WaPo: Obama to Drop Business Tax Credit

January 13, 2009

In what could possibly be a promising sign of things to come, the Washington Post is reporting that Barack Obama is dropping his $3,000 per job tax credit given the backlash it has received. Many fellow Democrats and many in the fiscal policy research community (and if I had to guess probably some on Obama’s economic staff) had reservations about its implementability. From the Washington Post:

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.

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