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U.S. Army Captain Michael Kelvington, commander of the Battle company, 1-508 Parachute Infantry battalion, 4th Brigade Combat Team, 82nd Airborne Division, bows next to remains of Gulam Dostager, a member of Afghan Local Police who was killed in the blast of an Improvised Explosive Device (IED) during the joint Tor Janda (Black Flag in Pashtu) operation, in Zahri district of Kandahar province, southern Afghanistan May 25, 2012. REUTERS/Shamil Zhumatov (AFGHANISTAN - Tags: MILITARY CIVIL UNREST CONFLICT TPX IMAGES OF THE DAY)

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Factbox: Obama, Republican offer competing economic plans

WASHINGTON | Wed Sep 8, 2010 12:35pm EDT

WASHINGTON (Reuters) - President Barack Obama and House of Representatives Republican Leader John Boehner on Wednesday offered competing plans to boost the lackluster economy, setting the stage for an intense debate over tax and spending policies as campaigning for November 2 congressional elections heats up.

Here is a comparison of those competing proposals:

EXPIRING TAX CUTS

Former President George W. Bush's 2001 and 2003 tax cuts expire at the end of the year and income tax rates revert back to pre-2001 levels.

* Obama wants to permanently extend tax cuts for middle-income people -- couples earning less than $250,000 and individuals earning less than $200,000. For people in higher income categories, Bush tax cuts would expire as scheduled under current law.

Democrats argue that continuing middle-class tax cuts will help shore up consumer spending, while tax cuts for the wealthy add little to overall economic demand.

* Boehner wants to extend all the Bush tax cuts, including those for the wealthy, for at least two years.

Republicans argue allowing tax cuts to expire for upper income people will hurt small business owners and discourage hiring.

GOVERNMENT SPENDING AND ADDITIONAL TAX BREAKS

* Obama is calling for creation of a $50 billion infrastructure investment bank that would expand federal spending on highways, roads, bridges and other transportation systems. Obama argues it will help create new jobs.

* Obama also called for allowing businesses to accelerate their tax write offs of new capital investments and for a permanent extension of the popular research and development tax credit. This is something Republicans have supported in the past.

* Boehner is calling for a cut in non-defense government discretionary spending to bring spending next year to 2008 levels. He argues it would save taxpayers $100 billion next year. He also says the $814 billion economic stimulus enacted last year hurt U.S. economic growth.

* Democrats say moving too quickly to impose austerity measures would slow economic growth even further.

* Republicans counter that businesses would step up demand and hiring with less government taxation and spending.

(Reporting by Donna Smith in Washington; Editing by Jerry Norton)
Politics
Small Business
Barack Obama
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Comments (6)
cynicalme wrote:
When expenses exceed income you cut expenses immediately to balance your budget. While we do this on a personal level, the current government has done exactly the opposite — going on an out-of-control spending spree that has done NOTHING to stimulate the economy. Build roads? This isnt the 1930s where the ordinary Joe could get a job replacing dirt roads with asphalt. Today overpaid union bums will get hired, repair the road and then go back on unemployment. We need jobs in manufacturing and industry for long term economic growth, a concept the current socialist government is too stupid to understand.

Sep 08, 2010 4:04pm EDT  --  Report as abuse
cynicalme wrote:
How to “fix” the economy – Cut the size of our bloated government NOW by 35%. Repeal government employee unions. Encourage small business with financially sound legislation to employ the non-union workers who make up 80% of the workforce. That’s all it takes, and it doesn’t cost a penny.

Sep 08, 2010 4:28pm EDT  --  Report as abuse
Trooth wrote:
This is the economic plan that Democrats ignore and call the Republicans the party of no. Here is how it works when you have a majority in congress and senate. Proposals for bills come from the Democrats, they state that they want to work across the aisle, but will not put any republican ideas in a bill. When time comes to vote on the one sided (one sighted) Democrat Bill, Republicans vote no. They don’t get a changes to put forth a bill because they are the minority.

But the CNN and Move On crowds only know how to repeat the party speaking points that get emailed to them. They are just as blind as the Fox news crowd. The best times in government are times of Grid Lock. Think of Clinton 94-2000, Reagan his whole 8 years… When the government is paralyzed we all win.

Sep 08, 2010 8:23pm EDT  --  Report as abuse
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