With the general elections approaching and many Democrats struggling to hold on to their seats, President Barack Obama has embarked on a series of campaign stops and speeches in which he sought to lessen fears of higher taxes and bigger government.
Although the president recently unveiled a $180 million investment spending plan designed to revamp the nation’s transportation infrastructure, he also proposed a tax break package of some $300 billion for businesses in order to spur job creation.
However, some economists, as well as politicians like House Minority Leader John Boehner (R-Ohio), said that the proposal may not produce the intended consequences because the government’s deficit continues to expand, creating uncertainties related to high interest rates and inflation.
Moreover, the White House has said it is sticking to its plan to let the tax cuts for the wealthiest Americans expire at the end of this year, something the GOP says will further blunt the impact of tax breaks for businesses.
Still, Obama told an audience in Cleveland on Sept. 8 that preserving the Bush-era cuts "would have us borrow $700 billion over the next 10 years to give a tax cut of about $100,000 to folks who are already millionaires."