The Obama administration is flirting with the idea of cutting taxes to help stimulate the economy, The Wall Street Journal reports today.
Government officials tell the Journal that the White House is mulling more tax cuts for small businesses, reductions in payroll taxes, among other ideas. The discussions occur in the context of the expected expiration of the Bush-era tax cuts at year end. A key issue for the administration is how to weigh skyrocketing federal deficits against the need to create a path to economic recovery.
In his address to the nation last night regarding the end of combat missions in Iraq, President Obama pointed to the need to bolster the U.S. economy:
Our most urgent task is to restore our economy, and put the millions of Americans who have lost their jobs back to work. … This will be difficult. But in the days to come, it must be our central mission as a people, and my central responsibility as President.
Obama also said that the U.S. would remain engaged in Afghanistan for a limited time and would “begin a transition to Afghan responsibility” next August. Just maybe, the end of those two conflicts will yield a little fiscal wiggle room for the government.
