Obama Proposes Tax Cut $ 100 Billion

United States President Barack Obama will propose a tax subsidy business sector worth U.S. $ 100 billion and apply permanent. President Obama's government hopes that subsidies will boost the country's economy is still weakening.
The Government will provide facilities to the companies that enhance and expand research and development, the company that developed the technology in the country, as well as companies that maintain the number of workers in the country.
Expose Obama's policy proposals will be forwarded on its way to Milwaukee and Cleveland, on Wednesday.

United States impose tax subsidies since 1981 as a temporary policy. Tax subsidies in the field of research has been repeatedly extended by Congress. Last renewal period runs out in December 2009, and the proposed extension are still stuck in the Senate.

Professor of Economics, University of California, Laura Tyson, who is also a member of Obama's economic advisory team, said the partial exemption of income tax and the tax cuts permanent for research and development should be a priority in current economic conditions.

"We agree America needs policies that create jobs. The deficit now is not the main issue," Tyson said in an interview with CBS television.

Tyson added that the main issue is the recent economic slowdown and lack of employment opportunities that required the right policy priority on job creation.

This time the White House did not request such a large fund last year, which reached U.S. $ 814 billion, for an economic stimulus, because Congress apparently was not too supportive of government stimulus spending large amounts. Moreover, Obama's new proposal overshadowed the election of members of Congress on November 2.

Obama this week also will visit Wisconsin and Ohio, which is affected by the severe recession. Both locations are also a political battle for Democrats to win congressional elections.

Economic policy proposals emerged after the United States Department of Labor announced a growing number of 54 thousand people unemployed last month and the unemployment rate rose to 9.6 percent.

Although the number of newly unemployed was smaller than Wall Street economists forecast of 120 thousand people, employment is not sufficient to absorb the unemployed it.

Obama in the Rose Garden last week said that the stimulus that had previously not given enough. Therefore, it takes additional steps to create jobs and maintain economic growth, including tax cuts for the middle class.
Besides proposing the tax subsidies for businesses, Obama continues to urge the Senate approved the use of funds amounting to U.S. $ 12 billion to small businesses and U.S. $ 30 billion to help the credit disbursement in the sector.

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