers have warned Congress not to rush an economic stimulus package without first seeking the approval of the public.